Grainger 3Q sales up 7 percent
Grainger reported third-quarter sales of $2.6 billion increased 7 percent versus $2.4 billion in the 2013 third quarter.
Net earnings for the quarter increased 9 percent to $230 million versus $211 million in 2013. Earnings per share of $3.30 increased 12 percent versus $2.95 in 2013.
"We were pleased with the overall performance of the business in the quarter," said chairman, president and chief executive officer Jim Ryan. "Strong volume growth and positive operating leverage in the U.S. business were the primary drivers of our results."
He added that the company was encouraged by better top-line growth in Canada this quarter, but margins remain under pressure due to currency and additional investments.
"Outside of North America, we were disappointed with the performance of several multichannel businesses and are committed to improving or exiting those operations." Ryan added, "We are very excited about the continued success of our single channel businesses in Japan and the United States, and we are evaluating and testing additional markets for expansion of this model."
Sales for the U.S. segment increased 7 percent in the 2014 third quarter versus the prior year. Results for the quarter included 2 percentage points from acquisitions, net of dispositions. Excluding acquisitions, organic sales increased 5 percent driven by 6 percentage points from volume, partially offset by 1 percentage point from lower sales of seasonal products. Sales growth to customers in the Heavy and Light Manufacturing, Commercial, Retail and Natural Resources customer end markets contributed to the sales increase.
Sales in the 2014 third quarter in Canada increased 3 percent versus the prior year, 8 percent in local currency. The 8 percent increase in local currency consisted of 5 percentage points from volume, 2 percentage points from acquisitions and 1 percentage point from price. The sales increase for the quarter was led by solid growth to customers in the Commercial, Transportation, Oil and Gas, Government, and Heavy and Light Manufacturing end markets.
Sales for the Other Businesses segment increased 16 percent for the 2014 third quarter versus the prior year. This performance consisted of 18 percentage points of growth from volume and price, partially offset by a 2 percentage points decline from unfavorable foreign exchange. The sales increase was primarily driven by the single channel businesses, MonotaRO in Japan and Zoro in the United States, and from the business in Mexico.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
