Grainger annual sales up 11%
Grainger said its sales of $9.0 billion for 2012 increased 11 percent versus $8.1 billion in 2011.
Net earnings of $690 million increased 5 percent versus $658 million in 2011. Earnings per share of $9.52 increased 5 percent versus $9.07 in 2011.
"It was a record year for Grainger," said chairman, president and chief executive officer Jim Ryan. "Despite a slowing of business activity in the back half of the year, particularly in late December when uncertainty surrounding the economy and the fiscal cliff virtually paralyzed many businesses and government institutions, we achieved solid results while continuing to invest for future growth. For the full year, we invested an additional $70 million in expanding our product line and sales force, enhancing eCommerce capabilities, increasing inventory management services and expanding our international presence," Ryan added.
Sales for the 2012 fourth quarter of $2.2 billion increased 7 percent versus $2.1 billion in the 2011 fourth quarter. Net earnings of $156 million increased 5 percent versus $148 million in 2011. Fourth quarter earnings per share of $2.17 increased 6 percent versus $2.04 in 2011.
Sales in the United States segment increased 5 percent, 4 percent on a daily basis, in the 2012 fourth quarter versus the prior year.
Sales in the 2012 fourth quarter at Acklands-Grainger increased 14 percent, 13 percent on a daily basis.
Sales for the other businesses segment, which includes operations primarily in Asia, Europe and Latin America, increased 16 percent, 14 percent on a daily basis, for the 2012 fourth quarter versus the prior year.
In a statement accompanying its earnings report, the company singled out the following achievements for the year:
- eCommerce: Posted $2.7 billion in eCommerce sales, representing 30 percent of total company sales and an increase of 23 percent versus the prior year.
- Sales Force Expansion: Added 160 new sales representatives and contributed approximately 1 percentage point to company sales growth for the year.
- Inventory Management: Increased the number of U.S. customer KeepStock installations by 30 percent, ending the year at approximately 40,000 installations.
- Product Line Expansion: Added more than 80,000 new products to the Grainger U.S. catalog, bringing the total number of products in the 2012 printed catalog to more than 413,000.
- International: Surpassed $1 billion in sales in Canada and expanded the company's presence in Latin America by entering Brazil with the acquisition of AnFreixo.
INDUSTRIAL SUPPLY MAGAZINE
The November/December issue of Industrial Supply magazine features an in-depth cover story about Kimball Midwest. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Marks, as well as interviews with numerous product and distribution industry experts.
