Grainger '14 sales up 6 percent
Grainger reported 2014 sales of $10.0 billion, an increase of 6 percent compared to $9.4 billion in 2013.
Reported net earnings of $802 million, or $11.45 per share, increased 1 percent versus $797 million, or $11.13, in 2013.
"This was a challenging year, and we were not satisfied with our overall 2014 performance. As we committed to a year ago, we addressed several smaller underperforming businesses and believe we have positioned the company for better results going forward," said chairman, president and chief executive officer Jim Ryan.
Ryan added that there were several bright spots in 2014, including the United States segment, which continued to gain share with large customers. "We were also pleased with the single channel online model businesses in Japan, the United States and Europe, which continued their rapid growth."
Ryan concluded, "In the near term, we remain cautious given the low inflationary environment in the United States, economic headwinds internationally and growing pressure from weaker currencies in Canada and Japan."
The company updated its 2015 guidance and now expects growth of 3 to 7 percent. Previous guidance anticipated growth of 5 to 9 percent. The change reflects the current foreign currency translation effect on reported financial results due to the further weakening of the Canadian and Japanese currencies since the company first issued guidance for 2015, as well as the deteriorating macroeconomic environment in Canada.
2014 Fourth Quarter
Sales for the 2014 fourth quarter increased 6 percent to $2.5 billion versus $2.4 billion in 2013. Reported net earnings of $149 million declined 5 percent versus $157 million in 2013. Earnings were impacted by charges related to the shutdown of the business in Brazil, the plan to improve the long-term performance of Fabory in Europe, and goodwill impairment charges related to the business in Colombia.
Sales in the United States increased 6 percent in the quarter versus the prior year. The growth was driven by 6 percentage points from volume, 1 percentage point from price and 1 percentage point from sales of Ebola related safety products.
Strong sales growth to customers in the natural resources, commercial and manufacturing customer end markets contributed to the sales increase in the quarter.
Sales in the quarter at Acklands-Grainger increased 3 percent in U.S. dollars, 11 percent in local currency. The 11 percent sales increase consisted of 7 percentage points from the acquisition of WFS Enterprises, and 4 percentage points increase from volume. The 4 percent volume growth in Canada was led by higher sales to customers in the government and utilities end markets.
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.
