Grainger sales up 5 percent
Grainger reported first quarter sales of $2.4 billion increased 5 percent versus $2.3 billion in the first quarter of 2013.
Net earnings for the quarter increased 2 percent to $217 million versus $212 million in 2013. Earnings per share of $3.07 increased 4 percent versus $2.94 in 2013.
"We are encouraged by the strong finish in March and our solid operating performance in a quarter that was marked by several disruptions from severe winter weather in January and February," said chairman, president and CEO Jim Ryan. "We are particularly encouraged by the performance of our U.S. business, which was driven by continued market share gains with large customers. The performance of our online businesses in Japan and the United States also continues to be strong. We are facing near-term economic and foreign exchange headwinds in Canada and are unhappy with the current performance. However, we will continue to invest in the Canadian infrastructure as we are very optimistic about the business over the long term."
United States
Sales for the United States segment increased 7 percent. Strong sales growth to customers in the heavy and light manufacturing, natural resources, retail and commercial customer end markets contributed to the sales increase in the quarter.
Operating earnings for the United States segment increased 7 percent in the quarter driven by the 7 percent sales growth and positive expense leverage, partially offset by lower gross profit margins.
Canada
First quarter 2014 sales for Acklands-Grainger decreased 10 percent in U.S. dollars and were down 2 percent in local currency. Growth during the quarter to customers in the utilities, forestry, transportation and reseller end markets was more than offset by declines in the construction, light and heavy manufacturing, mining, retail, government, and oil and gas customer end markets. Approximately two-thirds of revenue is generated in the western provinces with a concentration in natural resources. The business in Canada continues to be negatively affected by a weak macroeconomic environment, unfavorable currency exchange, lower commodity prices and a reduction of Canadian exports.
Operating earnings in Canada decreased 35 percent in the 2014 first quarter and were down 29 percent in local currency.
Other Businesses
Sales for the Other Businesses, which includes operations primarily in Asia, Europe and Latin America, increased 11 percent for the 2014 first quarter versus the prior year. Sales growth in the Other Businesses was driven by Zoro Tools and the businesses in Mexico and Japan. Strong sales growth in Japan was partially offset by the weakness in the Japanese yen versus the U.S. dollar.
Operating earnings for the Other Businesses were $8 million in the 2014 first quarter, flat versus the prior year.
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.
