Grainger sales up 16 percent
Grainger said its second quarter sales of $1.8 billion increased 16 percent compared to the same period last year.
Net earnings for the quarter were up 40 percent to $129 million versus $92 million in 2009. Earnings per share increased 43 percent to $1.73 versus $1.21 for the second quarter of 2009.
"We are very encouraged by the strong organic growth in the quarter and the resulting earnings power demonstrated by our business," said chairman, president and chief executive officer Jim Ryan. "Performance this quarter was the result of a complete team effort. Our businesses in the United States and Canada, along with the majority of our international operations, contributed to a solid quarter for both sales and earnings."
Sales in the U.S. increased 11 percent, 9 percent excluding acquisitions. Sales of products used for the oil spill clean up contributed approximately 1 percentage point to growth in the quarter. All customer end markets within the United States posted sales growth versus the 2009 second quarter with the exception of the contractor and government sectors, which were down slightly. Growth was led by the heavy manufacturing sector, which was up more than 20 percent versus the prior year.
The Lab Safety Supply / Grainger Industrial Supply integration also contributed to segment performance.
Operating earnings for the United States segment increased 31 percent.
In Canada, sales for the Acklands-Grainger business in the quarter were up 29 percent in U.S. dollars versus the 2009 second quarter. In local currency, sales were up 14 percent. The increase was led by strong growth to customers in the agriculture and mining, oil and gas, heavy manufacturing and forestry sectors of the economy, partially offset by a decline in sales to the government.
Operating earnings in Canada increased 30 percent in the quarter; up 16 percent in local currency.
Sales for the other businesses, which include Japan, Mexico, India, Puerto Rico, China and Panama, increased 226 percent in the quarter versus prior year, due primarily to incremental sales from the acquired businesses in Japan and India, along with strong growth in Mexico, China and Puerto Rico.
Operating earnings for the other businesses were $2 million for the second quarter 2010 compared to a $3 million loss a year ago. In addition to the earnings contribution from Japan, the business in Mexico returned to profitability and the business in China reduced its loss versus the prior year.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
