Grainger reports record sales
Grainger reported record sales of $8.1 billion for 2011, a 12 percent increase compared to 2010.
Net earnings of $658 million increased 29 percent versus $511 million in 2010. Earnings per share of $9.07 increased 31 percent versus $6.93 in 2010.
For the fourth quarter, the company reported sales of $2.1 billion, an increase of 14 percent versus $1.8 billion in the 2010 quarter. Net earnings for the quarter of $148 million increased 12 percent versus $132 million in 2010.
"We continue to see a long runway for growth and are investing aggressively in our proven growth drivers: product line expansion, sales force expansion, eCommerce, inventory services and international expansion," said said chairman, president and CEO Jim Ryan.
In 2011, Grainger introduced more than 80,000 new products, transacted more than $2 billion in sales through eCommerce and added more than 1,300 net new jobs, while delivering a total shareholder return of 38 percent.
In November, the company announced its plan to close 25 branches in the United States during the 2011 fourth quarter and incur a charge of approximately $14 to $18 million. In total, Grainger closed 27 branches, at a cost of $18 million.
Sales for the United States segment increased 8 percent in the 2011 fourth quarter versus the prior year. The growth was driven primarily by 8 percent volume growth and 3 percentage points from price, partially offset by a 2 percentage point drag from the 2010 oil spill sales and 1 percentage point from lower sales of seasonal products due to the unusually warm weather in the 2011 fourth quarter.
Fourth quarter sales for Acklands-Grainger increased 13 percent, 14 percent in local currency. Strong volume growth during the quarter contributed 13 percentage points to the sales increase, while acquisitions completed during the last 12 months contributed 1 additional percentage point, partially offset by 1 percentage point from the negative impact of foreign exchange.
Sales for the other businesses, which includes operations in Europe, Japan, Mexico, India, Colombia, China, Puerto Rico, Panama and the Dominican Republic, increased 95 percent for the 2011 fourth quarter versus the prior year. This increase was primarily due to the incremental sales from the business in Europe (Fabory) acquired on August 31, combined with strong revenue growth in Japan and Mexico.
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.
