Grainger Posts Record 3Q, Raises Earnings Guidance

The giant distributor reported $2.1 billion in sales for the quarter, 11 percent better than a year earlier. Heavy manufacturing led U.S. sales 7 percent higher.

With $2.1 billion in third-quarter 2011 sales and $182 million in net earnings, Grainger posted excellent results Oct. 18 and saw its stock price jump by more than 8 percent as of midday. Jim Ryan, the company’s chairman, president, and CEO, called it "an exceptional quarter for Grainger" as he announced the company is raising its sales growth and earnings guidance for the full year.

While overall 3Q sales rose by 11 percent from a year earlier, the growth rate for U.S. sales was 7 percent, with heavy manufacturing leading all customer end markets and growing by the mid-teens, according to the company’s announcement.

"We saw consistent, double-digit sales growth each month of the quarter and delivered strong earnings growth and cash flow," Ryan said. "Grainger's ability to help customers do more with less has been key to our success. Our growth drivers such as product line expansion, eCommerce, inventory management services and sales force expansion are paying off and helping us gain share. Given our strong performance to date, we are aggressively investing in these proven growth drivers to help meet customers' needs, create competitive advantage, and grow the business.

"Given our strong operating performance to date, and the inclusion of Fabory starting in September, we have raised our 2011 sales growth guidance to a range of 11 to 12 percent and increased our expected earnings per share guidance to a range of $8.80 to $9.00."

Grainger's news release said the earnings guidance excludes the expected $5 million after-tax gain from the sale of its minority ownership position in MRO Korea, which was announced Oct. 11, 2011. The company's previous guidance, effective July 19, 2011, projected sales growth of 9-10 percent and EPS in the range of $8.40 to $8.70.

Download Center

HTML - No Current Item Deck
  • Safety Management Software - Free Demo

    IndustrySafe Safety Software’s comprehensive suite of modules help organizations to record and manage incidents, inspections, hazards, behavior based safety observations, and much more. Improve safety with an easy to use tool for tracking, notifying and reporting on key safety data.

  • Create Flexible Safety Dashboards

    IndustrySafe’s Dashboard Module allows organizations allows you to easily create and view safety KPIs to help you make informed business decisions. Our best of breed default indicators can also save you valuable time and effort in monitoring safety metrics.

  • Schedule and Record Observations

    IndustrySafe's Observations module allows managers, supervisors, and employees to conduct observations on employees involved in safety critical behavior. IndustrySafe’s pre-built BBS checklists may be used as is, or can be customized to better suit the needs of your organization.

  • Why Is Near Miss Reporting Important?

    A near miss is an accident that's waiting to happen. Learn how to investigate these close calls and prevent more serious incidents from occurring in the future.

  • Get the Ultimate Guide to Safety Training

    When it comes to safety training, no matter the industry, there are always questions regarding requirements and certifications. We’ve put together a guide on key safety training topics, requirements for certifications, and answers to common FAQs.

  • Industry Safe
comments powered by Disqus

OH&S Digital Edition

  • OHS Magazine Digital Edition - May 2019

    May 2019

    Featuring:

    • RESPIRATORY PROTECTION
      Why Pick a PAPR? 
    • FIRE SAFETY TRAINING
      Fire Safety: Plan, Prevent, Train, Recover
    • PROTECTIVE APPAREL
      The Truth About Heat Stress and FRC
    • AIHCE EXP 2019 PREVIEW
      Underestimated No More
    View This Issue