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Fastener distributor Wurth Service Supply, Indianapolis, IN, named Bill Holden general manager of the Indianapolis operations. Holden has been in the industrial distribution industry for more than 20 years. He was president and COO of Haggard and Stocking prior to joining Service Supply. The company announced several other management changes for Service Supply, one of seven U.S. business units of the German-based global fastener distributor.
Industrial Distribution Group, Inc., Atlanta, GA, reported first quarter 2004 revenues of $126.1 million, up 2.5% compared to the $123.1 million reported for the first quarter of 2003. The company reported net income for the quarter ended Mar. 31, 2004 of $1.1 million compared to net income of $0.3 million for the first quarter of 2003. Total Flexible Procurement Solution revenues, including storeroom management services, were $67.7 million for the first quarter and represent a 7.5% increase over the $63.0 million reported for the first quarter of the prior year. Such FPS revenues were 53.6% of total revenues for the first quarter 2004, compared to 51.1% of total revenues for the comparable period of 2003.
W.W. Grainger, Chicago, IL, plans to add three new markets to the expansion program it started last fall: Houston, St. Louis and Tampa. Over the next year, Grainger expects to add $10 million in inventory and 200,000 square feet in space in these three markets. ﾑ'We're targeting a comprehensive package of better sales coverage, local marketing, more inventory and improved service in a market by market march across the country,'' said CEO Dick Keyser. ﾑ'We're showing our customers that Grainger is their local supplier.'' (See MDM Mar. 25 issue for more details on expansion plans).
Grainger reported sales were $1.2 billion for the first quarter ended Mar. 31, up 8% over the prior year's first quarter. Net earnings were up 19% to $62.6 million. The 2004 quarter had one additional selling day. Operating earnings for the quarter were up 17%, a result of increased sales, improved gross margins, and proportionately lower operating expenses. Operating expenses included two programs, market expansion and accelerating the SAP installation. Expenses for both are expected to ramp up in subsequent quarters. Sales in the Branch-based Distribution segment increased by 7% in the 2004 first quarter. Sales in the United States were up 6%; sales to government accounts rose 9%, national accounts grew 7% and all other customer accounts were up 5%. Sales processed through grainger.com increased 25% to $143 million from $115 million in 2003.
Genuine Parts Company, Atlanta, GA, reported sales for the first quarter ended Mar. 31 of $2.2 billion were up 9% compared to the first quarter of 2003. Net income for the quarter was $100.2 million, an increase of 13% over $88.4