related to the strong performance for the year. Operating earnings for the quarter were down 2 percent.
Integrated Supply Daily sales for Integrated Supply were down 5 percent for the quarter due to the continued effect of disengagements of two large customers late in 2003, as well as lower sales to two large, existing customers. The segment had an operating loss of $1 million in the quarter as compared to earnings of $0.5 million in the same period in 2003. As announced late last year, in 2005 Grainger will no longer offer on-site integrated purchasing and tool crib management services. Grainger's Industrial Supply division intends to offer customers an expanded menu of on-site services. The company plans to fulfill but not renew existing Integrated Supply contracts. Beginning January 1, 2005, Integrated Supply will no longer be reported as a separate segment. The business will be merged into Grainger's Industrial Supply division within the Branch-based segment.
Cash Flow Operating cash flow was $405 million for the year. Capital expenditures were $161 million for the year compared to $80 million in 2003, as investments in the market expansion program, the SAP implementation, the telephony upgrade and Canadian branch and systems projects accelerated in the fourth quarter. Keyser concluded, "In 2005, we plan to expand into additional markets with improved presence, better product availability and increased sales coverage."