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Chicago-based Grainger (NYSE: GWW), No. 2 on MDM’s list of the top 40 industrial distributors, reported sales for the second quarter of $2.4 billion, an increase of 6 percent versus the second quarter of 2012.
The sales increase consisted of 4 percentage points from volume, 2 percentage points from price and 1 percentage point from acquisitions, partially offset by a 1 percentage point decline attributable to unfavorable foreign exchange. Second-quarter profit increased 14 percent to
Sales for Grainger’s U.S. and Canada business segments, which represented 89 percent of total second-quarter sales, increased by 7 percent and 3 percent, respectively, compared to the prior-year period.
Sales growth in the U.S. was driven by 4 percentage points from volume, 2 percentage points from price and 1 percentage point from acquisitions; solid growth in the light and heavy manufacturing, natural resources, commercial and contractor end markets contributed to the increase.
In Canada, sales growth consisted of 2 percentage points from volume, 2 percentage points from favorable timing of the Easter holiday and 1 percentage point from sales of flood-related products, partially offset by a 2 percentage point decline from unfavorable foreign exchange; the increase was led by solid growth to customers in the construction, forestry and light manufacturing end markets.
Sales for operations in Asia, Europe and Latin America increased 5 percent for the second quarter versus the prior year. The growth consisted of 9 percentage points from volume and price and 2 percentage points from acquisitions, partially offset by a 6 percentage point decline from unfavorable foreign exchange; strong revenue growth in Mexico and the timing of the Brazil acquisition in the second quarter drove the increase.
For the first six months, sales for Grainger were $4.7 billion, an increase of 5 percent versus the first six months of 2012. Profit increased 14 percent to $429 million.