Grainger (NYSE: GWW), Chicago, IL, reported sales for the second quarter of $2.5 billion, a 1 percent increase over the same period a year ago. Profit increased 7 percent to $221 million.
For the first half of the year, sales were $5 billion, up 1 percent from the same period one year ago. Profit increased 2 percent to $432 billion.
“While this continues to be a difficult economic environment, we are focusing on the things we can control," said President and CEO Jim Ryan. "Despite continued softness in sales and gross profit margins from a tough industrial economy, we continue to invest for the long term while driving significant productivity to fund growth and infrastructure investments and reduce overall margin pressure.”
Excluding acquisitions and foreign exchange, organic sales increased 3 percent driven by 4 percentage points from volume, partially offset by a 1 percentage point decline in price.
U.S. segment sales were up 2 percent year-over-yeardriven by 2 percentage points from volume and 1 percentage point from increased sales to Zoro, the single channel online business in the U.S., partially offset by a 1 percentage point decline in price. Sales growth to customers in the Commercial, Government, Light Manufacturing and Retail customer end markets contributed to the sales increase in the quarter.
Canada sales were down 9 percent, but up 2 percent in local currency. The 2 percent sales increase consisted of 8 percentage points from WFS Enterprises Inc. acquired on September 2, and 4 percentage points from price partially offset by a 10 percentage point decline in volume. AGI had lower sales to the Oil and Gas, Construction, Commercial, Retail, Heavy Manufacturing, Forestry and Transportation customer end markets, which were partially offset by growth to customers in the Light Manufacturing, Mining, Government and Utilities customer end markets.
Other businesses segment sales increased 7 percent compared to the prior year, consisting of 21 percentage points of growth from volume and price, partially offset by a 14 percentage points decline from foreign exchange. Local currency sales growth in the Other Businesses was driven by Zoro U.S., Japan and Mexico.