Grainger (NYSE: GWW), Chicago, IL, reported sales for the second quarter of $2.6 billion, a 2 percent increase over the same period a year ago. Profit decreased 22 percent to $173 million.
For the first half of the year, sales were $5.1 billion, up 2 percent from the same period one year ago. Profit decreased 17 percent to $359 billion.
"Grainger and our industry remain challenged by the difficult industrial environment," said President and CEO Jim Ryan. "A bright spot for the quarter was the continued strong performance of our single channel online businesses, which posted topline growth of 34 percent.”
Excluding acquisitions, organic sales decreased 2 percent driven by a 1 percentage point decrease in volume and a 1 percentage point reduction in price.
U.S. segment sales were down 3 percent year-over-year driven by a 2 percentage point decrease in volume and a 2 percentage point decline in price, partially offset by a 1 percentage point contribution from increased sales to Zoro, the single channel online business in the United States. Retail and Government customers posted the strongest sales growth in the quarter.
Canada sales were down 19 percent (16 percent in local currency). The 16 percent decline consisted of 14 percentage points from lower volume and 2 percentage points from the wildfires in Alberta. The business in Canada continued to be affected by a weak economic environment, resulting in lower sales to most customer end markets.
Other businesses segment sales increased 49 percent compared to the prior year, consisting of 31 percentage points from Cromwell, 17 percentage points from volume and price and a 1 percentage point benefit from foreign exchange. Strong organic performance for the other businesses was driven by 34 percent daily sales growth for the single channel online businesses, partially offset by lower sales in Latin America.
