Chicago-based Grainger (NYSE: GWW), No. 3 on MDM's list of the Top 40 industrial distributors, reported second-quarter 2011 sales of $2 billion, up 12 percent from the second quarter 2010.

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Profit for the quarter increased 32 percent to $170 million.

"Our focus on delivering great service to customers through a broader product offering, an expanding sales force and a growing international platform, continues to generate strong sales and earnings performance," said President and CEO Jim Ryan.

The 12 percent sales growth for the second quarter consisted of 8 percent volume growth while price contributed 2 percentage points. Foreign exchange contributed 2 percentage points and acquisitions contributed 1 percentage point to the daily increase. On a daily basis, sales increased 14 percent in April, 11 percent in May and 12 percent in June.

The company has two reportable business segments, the U.S. and Canada, which represent approximately 94 percent of company sales. The remaining operating units (Japan, Mexico, India, Puerto Rico, China, Colombia and Panama) are included in Other Businesses and are not considered a reportable segment.

Sales for the U.S. segment increased 9 percent in the 2011 second quarter, driven by a 7 percentage point contribution from volume and 3 percentage points from price, partially offset by a 1 percentage point drag due to sales in 2010 related to the oil spill that do not repeat. Daily sales increased 10 percent in April, 8 percent in May and 8 percent in June.

Sales to all customer end-markets were up in the quarter, led by heavy manufacturing, which increased in the mid-teens.

Sales for the Acklands-Grainger Canadian business in the quarter increased 24 percent in U.S. dollars versus the 2010 second quarter. In local currency, daily sales increased 16 percent for the quarter, driven by 12 percentage points from volume, 3 percentage points from acquisitions and 1 percentage point from price. Daily sales increased 16 percent in April, 15 percent in May and 17 percent in June in local currency.

Sales in Canada benefited from strength in the oil and gas, heavy manufacturing, retail/wholesale, and agriculture and mining customer end-markets.

Sales for the Other Businesses, which include Japan, Mexico, India, Puerto Rico, China, Colombia and Panama, increased 49 percent versus prior year, due primarily to strong growth in Japan and Mexico, along with the business in Colombia, which was acquired in June 2010. Colombia's sales were first recognized in July 2010. Although smaller in size, the remaining businesses also posted strong sales growth in the quarter.

For the six months ended June 30, 2011, sales of $3.9 billion were up 12 percent versus the six months ended June 30, 2010. Profit was up 44 percent to $328 million.