W.W. Grainger Inc.'s (GWW) second-quarter earnings fell 18% as the industrial-supplies company continued to see weak sales, but results topped analysts' expectations.
Last quarter, Chairman and Chief Executive Jim Ryan said the company hadn't seen a bottom to the sales decline. He echoed the thought Wednesday, saying the company hadn't seen an indication of an economic turnaround, but added its results indicate Grainger is gaining market share during the recession. Ryan added that although the economy remains a challenge, the company was pleased with the quarter's results and was investing for growth.
The company posted income of $92.5 million, or $1.21 a share, down from $113.2 million, or $1.42 a share, a year earlier. Revenue decreased 13% to $1.53 billion. Analysts polled by Thomson Reuters expected earnings of $1.14 and revenue of $1.52 billion. Gross margin rose to 40.8% from 40.2% despite volume falling 19%. Ryan said, "We continue to focus on the things we can control." Grainger, which sells an array of products including lighting, motors and cleaning materials, is seen as a bellwether for the U.S. economy because of its breadth of products.
Shares closed Tuesday at $82.58 and haven't traded premarket.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; kerry.benn@dowjones.com
Monday, July 20, 2009
Vulcan Materials presents supplier award
Susan Avery -- Purchasing, 7/15/2009 12:58:05 PM EDT
Vulcan Materials Co. has presented its Platinum Alliance supplier award to Applied Industrial Technologies for excellent service in 2008. The award is the highest that Vulcan presents to a supplier for meeting performance expectations.
Vulcan's procurement operation determines the recipient through an annual survey of its internal customers, the company's plant managers. More than 135 plant managers and leaders from Vulcan's nine divisions rate suppliers on key operations criteria that include product quality, customer service, technical support, ease of doing business and overall value added.
"Our success is dependent on relationships with quality vendors, such as Applied, and we sincerely value their dedicated service," said Pete Roberts, director of procurement at Vulcan in Birmingham, Ala.
Good customer service is one of the more important traits buyers seek in a distributor supplier, say purchasing professionals responding to a recent Purchasing survey.
Applied achieved Gold Alliance supplier award status in 2007 and 2006. In total, Applied has received a Bronze, Silver, Gold or Platinum Alliance award from Vulcan every year since 2000
Vulcan Materials Co. has presented its Platinum Alliance supplier award to Applied Industrial Technologies for excellent service in 2008. The award is the highest that Vulcan presents to a supplier for meeting performance expectations.
Vulcan's procurement operation determines the recipient through an annual survey of its internal customers, the company's plant managers. More than 135 plant managers and leaders from Vulcan's nine divisions rate suppliers on key operations criteria that include product quality, customer service, technical support, ease of doing business and overall value added.
"Our success is dependent on relationships with quality vendors, such as Applied, and we sincerely value their dedicated service," said Pete Roberts, director of procurement at Vulcan in Birmingham, Ala.
Good customer service is one of the more important traits buyers seek in a distributor supplier, say purchasing professionals responding to a recent Purchasing survey.
Applied achieved Gold Alliance supplier award status in 2007 and 2006. In total, Applied has received a Bronze, Silver, Gold or Platinum Alliance award from Vulcan every year since 2000
Tuesday, July 14, 2009
HD Supply expands mid-Atlantic service
Distributor's Facilities Maintenance group opens distribution center in Hanover, Maryland
Industrial Distribution Staff -- Industrial Distribution, 7/9/2009 3:47:28 PM EDT
HD Supply Facilities Maintenance announced Thursday the opening of a new distribution center in Hanover, Maryland.
The new facility expands next-day inventory availability for the mid-Atlantic region and offers a greater variety of the 20,000 MRO products featured in the current HD Supply Facilities Maintenance catalog, according to a company statement.
The Baltimore-area distribution center follows the recent opening of the company's Phoenix, Arizona, distribution center.
Industrial Distribution Staff -- Industrial Distribution, 7/9/2009 3:47:28 PM EDT
HD Supply Facilities Maintenance announced Thursday the opening of a new distribution center in Hanover, Maryland.
The new facility expands next-day inventory availability for the mid-Atlantic region and offers a greater variety of the 20,000 MRO products featured in the current HD Supply Facilities Maintenance catalog, according to a company statement.
The Baltimore-area distribution center follows the recent opening of the company's Phoenix, Arizona, distribution center.
Fastenal's Q2 sales drop 21 percent
Fastener distributor cites continued weakness in its industrial production and non-residential construction businesses
Victoria Fraza Kickham -- Industrial Distribution, 7/14/2009 11:18:16 AM EDT
Winona, Minn.-based fastener and general-line MRO distributor Fastenal posted a 21.4 percent drop in sales and a nearly 43 percent drop in earnings in the second quarter ended June 30. The distributor said the ongoing weak economy continues to negatively affect sales, particularly in its industrial production business and, more recently, in its non-residential construction business.
Fastenal's sales for the quarter were $474.9 million compared with $604.2 million in the second quarter of 2008. Net earnings were $43.5 million compared with $76.2 million in the second quarter of 2008.
Sales for the six months ended June 30 were down 17.6 percent to $964.2 million compared with $1.2 billion in the first six months of 2008. Net earnings fell 36 percent to $92.2 million compared with $144.3 million in the first half of 2008.
The distributor said its manufacturing business continues to suffer, though more so on the industrial production side-in which Fastenal sells products that become part of a customer's finished product-than on the maintenance side. Its manufacturing business contracted 28 percent in the second quarter while its non-residential construction business declined roughly 23 percent. Fastenal's remaining business-to resellers, government and its store-based retail business-is producing better results, the company said.
Fastenal opened 42 new stores in the first six months of this year, a nearly 2 percent increase since the end of 2008. The distributor slowed its new-store opening rate to 2 percent to 5 percent for 2009, but expects to resume its normal 7 percent to 10 percent store opening rate starting in January. The company has also stopped adding personnel, except for new store openings and for stores that our growing. In all, Fastenal says it has 8.5 percent fewer employees than it did at the end of December and 4.6 percent fewer employees than it did a year ago.
Victoria Fraza Kickham -- Industrial Distribution, 7/14/2009 11:18:16 AM EDT
Winona, Minn.-based fastener and general-line MRO distributor Fastenal posted a 21.4 percent drop in sales and a nearly 43 percent drop in earnings in the second quarter ended June 30. The distributor said the ongoing weak economy continues to negatively affect sales, particularly in its industrial production business and, more recently, in its non-residential construction business.
Fastenal's sales for the quarter were $474.9 million compared with $604.2 million in the second quarter of 2008. Net earnings were $43.5 million compared with $76.2 million in the second quarter of 2008.
Sales for the six months ended June 30 were down 17.6 percent to $964.2 million compared with $1.2 billion in the first six months of 2008. Net earnings fell 36 percent to $92.2 million compared with $144.3 million in the first half of 2008.
The distributor said its manufacturing business continues to suffer, though more so on the industrial production side-in which Fastenal sells products that become part of a customer's finished product-than on the maintenance side. Its manufacturing business contracted 28 percent in the second quarter while its non-residential construction business declined roughly 23 percent. Fastenal's remaining business-to resellers, government and its store-based retail business-is producing better results, the company said.
Fastenal opened 42 new stores in the first six months of this year, a nearly 2 percent increase since the end of 2008. The distributor slowed its new-store opening rate to 2 percent to 5 percent for 2009, but expects to resume its normal 7 percent to 10 percent store opening rate starting in January. The company has also stopped adding personnel, except for new store openings and for stores that our growing. In all, Fastenal says it has 8.5 percent fewer employees than it did at the end of December and 4.6 percent fewer employees than it did a year ago.
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