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.
Monday, June 15, 2009
Applied Industrial Technologies partners with ORS Nasco
MRO distributor extends scope to industrial supplies
By Susan Avery -- Purchasing, 6/10/2009 9:02:00 AM
Applied Industrial Technologies has entered into a new strategic partnership with ORS Nasco, a wholesaler of tools, safety products, general industrial items and welding supplies. ORS Nasco, a single-source wholesaler, sells exclusively to distributors of safety, welding, construction, oilfield/pipeline and industrial supplies.The partnership expands Applied’s offering of maintenance supplies in areas such as tools and safety with such brands as Rubbermaid, CM Hoists, UnionTool and Maglite. The offering also extends into new product areas such as welding and oilfield/pipeline supplies. In all, the partnership adds more than 80,000 items to Applied’s product basket.In addition, the partnership provides Applied with one-day and two-day delivery on 99% of ORS Nasco inventory. Coordinating efficiencies of ORS Nasco’s eight strategically located U.S. distribution centers with Applied’s logistical infrastructure makes possible these quick delivery times.In an effort to consolidate spending with suppliers and keep costs in line, MRO buyers continue to look to industrial distributors to provide an increasing number of goods and services. Results of a recent Purchasing survey, in fact, show 35% of respondents buying more through distribution today than five years ago. MRO stands for maintenance, repair and operations.“ORS Nasco gives us immediate access to the types of products that many customers have been requesting—general industrial items that round out our product offering and make Applied truly a one-stop shop for industrial purchasing,” says Jeff Ramras, vice president—supply chain management, at Applied in Cleveland, Ohio.With $2.1 billion in annual sales, Applied Industrial Technologies places in the 10th spot on Industrial Distribution magazine’s Big 50 list of industrial distributors for 2009.
Friday, June 12, 2009
Grainger acquires Asia Pacific Brands
Broad-line distributor W.W. Grainger today announced it has signed a definitive agreement to acquire full ownership of Asia Pacific Brands
Jack Keough -- Industrial Distribution, 6/5/2009 1:09:52 PM
Broad-line distributor W.W. Grainger today announced it has signed a definitive agreement to acquire full ownership of its joint venture in India, Asia Pacific Brands India Private Limited, one of India's leading industrial and electrical wholesale distributors.
"We are excited about growing our business in India," said Grainger's chairman and chief executive officer Jim Ryan. "As that economy gets more competitive, Indian companies want efficient and reliable ways to get the quality products they need to keep their facilities running and their employees safe. With annual revenues of approximately $30 million, Asia Pacific will provide us a starting position in a large, high-potential MRO market."
Grainger will contribute an estimated $1.2 million to gain full ownership. Late last year, the company wrote down its investment due to the bankruptcy filing of Asia Pacific's largest supplier.
"Over the past six months, we have helped streamline Asia Pacific's operations, strengthen its management and enhance its supplier base. We will continue to make prudent investments in the business to deepen our presence in India's growing economy," said Bonnie McIntyre, vice president for Grainger's International Market Development. With more than 20 locations and more than 4,000 dealer relationships across India, Asia Pacific Brands plans to go to market under the Grainger brand.
Jack Keough -- Industrial Distribution, 6/5/2009 1:09:52 PM
Broad-line distributor W.W. Grainger today announced it has signed a definitive agreement to acquire full ownership of its joint venture in India, Asia Pacific Brands India Private Limited, one of India's leading industrial and electrical wholesale distributors.
"We are excited about growing our business in India," said Grainger's chairman and chief executive officer Jim Ryan. "As that economy gets more competitive, Indian companies want efficient and reliable ways to get the quality products they need to keep their facilities running and their employees safe. With annual revenues of approximately $30 million, Asia Pacific will provide us a starting position in a large, high-potential MRO market."
Grainger will contribute an estimated $1.2 million to gain full ownership. Late last year, the company wrote down its investment due to the bankruptcy filing of Asia Pacific's largest supplier.
"Over the past six months, we have helped streamline Asia Pacific's operations, strengthen its management and enhance its supplier base. We will continue to make prudent investments in the business to deepen our presence in India's growing economy," said Bonnie McIntyre, vice president for Grainger's International Market Development. With more than 20 locations and more than 4,000 dealer relationships across India, Asia Pacific Brands plans to go to market under the Grainger brand.
Grainger sales drop 10 percent in May
Grainger's May 2009 sales dropped 10 percent versus May 2008
Victoria Fraza Kickham -- Industrial Distribution, 6/8/2009 1:14:01 PM
Grainger reported today that its May 2009 sales for the United States versus last May dropped 10 percent, largely due to weak demand across all customer end-markets and geographies. Foreign exchange negatively affected sales by about two percentage points.
Sales from pandemic related products as a result of the H1N1 virus outbreak positively affected sales by one percentage point.
Sales in Canada during May dropped 14 percent compared to May 2008. One percent of that drop was reflected in local currency. Grainger's other businesses dropped 17 percent.
Victoria Fraza Kickham -- Industrial Distribution, 6/8/2009 1:14:01 PM
Grainger reported today that its May 2009 sales for the United States versus last May dropped 10 percent, largely due to weak demand across all customer end-markets and geographies. Foreign exchange negatively affected sales by about two percentage points.
Sales from pandemic related products as a result of the H1N1 virus outbreak positively affected sales by one percentage point.
Sales in Canada during May dropped 14 percent compared to May 2008. One percent of that drop was reflected in local currency. Grainger's other businesses dropped 17 percent.
The DoAll company gains metalworking customer base
Jack Keough -- Industrial Distribution, 6/10/2009 2:49:26 PM
DGI Supply, a DoAll company, has signed an affiliation agreement with Tool Crib Supply, Bensenville, Ill., allowing DGI to hire all of Tool Crib's employees and take over its metalworking customer base.
DGI Supply plans to combine its inventory with Tool Crib Supply's, while moving all order fulfillment to its Wheeling, Ill. location.
"The combined inventory will improve service levels and with DGI's automated warehousing systems improve efficiency while reducing errors," said Bill Henricks, COO of DoAll.
With 55 locations, DGI Supply ranked 26th on Industrial Distribution's 2009 Big 50 distributors list.
DGI Supply, a DoAll company, has signed an affiliation agreement with Tool Crib Supply, Bensenville, Ill., allowing DGI to hire all of Tool Crib's employees and take over its metalworking customer base.
DGI Supply plans to combine its inventory with Tool Crib Supply's, while moving all order fulfillment to its Wheeling, Ill. location.
"The combined inventory will improve service levels and with DGI's automated warehousing systems improve efficiency while reducing errors," said Bill Henricks, COO of DoAll.
With 55 locations, DGI Supply ranked 26th on Industrial Distribution's 2009 Big 50 distributors list.
Monday, June 1, 2009
Industrial Distribution Magazines Top 50 Distributors
Jack Keough and Industrial Distributions Mag hits it again with their great update on the Top 50 distributors. Check out Keoughs Korner as well.
Wednesday, May 27, 2009
Grainger 2009 Fact Book for Investors Now Posted Online
The 2009 Fact Book is now available online at http://www.grainger.com/investor. This "book" has been published for a number of years and is produced annually to share key facts and highlights; it provides a greater understanding of Grainger's business and investment profile.
Friday, May 22, 2009
Airgas raises quarterly dividend by 13 percent
RADNOR, Pa. - Industrial gas maker Airgas Inc. on Tuesday said it raised its quarterly cash dividend by 13 percent to 18 cents per share from 16 cents per share.
The dividend is payable June 30 to shareholders of record as of June 15.
"This dividend increase is a way to reward our shareholders in a tough environment," Chairman and Chief Executive Peter McCausland said in a statement.
Shares rose 41 cents to close at $43.06.
The dividend is payable June 30 to shareholders of record as of June 15.
"This dividend increase is a way to reward our shareholders in a tough environment," Chairman and Chief Executive Peter McCausland said in a statement.
Shares rose 41 cents to close at $43.06.
Wednesday, May 20, 2009
Motion Industries Acquires General Tool and Supply
Motion Industries has acquired General Tool and Supply, a regional industrial supplies distributor, headquartered in Portland, Oregon and its subsidiary Industrial Tool and Supply headquartered in Tucson, Arizona.
Jack Keough -- Industrial Distribution, 5/7/2009 2:31:33 PM
Motion Industries has acquired General Tool and Supply, a regional industrial supplies distributor, headquartered in Portland, Oregon and its subsidiary Industrial Tool and Supply headquartered in Tucson, Arizona. General Tool and Supply Company has four locations in Oregon, Washington, and Idaho; and Industrial Tool and Supply has two locations in Arizona.
Bill Derville, President; Jim Miller, Executive Vice President Sales and Marketing; and Rick Parlett, President Industrial Tool and Supply will remain as the leadership team and continue to manage the business as General Tool and Supply and Industrial Tool and Supply.
General Tool stocks in excess of 35,000 items of hand tools, power tools, precision tools, cutting tools, electronics tools and supplies, construction tools, abrasives, hoists, safety supplies, chemicals, and janitorial supplies. General Tool and Supply was recognized as one of the 5,000 fastest growing companies in America by Inc. Magazine in 2008. They distribute products from over 500 manufacturers.
General Tool and Supply's customers include aerospace, pulp and paper mills, general manufacturing plants, machine shops, foundries, electronic manufacturers, steel mills, construction companies, and government agencies. Industrial Tool and Supply customers include copper mines, general manufacturing, machine shops, contractors, and electronic manufacturers.
With 2008 sales of $3.5 billion, Motion Industries is a leading industrial parts distributor of bearings, mechanical power transmission, electrical automation, hydraulic and industrial hose, hydraulic and pneumatic components, industrial supplies, and material handling. Motion Industries has more than 500 operations including eight distribution centers throughout North America and serves more than 100,000 customers from the chemical, food and beverage, wood and lumber, iron and steel, pulp and paper, mining and aggregate, petrochemical, automotive and pharmaceutical industries.
Motion Industries is a wholly owned subsidiary of Genuine Parts Company (NYSE:GPC)..
Jack Keough -- Industrial Distribution, 5/7/2009 2:31:33 PM
Motion Industries has acquired General Tool and Supply, a regional industrial supplies distributor, headquartered in Portland, Oregon and its subsidiary Industrial Tool and Supply headquartered in Tucson, Arizona. General Tool and Supply Company has four locations in Oregon, Washington, and Idaho; and Industrial Tool and Supply has two locations in Arizona.
Bill Derville, President; Jim Miller, Executive Vice President Sales and Marketing; and Rick Parlett, President Industrial Tool and Supply will remain as the leadership team and continue to manage the business as General Tool and Supply and Industrial Tool and Supply.
General Tool stocks in excess of 35,000 items of hand tools, power tools, precision tools, cutting tools, electronics tools and supplies, construction tools, abrasives, hoists, safety supplies, chemicals, and janitorial supplies. General Tool and Supply was recognized as one of the 5,000 fastest growing companies in America by Inc. Magazine in 2008. They distribute products from over 500 manufacturers.
General Tool and Supply's customers include aerospace, pulp and paper mills, general manufacturing plants, machine shops, foundries, electronic manufacturers, steel mills, construction companies, and government agencies. Industrial Tool and Supply customers include copper mines, general manufacturing, machine shops, contractors, and electronic manufacturers.
With 2008 sales of $3.5 billion, Motion Industries is a leading industrial parts distributor of bearings, mechanical power transmission, electrical automation, hydraulic and industrial hose, hydraulic and pneumatic components, industrial supplies, and material handling. Motion Industries has more than 500 operations including eight distribution centers throughout North America and serves more than 100,000 customers from the chemical, food and beverage, wood and lumber, iron and steel, pulp and paper, mining and aggregate, petrochemical, automotive and pharmaceutical industries.
Motion Industries is a wholly owned subsidiary of Genuine Parts Company (NYSE:GPC)..
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