Jack Keough -- Industrial Distribution, 9/14/2009 7:48:44 AM EDT
W.W. Grainger says its August sales dropped 13 percent in August versus August, 2008 primarily the result of weak demand across all customer end-markets and geographies. Foreign exchange negatively affected sales by approximately 1 percentage point. There were the same number of selling days in August 2009 and August 2008 (21). The 2009 third quarter will have the same number of selling days (64) as the 2008 third quarter.
In the United States, sales decreased 14 percent while sales dropped eight percent in Canada. Grainger's other business grew 16 percent.
Wednesday, September 16, 2009
Tuesday, August 25, 2009
Grainger's Revamped Web Site
Lindsay Young Konzak
David Gordon and Allen Ray recently posted on their blog that Grainger will be launching its revamped Web site soon. (See blog at http://www.electricaltrends.com/.) They say that the site relaunch is focused on improved searching capabilities, new features to "enhance productivity," enhanced account information and easier catalog access.
The investment is a good one for Grainger given that the distributor's e-commerce channel is growing at twice the company's growth rate, according to its 2009 Fact Book posted at its Web site. The distributor presents these numbers:
E-commerce sales rose by 13% to $1.5 billion (in 2008). Sales in the e-commerce channel represented 24% of overall sales for Grainger's U.S. business, 7% for the Canadian business and 9% for Grainger's other businesses.
David Gordon and Allen Ray recently posted on their blog that Grainger will be launching its revamped Web site soon. (See blog at http://www.electricaltrends.com/.) They say that the site relaunch is focused on improved searching capabilities, new features to "enhance productivity," enhanced account information and easier catalog access.
The investment is a good one for Grainger given that the distributor's e-commerce channel is growing at twice the company's growth rate, according to its 2009 Fact Book posted at its Web site. The distributor presents these numbers:
E-commerce sales rose by 13% to $1.5 billion (in 2008). Sales in the e-commerce channel represented 24% of overall sales for Grainger's U.S. business, 7% for the Canadian business and 9% for Grainger's other businesses.
Wednesday, August 12, 2009
Wolseleys New Industrial Catalog
Jack Keough -- Industrial Distribution, 8/11/2009 1:19:37 PM EDT
Wolseley's Canadian Industrial Business Group has released its new industrial products catalog.
The 2009-10 catalog features more than 850 pages with products from more than 200 manufacturers. It also includes nearly 200 pages of fastener-related products.
"The catalog also includes an enhanced 41-page technical section that includes fastener specifications, safety PPE respiratory selection charts and adhesive bonding guides," said Doug Collins, Director of Sourcing and Marketing. "With each edition we continue to expand our offering featuring more up-to-date products from our preferred vendor partners. Also, the charts and specifications make this catalogue an important reference guide for our customers."
This 2009-10 catalog includes product lines for OEM/MRO including:
• Health & safety
• Hand tools
• Power tools
• Facility maintenance
• Material handling
• Cutting tools, tooling components and precision measuring
• Abrasives
• Welding
• Fasteners
To browse the catalog online, visit the Wolseley Industrial Products Group website. The French version of the catalog will be available shortly.
Wolseley Canada is a distributor of plumbing, heating, ventilation, air conditioning and refrigeration, engineered pipe, waterworks, fire protection, pipes, valves and fittings and industrial supplies products. Headquartered in Burlington, Ontario, the company operates approximately 250 branches across Canada.
Wolseley's Canadian Industrial Business Group has released its new industrial products catalog.
The 2009-10 catalog features more than 850 pages with products from more than 200 manufacturers. It also includes nearly 200 pages of fastener-related products.
"The catalog also includes an enhanced 41-page technical section that includes fastener specifications, safety PPE respiratory selection charts and adhesive bonding guides," said Doug Collins, Director of Sourcing and Marketing. "With each edition we continue to expand our offering featuring more up-to-date products from our preferred vendor partners. Also, the charts and specifications make this catalogue an important reference guide for our customers."
This 2009-10 catalog includes product lines for OEM/MRO including:
• Health & safety
• Hand tools
• Power tools
• Facility maintenance
• Material handling
• Cutting tools, tooling components and precision measuring
• Abrasives
• Welding
• Fasteners
To browse the catalog online, visit the Wolseley Industrial Products Group website. The French version of the catalog will be available shortly.
Wolseley Canada is a distributor of plumbing, heating, ventilation, air conditioning and refrigeration, engineered pipe, waterworks, fire protection, pipes, valves and fittings and industrial supplies products. Headquartered in Burlington, Ontario, the company operates approximately 250 branches across Canada.
UPDATE-Grainger sales decline deepens in July
Wed Aug 12, 2009 11:33am EDT
NEW YORK, Aug 12 (Reuters) - WW Grainger Inc (GWW.N), a supplier of building maintenance products, said on Wednesday its sales declined at a faster pace in July than in either May or June, citing weak demand across its markets.
July sales were down 14 percent from a year earlier, compared to the 13 percent sales decline Grainger reported in June and 10 percent in June.
Sales for August are trending about the same as July, the company said.
Sales of seasonal products were weak because of mild weather in much of the United States. Sales to governments fell by mid-single digits, reflecting states' budget crises, while sales to the retail and manufacturing sectors were down by double-digits, Grainger said on a monthly podcast posted on its website.
About a quarter of company sales are to the manufacturing sector -- a smaller exposure to the sector than rivals like MSC Industrial Direct Co Inc (MSM.N) and WESCO International Inc (WCC.N).
Analysts have noted a high degree of correlation between Grainger's monthly sales performance and data on U.S. non-farm payrolls and industrial production, but improvement in those metrics has not been reflected in Grainger's results.
Last week's jobs report showed a much smaller than expected decline in U.S. payrolls, while this Friday's industrial production data are expected to show an increase.
The company also competes with industrial distributors Fastenal Co (FAST.O) and Applied Industrial Technologies Inc (AIT.N).
Grainger shares were down 47 cents to $88.25 in late morning trading on the New York Stock Exchange. Fastenal and Applied Industrial were both higher. (Reporting by Nick Zieminski, editing by Gerald E. McCormick)
NEW YORK, Aug 12 (Reuters) - WW Grainger Inc (GWW.N), a supplier of building maintenance products, said on Wednesday its sales declined at a faster pace in July than in either May or June, citing weak demand across its markets.
July sales were down 14 percent from a year earlier, compared to the 13 percent sales decline Grainger reported in June and 10 percent in June.
Sales for August are trending about the same as July, the company said.
Sales of seasonal products were weak because of mild weather in much of the United States. Sales to governments fell by mid-single digits, reflecting states' budget crises, while sales to the retail and manufacturing sectors were down by double-digits, Grainger said on a monthly podcast posted on its website.
About a quarter of company sales are to the manufacturing sector -- a smaller exposure to the sector than rivals like MSC Industrial Direct Co Inc (MSM.N) and WESCO International Inc (WCC.N).
Analysts have noted a high degree of correlation between Grainger's monthly sales performance and data on U.S. non-farm payrolls and industrial production, but improvement in those metrics has not been reflected in Grainger's results.
Last week's jobs report showed a much smaller than expected decline in U.S. payrolls, while this Friday's industrial production data are expected to show an increase.
The company also competes with industrial distributors Fastenal Co (FAST.O) and Applied Industrial Technologies Inc (AIT.N).
Grainger shares were down 47 cents to $88.25 in late morning trading on the New York Stock Exchange. Fastenal and Applied Industrial were both higher. (Reporting by Nick Zieminski, editing by Gerald E. McCormick)
Monday, July 20, 2009
WW Grainger 2Q Earnings Fall 18% On Lower Volumes
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
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
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.
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