CHICAGO, April 13 /PRNewswire/ -- W.W. Grainger, Inc. (NYSE: GWW) today
reported results for the first quarter ended March 31, 1999. Sales increased
3.2 percent to $1,091 million for the first quarter of 1999, versus $1,057
million for the first quarter of 1998. Net earnings for first quarter 1999
were $56.3 million, compared to $57.2 million for the prior year quarter.
Earnings per fully diluted share increased 3.4% to $0.60 versus $0.58 in the
comparable quarter in 1998.
"Our record sales results were achieved despite difficult economic
conditions in the markets we serve. Reflecting the underlying strength of our
business and our leadership advantages, we overcame weakness in the industrial
economy and unfavorable Canadian exchange rates. Our business transition
which began in 1998 is on schedule, and we are beginning to see the success of
our customer-focused strategy," said Richard L. Keyser, Grainger's Chairman
and Chief Executive Officer.
The Company's results reflected continuing investments in both the
branch-based businesses and other businesses such as Grainger Integrated
Supply, the Company's outsourcing unit, where average daily sales grew 25% in
the quarter. Results also reflected continuing investments in strategic
growth opportunities to leverage the Company's nationally-recognized
business-to-business Internet expertise. In February, 1999, the Company
announced the formation of OrderZone.com by Grainger, the first multi-supplier
Internet marketplace, which provides a complementary mix of industrial
products to customers.
Keyser added, "We are excited about the planned opening of OrderZone.com
in May, 1999. Based on the success of Grainger.com, which experienced rapid
sales growth in the first quarter, we believe the Internet provides
cost-effective opportunities to complement and expand our industry
leadership."
W.W. Grainger, Inc. (GWW), with 1998 sales of $4.3 billion, is the leading
North American provider of maintenance, repair, and operating (MRO) supplies,
services, and related information to businesses and institutions. GWW shares
are traded on the New York and Chicago stock exchanges. For more information,
visit Grainger on-line at http://www.Grainger.com.
This document contains statements that are not historical facts and are
forward-looking. The forward-looking statements are based on the Company's
current expectations and some of them are subject to risks and uncertainties
the outcome of which could result in actual future performance being
materially different from the performance indicated. They should be read in
conjunction with the Company's most recent annual report, as well as the
Company's Form 10-K and other reports filed with the Securities and Exchange
Commission, containing a discussion of the Company's business and of various
factors that may affect it.
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands of dollars except
for per share amounts)
Three Months ended March 31
1999 1998
Net sales $1,090,843 $1,057,107
Cost of merchandise sold 687,981 671,952
Gross profit 402,862 385,155
Warehousing, marketing, and
administrative expenses 306,596 287,564
Operating earnings 96,266 97,591
Other income or (deductions)
Interest income 410 338
Interest expense (1,733) (1,683)
Unclassified -- net (384) (159)
(1,707) (1,504)
Earnings before
income taxes 94,559 96,087
Income taxes 38,296 38,915
Net earnings $56,263 $57,172
Net earnings per share
- Basic $0.61 $0.59
- Diluted $0.60 $0.58
Average number of shares
outstanding
- Basic 92,833,727 97,224,310
- Diluted 94,210,765 98,981,736
Earnings per share and the average number of shares outstanding reflect
the 2-for-1 stock split effective at the close of business on May 11, 1998.
(Supplemental financial information concerning the Quarter ended March 31,
1999 is available upon request. Contact Bill Chapman, Investor Relations
Manager, 847-793-6435.)
SOURCE W.W. Grainger, Inc.
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Related links:
http://www.Grainger.com
Company News On-Call:
http://www.prnewswire.com/comp/953850.html or fax,
800-758-5804, ext. 953850
CONTACT:
R.D. Pappano, V.P. Investor Relations and
Financial Reporting of W.W. Grainger, Inc., 847-793-6442
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