W.W. Grainger, Inc. Reports 1998 Third Quarter, Nine Months

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W.W. Grainger, Inc. Reports 1998 Third Quarter, Nine Months
    CHICAGO, Oct. 13 /PRNewswire/ -- W.W. Grainger, Inc. (NYSE: GWW) reported
that sales increased 5.0% to $1,120,038,000 for the third quarter ended
Sept. 30, 1998, from sales of $1,066,927,000 reported for the same 1997
period.  Net earnings were $56,089,000 compared with 1997 third quarter net
earnings of $56,480,000.  On a diluted basis, earnings per share increased
1.8% to 57 cents per share, compared with 1997 third quarter earnings per
share of 56 cents.
    For the 1998 first nine months, sales increased 6.2% to $3,296,115,000
from sales of $3,103,689,000 reported for the same 1997 period.  Net earnings
were $172,511,000 compared with 1997 first nine months net earnings of
$168,648,000.  On a diluted basis, earnings per share increased 6.7% to $1.75
per share, compared with 1997 first nine month earnings per share of $1.64.
    Earnings per share are based on the average number of shares outstanding
during each period after reflecting the 2-for-1 stock split effective at the
close of business on May 11, 1998.
    W.W. Grainger, Inc. (GWW), with 1997 sales of $4.1 billion, is the leading
distributor of maintenance, repair, and operating (MRO) supplies and related
information to the commercial, industrial, contractor, and institutional
markets in North America.  GWW shares are traded on the New York and Chicago
stock exchanges.  For more information, visit Grainger on-line at
http://www.grainger.com.

               Consolidated Statements of Earnings (Unaudited)

                        (In thousands of dollars except for per share amounts)
                            Three Months ended         Nine Months ended
                                  Sept 30                    Sept 30
                              1998          1997         1998          1997

    Net sales           $1,120,038    $1,066,927   $3,296,115    $3,103,689

    Cost of merchandise
     sold                  714,727       693,775    2,103,690     2,006,228

    Gross profit           405,311       373,152    1,192,425     1,097,461

    Warehousing, marketing,
     and administrative
     expenses              309,068       277,338      897,825       811,687

    Operating earnings      96,243        95,814      294,600       285,774

    Other income or
     (deductions)
      Interest income          672           314        1,152         2,216
      Interest expense      (1,550)       (1,436)      (4,847)       (4,012)
      Unclassified--net     (1,097)          233         (970)         (536)
                            (1,975)         (889)      (4,665)       (2,332)

      Earnings before
        income taxes        94,268        94,925      289,935       283,442

    Income taxes            38,179        38,445      117,424       114,794

      Net earnings         $56,089       $56,480     $172,511      $168,648

    Net earnings per share
      - Basic                $0.58         $0.57        $1.78         $1.66
      - Diluted              $0.57         $0.56        $1.75         $1.64

    Average number of shares
      outstanding
      - Basic           96,519,586    98,968,570   96,966,816   101,417,971
      - Diluted         98,010,294   100,669,166   98,684,554   102,944,444

    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 and Nine Months
ended September 30, 1998 is available upon request.  Contact Bill Chapman,
Investor Relations Manager. 847-793-6435.)
SOURCE W.W. Grainger, Inc.
http://www.grainger.com
CONTACT:
Bill Chapman, Investor Relations Manager of
W.W. Grainger, Inc., 847-793-6435