Global Fastener News

Fasteners Boost Grainger Growth

Jason Sandefur

Fasteners and other MRO products contributed 1 percentage point of growth to Grainger’s Branch-based sales during the second quarter of 2006. Segment sales, which include the U.S., Mexico and China, grew 8% to $1.2 billion, while operating earnings increased 21% to $152 million during Q2.
Branch sales in Canada gained 13% to $147 million, but profit dropped 32% to $3 million due to “severance expenses related to a leadership change” among other factors.
Overall sales rose 8% to $1.5 billion, and income jumped 15% to $94 million. Consolidated first-half revenue gained 7% to $2.9 billion, with net earnings rising 17% to $180 million.
Grainger completed 34 branch projects during Q2, which included expanding 13 branches, relocating six branches, opening 11 new branches and selling four others. The majority of these projects were in Baltimore, Cincinnati, Kansas City, Miami, Philadelphia and Washington D.C. Web: grainger.com �2006 FastenerNews.com