Global Fastener News

Grainger Trimming IT Workforce Despite Record Profit

Jason Sandefur

Grainger reported sales and net earnings rose to record levels during the third quarter of 2007, with revenue growing 9% to $1.7 billion and profit gaining 4% to $109.1 million. Overall sales during the first nine months of 2007 gained 9% to $4.8 billion, and net earnings jumped 11% to $316 million.
Looking ahead, CEO Richard Keyser indicated the company is looking to cut costs in its workforce. Grainger has identified as many as 125 information technology jobs that it plans to cut in the fourth quarter, which should generate as much as $12 million in savings during 2008.
Branch-based sales, comprising revenue in the U.S. Mexico and China, increased 9% to $1.39 billion during Q3, while segment operating income improved 15.2% to $174.3 million. Grainger opened two new full service branches and two will-call express locations in the United States during Q3.
Third quarter sales in Mexico rose 24% due to Grainger’s ongoing branch expansion program. Grainger opened one new branch and one master branch in Mexico during Q3. The company plans to double the number of branches over the next several years.
In China, the company opened two will-call express locations during Q3.
Nine-month revenue at Grainger’s Branch-based division increased 8.9% to $4.01 billion, with operating earnings soared 16.4% o $505 million. Web: grainger.com �2007 FastenerNews.com