Global Fastener News

Grainger Fastener Sales Stronger Than Expected

Jason Sandefur

Grainger reported sales in its branched-based segment, including fasteners, increased 6% to $1.27 billion during the third quarter of 2006, while segment earnings rose 9.5% to $149.3 million. Product line expansion in 2006, which included 31,000 fasteners and 10,000 other MRO products contributed approximately 2 percentage points to the growth in the segment.
“Sales for the program are stronger than the company had expected,” Grainger stated.
Daily sales in the U.S. increased 7%, with the strongest sales growth coming from government, manufacturing and commercial customers. “Offsetting the growth was the absence of any hurricane-related sales, which contributed approximately $8 million in the third quarter of 2005,” the company stated.
Daily sales in Mexico rose 23%, boosted by a strong economy, expanded telesales operation, a new branch in Santa Catarina and an expanded branch presence in Tijuana.
During Q3 Grainger opened its first distribution facilities in Shanghai, a 120,000 sq ft master branch and a will-call express location. Start-up costs reduced operating earnings in the quarter by $1.7 million. In the U.S. opened one new branch and closed another, bringing the total number of branches to 436.
Branched-based revenue during the first nine months of 2006 climbed 6% to $3.7 billion, with operating earnings gaining 16.7% to $433.9 million.
Overall Grainger revenue grew 6.4% to $1.52 billion in Q3, with profit surging 19% to $104.5 million. Consolidated nine-month sales increased 6.9% to $4.4 billion, while net profit improved 17.3% to $284.5 million. Web: grainger.com �2006 FastenerNews.com