CHICAGO, April 13 -- 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 ead 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.
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.)