CHICAGO, May 9, 2001 – Grainger (NYSE: GWW) Grainger’s Chairman and Chief Executive Officer, Richard L. Keyser, today spoke to analysts attending the annual meeting of the Electrical Products Group of New York, held on Long Boat Key, Florida. A complete copy of Keyser’s presentation is available at the Investor Relations section of Grainger’s web site, www.grainger.com.
In the presentation Keyser reiterated the importance of the Internet to the Company’s growth strategy and announced that Grainger.com, the Company’s flagship site, is expected to be profitable for the year. “Grainger.com has been making a positive variable contribution for some time, and we continue to expect it to make a positive contribution on a fully loaded basis this year”, he said. Grainger.com was nearly breakeven in the 2001 first quarter despite modest sales growth and an increase in spending for site development. Keyser added, “Our industry-leading web site will soon feature improved functionality including increased customer personalization, enhanced search capabilities, and the opportunity to order customized items with Grainger suppliers.”
Keyser also told analysts that the Grainger daily sales rate for the month of April 2001 was 2% below April 2000. The principal cause of the decline was the continuing weakness in the North American economy. However, Keyser reaffirmed the Company’s earnings per share guidance for the year 2001. “The Company expects earnings per share of $2.20 to $2.50, excluding a one-time charge of $0.40 to be taken in the quarter ending June 30, 2001. Without some pickup in sales growth, however, we’re likely to be low in the range”. The non-recurring charge relates to the closure of Material Logic and the write-down of certain Internet related investments announced on April 26, 2001.
W.W. Grainger, Inc. (GWW), with 2000 sales of $5 billion, is the leading
North American provider of maintenance, repair, and operating (MRO) supplies and related information to businesses and institutions. GWW shares are traded on the New York and Chicago stock exchanges. For more information, visit Grainger online at www.grainger.com.
This document contains statements that are forward-looking, i.e. not historical facts. The forward-looking statements (generally identified by words or phrases indicating a projection or future expectation such as “expects,” “will soon feature,” and “guidance”) 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 read 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.