CHICAGO, November 30, 2001—Grainger (NYSE: GWW) Grainger’s
Chairman and Chief Executive Officer, Richard L. Keyser, spoke today to analysts
attending the Lehman Brothers 19 th Annual Industrial Select Conference in
Coral Gables, Florida. In his presentation, Keyser reiterated earnings guidance for
2001, which was originally presented on January 31. “As we close what has been a
challenging year with sales below the prior year, we have succeeded in taking costs
out of our operations. I want to reiterate that we expect to deliver earnings per share
this year between $2.20 to $2.30, excluding a $0.40 per share restructuring charge,”
he stated.
Keyser also discussed expectations for 2002. “Based on the consensus
economic forecast for next year, we don’t expect any pickup until the second half of
the year. Due to the economic uncertainty, we are planning for total sales growth in
the 2 to 7 percent range with an earnings per share target of $2.30 to $2.65,” he said.
Longer-term goals include sales growth of 7-10 percent, continued improvement in
return on invested capital, and a return to historic operating margins.
Keyser also outlined the plan for an improved distribution network. He said,
“At the completion of the project, we’ll have nine distribution centers across the country. Five will be new; four will be redesigned versions of existing facilities. The
new network will enable us to remove a step from our distribution process, eliminate
multiple handling of products, and get products to our customers faster. Total capital
expenditure for the project is just over $200 million.”
A complete copy of the presentation is available at the investor relations
section of Grainger’s web site, www.grainger.com. The presentation will be
audiocast live at 10:55 A.M. EST. Interested participants should dial 800-521-5426
or 303-267-1001 and enter code 1329328 to listen. A replay will be available 24
hours after the conference for a period of 7 days and can be accessed by dialing
800-625-5288 or 303-804-1855 and entering code 1329328.
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. Grainger shares are traded on the
New York and Chicago stock exchanges. For more information about Grainger, visit
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 “guidance,” “expect,”
“forecast,” “planning,” “range,” “goals,” “should,” and “target”) are based on the
Company’s current expectations and some of them are subject to risks and
uncertainties (including, for example, changes in economic and business
conditions) 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.