CHICAGO, June 25 /PRNewswire-FirstCall/ -- Grainger President and Chief
Operating Officer Wesley M. Clark, addressing a group of analysts in Chicago
today, outlined Grainger's initiatives to capture additional market share
through investments in customer service and technology and shared his
expectations for the remainder of 2003. The presentation will be available as
a webcast at www.twst.com/econf/mm/blair2/gww.html starting at 9:10 a.m. CDT.
A complete copy of the presentation is also available at the Investor
Relations section of Grainger's Web site, www.grainger.com .
In his speech Clark revised sales guidance for 2003: "The economy isn't
helping and we don't know just when the economy is going to turn. That's why
we're lowering our sales growth estimates. We now expect sales to be up 1 to
3 percent versus last year." The prior projected sales growth range had been
4 to 6 percent, but Clark noted that sales in the second quarter have
weakened. He also stated that given the lackluster economy, the company needs
to reexamine its costs and therefore is more comfortable with the low end of
the range for 2003 earnings per share: "Given what we see right now, we
should come in toward the lower end of our forecasted range of $2.50 to
$2.65."
In his presentation to the William Blair & Co. 23rd Annual Growth Stock
Conference Clark discussed Grainger's plan to grow share in the $100 billion
facilities maintenance market through ongoing investments in people,
technology and product availability to improve customer service. He said,
"Not only do we have the products businesses and institutions need when and
where they need them, we save them time and effort, which in turn saves them
money." He described how Grainger has developed strong relationships with
customers seeking to reduce the costs of the multi-step process of purchasing
-- finding, buying, receiving and paying for facilities maintenance products.
Clark added, "Grainger is in the home stretch of completing a new,
redesigned distribution network." Grainger remains on schedule to complete
its new logistics network in early 2004, recently opening its Memphis
facility, the sixth of nine new or redesigned distribution centers. The
enhanced network is expected to improve product availability for customers
while substantially increasing the company's capacity and productivity. The
$200 to $210 million capital project is projected to be cash flow positive on
a cumulative basis by 2005.
W.W. Grainger, Inc. (NYSE: GWW), is the leading broad line supplier of
facilities maintenance products in North America. Grainger serves customers
through a network of nearly 600 branches, 18 distribution centers, and four
Web sites. Sales for 2002 were $4.6 billion. For more information, visit
Grainger online at www.grainger.com .
This document contains forward-looking statements under the federal
securities laws. The forward-looking statements relate to the company's
expected future financial results and business plans, strategies, and
objectives and are not historical facts. They are generally identified by
qualifiers such as "guidance," "estimates," "expect," "comfortable with," "on
schedule," "projected," or similar expressions. There are risks and
uncertainties the outcome of which could cause the company's results to differ
materially from what is projected. The forward-looking statements 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.
SOURCE W.W. Grainger, Inc.