LONGBOAT KEY, Fla., May 5 /PRNewswire-FirstCall/ -- Grainger Chairman and
Chief Executive Officer Richard L. Keyser today addressed a group of analysts
attending the annual meeting of the Electrical Products Group of New York.
Keyser described Grainger's strategy to accelerate growth and reiterated the
company's sales and earnings guidance for the year. A complete copy of the
presentation is available at the Investor Relations section of Grainger's Web
site, www.grainger.com .
"Our initiatives are just beginning to help us grow, not only sales, but
our share of the $100 billion facilities maintenance market," said Keyser. He
described the company's planned, market-by-market march across the United
States designed to bolster Grainger's presence in 25 key metro-markets. "In
2004, we're adding 16 new, larger branches, relocating 20 full sized branches
to make them more accessible to our customers and expanding 19 branches in the
ten markets -- Atlanta, Denver, Houston, St. Louis, Tampa, and four markets in
southern California." Increasing product availability and extending sales
force coverage in the market, combined with offering great service, are also
key elements of this market expansion program.
Grainger's improved customer service is due in part to recent enhancements
to its logistics network. The company completed the redesign of its network
of nine distribution centers to improve product availability for customers and
increase the company's capacity and productivity. "We've in effect changed
all the tires on this car while it is still moving," Keyser added. "We now
have more than one million additional square feet in the logistics network and
automation to increase accuracy, speed and efficiency." As a result of this
project, the company expects to see a $10 million operating earnings benefit
in 2004, or a $25 million improvement versus 2003.
Keyser also reaffirmed the company's sales and earnings per share guidance
for the year 2004, saying, "We expect to end the year with sales between 5 and
10 percent above 2003 and earnings per share between $2.60 and $2.80." Keyser
told the analysts that the company's daily sales rate for the first quarter
was 6 percent; April 2004 sales ran about 6 percent versus April 2003.
W.W. Grainger, Inc. (NYSE: GWW), with 2003 sales of $4.7 billion, is the
leading broad line supplier of facilities maintenance products serving
businesses and institutions throughout North America. Through its network of
nearly 600 branches, 17 distribution centers and multiple Web sites, Grainger
helps customers save time and money by providing them with the right products
to keep their facilities running.
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 "strategy," "guidance," "planned," "designed to," "expect,"
"forecast," 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.