Grainger has reported an increase in sales for Q2 2017.
Sales rose 2% to $2.6 billion while company operating earnings were down 24% to $232 million thanks largely to restructuring costs – excluding restructuring in both years, operating earnings were down 9%.
The two reportable segments of the business – the US and Canada – represent 80% of company sales for the quarter. The US saw sales up 1%, while Canada’s sales fell 11% thanks to a lower gross profit and higher operating expenses.
“The second quarter was in line with our expectations, as we saw continued volume growth from our strategic pricing initiatives in the United States,” said CEO DG Macpherson. “We remain on schedule to roll out web prices on our entire assortment on Aug 1.”
“Outside the United States, we took aggressive action to streamline our portfolio and focus on profitable businesses, as we announced the wind-down of the business in Colombia and previously announced the closing of 59 branches in Canada this year. Based on our confidence from what we are seeing, we are reiterating our guidance for the year,” Macpherson concluded.
Grainger is a distributor of industrial supplies, MRO equipment, tools and materials. Grainger acquired Fabory in 2011 and Cromwell in 2015.