Grainger Reports Results For Year Ended December 31, 2016

Grainger (NYSE: GWW) today reported results for the year ended December 31, 2016.  Sales of $10.1 billion were up 2 percent versus $10 billion in 2015.  Reported net earnings of $606 million declined 21 percent versus $769 million in 2015.  Reported earnings per share of $9.87 were down 15 percent versus $11.58 in 2015.

“In 2016 we faced a challenging demand environment compounded by a lack of inflation, which put pressure on revenue and gross margins.  In the face of this pressure, we effectively managed expenses while making moves to improve our long-term competitiveness,” said DG Macpherson, Chief Executive Officer.  “Our core businesses performed in line with guidance, and we continue to be pleased with our progress on key initiatives including sales force effectiveness and the vertical alignment of the sales force in the United States, the medium-sized customer acquisition and penetration strategy in the United States and the growth of the online model globally.  In 2017, we remain focused on creating value for customers, delivering an effortless customer experience and reducing costs.

“The fourth quarter and the year contained adjustments from our previously announced restructuring plans as well as several accounting actions that affected our reported results. The largest of these was a goodwill impairment for Fabory.  Since we acquired Fabory, the business has struggled with growth and profitability.  During the last few years, we’ve returned the business to solid footing by reducing the cost base and stabilizing revenue.  Unfortunately, this progress is not enough to justify the current valuation.  As a result, we’ve recognized an impairment charge on the business.  We still believe Fabory can deliver profitable growth for Grainger going forward,” he concluded.
more at:  http://invest.grainger.com/phoenix.zhtml?c=76754&p=irol-newsArticle&ID=2239565

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