Grainger projects strong revenues for ‘07

Industrial Distribution staff -- Industrial Distribution, 11/17/2006 7:25:00 AM

Revenues for 2007 for W.W. Grainger, Inc., are expected to grow by 7 percent to 10 percent, chairman-CEO Richard Keyser said in an analyst meeting held Nov. 15 in Lake Forest, Ill.

Keyser also told analysts that company earnings per share should be between $4.60 and $4.85. Cash flow from operations for 2007 is expected to be in the range of $450 to $500 million, he added.

The company also announced that daily sales in October 2006 were up 5 percent over those in October 2005. In addition, daily sales for November 2006 are expected to be up 6 percent to 7 percent. Total sales for ‘06 are expected to be approximately $5.9 billion.

It was also announced that Lab Safety Supply, a division of Grainger, had agreed to acquire the assets of business-to-business direct marketers Professional Inspection Equipment Inc. and Construction Book Express Inc.

Based in Hauppauge, N.Y., both companies are direct marketers of targeted, specialty businesses in the safety, industrial, environmental and homeland security markets.

The two companies had annual sales in 2006 of more than $20 million. The deal is expected to close within the next week.

The deal is consistent with Grainger’s strategy to find direct marketing companies that complement its targeted catalog approach.

LSS is a direct marketer of targeted, specialty businesses in the safety, industrial, environmental and homeland security markets.