Grainger’s 1Q sales rise 7 percent
Industrial Distribution staff -- Industrial Distribution, 4/14/2008 6:14:00 AM
First-quarter sales for W.W. Grainger Inc. rose 7.4 percent to $1.66 billion, compared with $1.55 billion during the same period last year.Net earnings for the Lake Forest, Ill.-based broad-line MRO distributor reached $114.2 million, up 12.2 percent compared with $101.8 million during the first quarter of 2007.
"We are off to a strong start. We are encouraged by the market share gains achieved in a slowing economy," chairman and CEO Richard L. Keyser said, adding that the company raised its earnings guidance by 1.7 percent, spurred by “our aggressive stock repurchase efforts in the first quarter.”
Grainger spent $196 million buying back 2.6 million shares of its own stock during the quarter and completed its accelerated repurchasing program in January, adding another 400,000 shares. The company said it may still buy back up to 1.7 million shares under the current plan.
Responding to a whistleblower lawsuit and a federal Justice Department investigation of Grainger’s contract with the U.S. General Services Administration (GSA), the company said it met with DOJ representatives in March to discuss the accusations.
The lawsuit, filed by a former regional manager, alleges that violated two federal trade acts and the False Claims Act.
“The timing and outcome of this matter are uncertain and could include a settlement or civil litigation and while this matter is not expected to have a material adverse effect on Grainger's financial position, an unfavorable resolution could result in material payments by Grainger. In 2007, the GSA contract represented less than 2 percent of Grainger's total company sales. Grainger continues to believe that it has complied with the GSA contract in all material respects,” the company said in a statement.
Talkback
Related Content
Sponsored Links
View All Blogs
