CHICAGO -- Grainger today reported results for the second quarter and six months ended June 30, 2010.Second quarter sales of $1.8 billion increased 16 percent versus the 2009 second quarter. Both quarters had the same number of selling days (64). Net earnings for the quarter increased 40 percent to $129 million versus $92 million in 2009. Earnings per share increased 43 percent to $1.73 versus $1.21 for the second quarter of 2009. Similar to the 2010 first quarter, results included an unusual item related to a policy change for employee paid time off, which benefitted the quarter by approximately $0.08 per share.
"We are very encouraged by the strong organic growth in the quarter and the resulting earnings power demonstrated by our business," said Chairman, President and Chief Executive Officer Jim Ryan. "Performance this quarter was the result of a complete team effort. Our businesses in the United States and Canada, along with the majority of our international operations, contributed to a solid quarter for both sales and earnings."
The GAAP financial statements are the source for all amounts used in the Return on Invested Capital (ROIC) calculation. ROIC is calculated using annualized operating earnings based on year-to-date operating earnings divided by a 7 point average for net assets less cash equivalents (non operating cash), deferred taxes, and investments in unconsolidated entities, plus the LIFO reserve. Working liabilities are the sum of trade payables, accrued compensation and benefits, accrued contributions to employees' profit sharing plans, and accrued expenses.
"Although there continues to be uncertainty as to the extent and duration of the economic recovery, our strong execution and results in the first half of the year give us confidence to raise and narrow our 2010 sales growth guidance to a range of 12 to 14 percent and our earnings per share guidance to a range of $6.10 to $6.40, excluding unusual items," concluded Ryan.
Previous guidance, issued by Grainger in April 2010, forecasted sales growth of 9 to 12 percent and earnings per share of $5.70 to $6.10 for the full year 2010.