Summary
W.W. Grainger, Inc. (GWW) filed its 2002 annual report on Form 10-K on March 19, 2003, detailing its business operations and financial condition for the year ended December 31, 2002. The company operates as a leading North American distributor of products used by businesses and institutions for facility maintenance, employing a multi-channel approach including branches, sales force, direct marketing, and the internet. Key segments include Branch-based Distribution Businesses (comprising Industrial Supply, Acklands-Grainger in Canada, FindMRO, Global Sourcing, Parts, and Mexico operations), Lab Safety, and Integrated Supply. The report highlights ongoing investments in distribution network reconfiguration and automation for enhanced efficiency and customer service. Financially, the company reported $3,996,680,807 in aggregate market value of common equity held by non-affiliates as of June 28, 2002. Investors should note the company's strategy of expanding its e-commerce presence and its focus on providing a broad product selection and efficient delivery to its diverse customer base.
Key Highlights
- 1W.W. Grainger operates a multi-channel distribution model serving over 1.5 million customers with facility maintenance products, utilizing branches, sales force, direct marketing, and internet channels.
- 2The company's primary segments are Branch-based Distribution Businesses (including Industrial Supply, Acklands-Grainger, FindMRO, Global Sourcing, Parts, and Mexico), Lab Safety, and Integrated Supply.
- 3Significant investment is being made to reconfigure the distribution network for Industrial Supply, transforming existing centers into more highly automated distribution centers (DCs) to reduce costs and improve service.
- 4Grainger.com continues to be a strong e-commerce channel, with sales processed through the website reaching approximately $420 million in 2002.
- 5The company offers a broad product selection, with its Industrial Supply catalog featuring nearly 90,000 products and a CD-ROM version also available.
- 6Grainger's Lab Safety division operates as a direct marketer, reaching customers through targeted catalogs and online channels, offering over 100,000 products.
- 7The company is managing approximately 600 asbestos-related personal injury lawsuits but believes the ultimate resolution will not materially affect its financial position or results of operations, with potential insurance coverage and indemnification remedies in place.