Summary
W.W. Grainger, Inc. (GWW) reported its 2009 fiscal year results in this 10-K filing, which was prepared in the shadow of the significant global economic downturn. Net sales decreased by 9.2% to $6.22 billion compared to the prior year, reflecting a challenging business environment with declines across most customer sectors, particularly heavy manufacturing and resellers. Despite the sales decline, the company managed to increase its gross profit margin to 41.8% from 41.0% due to price increases outpacing product cost increases. Operating expenses were reduced by 4.6%, primarily through headcount reductions and cost containment efforts, which helped to mitigate the impact of lower sales on operating earnings. Financially, Grainger demonstrated resilience, with net earnings attributable to the company at $430.5 million, a decrease of 9.4% from 2008. The company maintained a strong cash flow from operations, which improved to $732.4 million in 2009, enabling continued investment in its distribution network and funding for acquisitions. Grainger also continued its share repurchase program and paid dividends, signaling confidence in its long-term financial health despite the economic headwinds. The outlook for 2010 projected a return to sales growth of 6-10%, driven by anticipated economic recovery, acquisitions, and the ongoing product line expansion initiative.
Financial Highlights
52 data points| Revenue | $6.22B |
| Cost of Revenue | $3.62B |
| Gross Profit | $2.60B |
| SG&A Expenses | $1.93B |
| Operating Income | $665.22M |
| Interest Expense | $8.77M |
| Net Income | $430.47M |
| EPS (Basic) | $5.70 |
| EPS (Diluted) | $5.62 |
| Shares Outstanding (Basic) | 73.79M |
| Shares Outstanding (Diluted) | 74.89M |
Key Highlights
- 1Net sales for 2009 declined 9.2% to $6.22 billion, reflecting the impact of the economic downturn on key customer sectors.
- 2Gross profit margin improved to 41.8% from 41.0% in 2008, driven by successful price increases and cost management.
- 3Operating expenses were reduced by 4.6% due to cost-containment measures and lower headcount.
- 4Net earnings attributable to W.W. Grainger, Inc. were $430.5 million, a decrease of 9.4% year-over-year.
- 5Cash flow from operations remained strong, increasing to $732.4 million in 2009, supporting business investments and shareholder returns.
- 6The company repurchased 4.5 million shares in 2009 and continued to pay quarterly dividends, demonstrating commitment to shareholder value.
- 7Grainger anticipated a return to sales growth of 6-10% in 2010, driven by an improving economy, strategic acquisitions, and its product line expansion program.