Early Access

10-QPeriod: Q1 FY2015

W.W. GRAINGER, INC. Quarterly Report for Q1 Ended Mar 31, 2015

Filed April 30, 2015For Securities:GWW

Summary

W.W. Grainger, Inc. reported net sales of $2.44 billion for the first quarter of 2015, a modest 2.3% increase over the prior year, primarily driven by volume growth and a minor acquisition, slightly offset by negative foreign exchange impacts. Net earnings attributable to W.W. Grainger, Inc. declined by 2.6% to $211 million, translating to diluted earnings per share of $3.07, which was flat year-over-year due to a lower share count. The company's operating earnings saw a slight decrease of 0.9% to $351 million, impacted by a reduction in gross profit margin and increased operating expenses related to growth initiatives and the WFS acquisition in Canada. Despite a challenging economic environment, particularly in Canada due to low oil prices, Grainger is undertaking strategic investments in its sales force and eCommerce capabilities. Management has revised its 2015 outlook downwards, anticipating slower macroeconomic growth, and now projects sales growth between 1% and 4% and earnings per share between $12.25 and $12.95. The company also announced plans to repurchase an additional $1 billion of its shares in 2015, signaling a commitment to shareholder returns.

Financial Highlights

50 data points
Beta

Revenue

$2.44B

0.4% Gross Margin

Net Income

$211.01M

0.1% Net Margin

EPS (Diluted)

$3.07

Total Assets

$5.21B

Cash & Equivalents

$243.43M

Free Cash Flow

$56.72M

Financial Statements
Beta
Revenue$2.44B
Cost of Revenue$1.35B
Gross Profit$1.09B
SG&A Expenses$742.50M
Operating Income$351.25M
Interest Expense$1.64M
Net Income$211.01M
EPS (Basic)$3.11
EPS (Diluted)$3.07
Shares Outstanding (Basic)67.23M
Shares Outstanding (Diluted)67.98M

Key Highlights

  • 1Net sales increased by 2.3% to $2.44 billion, with volume being the primary driver.
  • 2Net earnings attributable to W.W. Grainger, Inc. decreased by 2.6% to $211 million.
  • 3Diluted earnings per share remained flat at $3.07, benefiting from a reduced weighted average share count.
  • 4Operating earnings decreased by 0.9% to $351 million, due to lower gross profit margins and increased operating expenses.
  • 5The Canadian segment experienced an 8% sales decline, largely due to the weakening Canadian dollar and lower oil prices impacting the natural resources sector.
  • 6The company revised its 2015 full-year guidance downwards, anticipating slower economic growth.
  • 7Grainger announced plans to repurchase an additional $1 billion of its shares in 2015.

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