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Grainger Q2 sales of $2.6 billion increased 2 percent

Staff Writer | July 19, 2016
Grainger reported results for the 2016 second quarter ended June 30, 2016. Sales of $2.6 billion increased 2 percent versus $2.5 billion in the second quarter of 2015.
Grainger   Net earnings of $173 million were down 22 percent
There were 64 selling days in the 2016 second quarter, the same as the 2015 second quarter. Net earnings of $173 million were down 22 percent versus $221 million in 2015. Earnings per share of $2.79 declined 14 percent versus $3.25 in 2015.

Sales increased 2 percent in the 2016 second quarter versus the prior year. The sales performance included a 4 percentage point contribution from Cromwell Group (Holdings) Limited, acquired on September 1, 2015.

Excluding this acquisition, organic sales declined 2 percent driven by a 1 percentage point decrease in volume and a 1 percentage point reduction in price.

Company operating earnings of $306 million for the 2016 second quarter declined 14 percent versus $357 million in the 2015 quarter.

The decline was driven by lower sales, lower gross profit margins and higher operating expenses. Excluding the items detailed in the table above in both years, operating earnings declined 10 percent in the quarter.

The company has two reportable business segments, the United States and Canada, which represented approximately 82 percent of company sales for the quarter.

The remaining operating businesses are located in Europe, Asia and Latin America. The single channel online businesses are included in Other Businesses and are not reportable segments.