W.W. Grainger, Inc. Announces Unaudited Consolidated Earnings Results for Fourth Quarter and Full Year Ended December 31, 2016; Reaffirms Earnings Guidance for 2017; Records Its 2017 Goodwill and Intangible Impairment
January 25, 2017 at 06:00 pm IST
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W.W. Grainger, Inc. announced unaudited consolidated earnings results for fourth quarter and full year ended December 31, 2016. For the quarter, the company reported Net sales of $2,470,710,000 against net sales of $2,478,258,000 a year ago. Operating earnings was $174,229,000 against operating earnings of $251,626,000 a year ago. Interest income was $243,000 against interest income of $232,000 a year ago. Earnings before income taxes were $145,309,000 against earnings before income taxes of $234,933,000 a year ago. Net earnings attributable to the company were $60,666,000 against net earnings attributable to the company of $145,232,000 a year ago. Diluted per share was $1.01 against diluted per share was $2.32 a year ago. Operating earnings decrease was driven by the flat sales, restructuring costs, other charges and a lower gross profit margin.
For the period, the company reported Net sales of $10,137,204,000 against net sales of $9,973,384,000 a year ago. Operating earnings was $1,119,497,000 against operating earnings of $1,300,320,000 a year ago. Interest income was $717,000 against interest income of $1,166,000 a year ago. Earnings before income taxes were $1,019,058,000 against earnings before income taxes of $1,250,705,000 a year ago. Net earnings attributable to the company were $605,928,000 against net earnings attributable to the company of $768,996,000 a year ago. Diluted per share was $9.94 against diluted per share was $11.69 a year ago. Net cash provided by operating activities of $1,002,976,000 against net cash provided by operating activities of $989,904,000 a year ago. Additions to property, buildings and equipment were $284,249,000 against additions to property; buildings and equipment were $373,868,000 a year ago.
The company reiterated its 2017 sales and earnings per share guidance issued on November 11, 2016, and continue to expect 2% to 6% sales growth and earnings per share of $11.30 to $12.40 for 2017. The company is currently projecting a tax rate of 36.0% to 37.0% for 2017, unchanged from the prior projection on November 11, 2016.
The company reported goodwill and intangible impairment was $52,318,000.
W.W Grainger, Inc. specializes in professional distribution of industrial supplies and equipment. The group supplies businesses and institutions with maintenance equipment, industrial safety supplies, service and maintenance parts, lighting products, ventilation equipment, pumps and plumbing products, etc.
At the end of 2020, products are marketed through a network of 407 branches (of which 287 in the United States and 49 in Canada), 29 distribution centers (of which 17 in the United States and 5 in Canada), through catalogues and the Internet.
Net sales are distributed geographically as follows: the United States (72.6%), Canada (4%) and other (23.4%).
W.W. Grainger, Inc. Announces Unaudited Consolidated Earnings Results for Fourth Quarter and Full Year Ended December 31, 2016; Reaffirms Earnings Guidance for 2017; Records Its 2017 Goodwill and Intangible Impairment