W.W. Grainger, Inc. (GWW) February 2012 Sales Release Call March 12, 2012 8:00 AM ET Executives Bill Chapman – Senior Director, IR Presentation
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I’ll begin with our largest segment, the United States. Daily sales for the U.S. segment increased 12%, consisting of 11 percentage points from volume and 3 percentage points from price, offset by a 2 percentage point drag from lower sales of seasonal products due to milder weather.Price inflation in February was higher than the 2 percentage points reported in January. This sequential increase reflects our February 1 st price increase, timed with the release of our new U.S. catalog, and higher product cost inflation. Let’s review our customer end markets in the United States. As a reminder, beginning in January, we began to break out the Reseller end market into two parts: Reseller and Natural Resources, which was formerly Agriculture and Mining. A restatement of that history can be found on the Investor Relations Web site under the supporting materials section for February sales. Daily sales in February for our customer end markets in the United States were as follows: Heavy Manufacturing and Retail were up in the mid teens; Light Manufacturing, Commercial and Natural Resources were up in the low double digits; Contractor, Government and Reseller were up in the high single digits. In our Canadian segment, daily sales increased 13% in U.S. currency, including a 13 percentage point contribution from volume and 1 percentage point from price, offset by a 1 percentage point decline from foreign exchange. Strong growth to customers in the Construction, Retail and Utilities end markets contributed to this strong sales performance. In local currency, sales for the Canadian segment increased 14%. Daily sales for our Other Businesses increased 100%, primarily due to the incremental sales from Fabory in Europe. Sales for Fabory continued to soften primarily due to the challenges with the European economy. Excluding acquisitions, sales for our Other Businesses increased 28% driven primarily by strong growth in Japan, Mexico, China and Colombia.
Looking forward, March will have 22 selling days, one less than March of last year and sales growth thus far in March is running in line with year-to-date sales results.Please mark your calendar for Grainger’s first quarter earnings release on Tuesday, April 17 th. If you have any questions, please contact Laura Brown, Senior Vice President of Communications and Investor Relations, at 847-535-0409 or me at 847-535-0881. Thank you. Question-and-Answer Session [No Q&A session for this event] Read the rest of this transcript for free on seekingalpha.com