Grainger Gets Out Of Integrated Supply

Feb. 11, 2005
As announced late last year, in 2005 Grainger will no longer offer on-site integrated purchasing and tool crib management services.

As announced late last year, in 2005 Grainger will no longer offer on-site integrated purchasing and tool crib management services.

Beginning Jan. 1, 2005, Integrated Supply will no longer be reported as a separate segment. The business will be merged into Grainger’s Industrial Supply division within the Branch-based segment.

Grainger’s Industrial Supply division intends to offer customers an expanded menu of on-site services. The company plans to fulfill but not renew existing Integrated Supply contracts.

Daily sales for Integrated Supply were down 5 percent for the quarter due to the continued effect of disengagements of two large customers late in 2003, as well as lower sales to two large, existing customers. The segment had an operating loss of $1 million in the quarter as compared to earnings of $500,000 in the same period in 2003.

Grainger reported fourth-quarter sales of $1.26 billion, a gain of 10 percent from $1.15 billion a year earlier.

The company’s quarterly income was $90.1 million. A year ago, Grainger earned $61.7 million.

Grainger said sales at its branches rose 11 percent. Orders through its Web site totaled $157 million, up 27 percent from the year before.