W.W. Grainger Inc., Chicago, reported a 14 percent increase in earnings for the first quarter ended March 31. Sales were $1.3 billion, up 9 percent over the prior year’s first quarter. Net earnings were up 16 percent to $72.8 million.
Grainger’s Chairman and Chief Executive Officer Richard L. Keyser said, “Overall in the first quarter we saw healthy sales growth in the government, manufacturing, transportation and commercial sectors, even though March sales showed some softness, particularly at the end of the month due to the timing of the Easter holiday.” He said the company’s market expansion program remains on track.
Keyser added that during the first quarter the company continued to invest in its SAP system. He said the company now expects to begin implementation in the first half of 2006. “When complete, the new system will provide us with a single, uniform platform that will help us better serve customers,” he said.
Sales in the branch-based distribution segment were up 9 percent in the 2005 first quarter. In the United States, sales were up 8 percent, with growth in all customer end markets, led by the manufacturing and commercial sectors.