Financial Snapshots

March 13, 2008
Several electrical manufacturers reported increases in 2007 sales.

Graybar Records $5.3 Billion 2007 Sales

Graybar Electric Co., St. Louis, enjoyed a five-percent increase in total sales in 2007. The company reported net sales totaling $5,258,301,000 in 2007, compared to $5,009,143,000 in 2006, an increase of $249,158,000. Net sales to the electrical market increased 3.8 percent, while net sales to the comm/data market increased eight percent in 2007 over 2006. According to the 10-K report the company filed on March 12 with the U.S. Securities and Exchange Commission (SEC), “Strong cash flow from operations in 2007 resulted from a 45.4 percent increase in net income.” The report said Graybar funded its capital expenditures with operational cash flow, while also substantially reducing long-term debt. The company’s year-end cash balances remained near historical highs.

WESCO Tops $6 billion In 2007 Sales

WESCO Distribution Inc., Pittsburgh, Pa., saw total 2007 revenues increase 12.8 percent, increasing from $5,320,603,000 in 2006 to $6,003,452,000 in 2007. According to the 10K report that WESCO filed with the SEC on Feb. 29, the company believes, “Acquisitions and improvements in operations and our capital structure made in 2006 and 2007 have positioned us well for 2008. We continue to see macroeconomic data and input from internal sales management, customers and suppliers that suggest activity levels in our major end markets will be somewhat softer than that experienced in 2007.

“We believe there are opportunities in the industrial and commercial construction end markets, and that we are well positioned to participate in these large fragmented markets. Our strong market position, combined with our continued focus on margin, productivity improvement and selling and marketing initiatives, should provide us with a competitive advantage and enable us to perform well throughout 2008.”

Grainger’s Sales Grow 9 Percent In 2007

W.W. Grainger Inc., Lake Forest, Ill., set a sales record with net sales of $6,418,014,000 for 2007, an increase of 9.1 percent compared with its 2006 net sales of $5,883,654,000 for 2006. Richard L. Keyser, the company’s chairman and CEO, said the company would hit its previously announced earnings-per-share targets for 2008. “While we’re aware of the concerns many have with the economic outlook for 2008, we remain comfortable that actions we’ve taken should allow us to deliver our forecasted 2008 earnings per share of $5.65 to $6 as announced in November 2007.” The company’s gross profit margin for 2007 improved less than one percentage point to 40.6 percent from 40 percent in 2006. Operating earnings for 2007 totaled $670.7 million, an increase of 16 percent over 2006. For 2008, Grainger anticipates total capital expenditures of $175 million to $200 million. Grainger intends to continue its investment in the market expansion program and information technology.