Grainger Reports Q3 Sales +8%
[Thursday, October 18, 2012] Grainger has reported sales for the 2012 third quarter of $2.3 billion increased 8 percent versus $2.1 billion in the 2011 third quarter. There were 63 selling days in the quarter, one less than in 2011. Sales on a daily basis increased 10 percent versus the 2011 third quarter.
During the third quarter, the Company recorded a $70 million pre-tax reserve for a settlement in principle to resolve pricing disclosure issues relating to government contracts with General Services Administration (GSA) and United States Postal Service (USPS). The proposed settlement, which covers 12 years of sales to the GSA and 10 years of sales to the USPS, remains subject to the approval of the U.S. Department of Justice (DOJ). In addition, the company has established a $6 million pre-tax reserve for resolving tax, freight and miscellaneous billing issues with these government customers.
Excluding the reserve, net earnings increased 11 percent and earnings per share of $2.81 increased 12 percent. Including the reserve, reported net earnings for the third quarter decreased 15 percent to $155 million versus $182 million in 2011 and earnings per share of $2.15 decreased 14% versus $2.51 in 2011.
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