W.W. GRAINGER, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
For the Fourth Quarter Ended December 31, 2005
(Unaudited)
Company Contacts:
| W. D. Chapman | 847-535-0881 |
Issued: January 26, 2006
Fourth Quarter Highlights
| • | Grainger reported record Fourth Quarter results: |
| • | Sales of $1.4 billion were up 10% versus 2004. |
| • | Operating earnings were $144.0 million, an increase of 15% versus 2004. |
| • | Earnings per share were $1.13, up 15% versus $0.98 in 2004. |
| • | Included in the $1.13 earnings per share for 2005 is a $0.10 benefit related to the resolution of certain tax contingencies. Included in the $0.98 earnings per share for 2004 is an $0.11 benefit related to the resolution of other tax contingencies. For 2006, the Company is projecting an effective tax rate of 38.9% versus the 2005 effective tax rate of 35.0%, which included the benefit mentioned above. |
Contents |
I. | EARNING REVIEW | | 2 |
II. | BALANCE SHEET DATA | | 4 |
III. | CASH FLOW DATA | | 5 |
IV. | BUSINESS SEGMENT RESULTS | | 6 |
| | | |
| EXHIBITS | | |
| A. Daily Sales Growth by Segment | | 9 |
| B. Sales by Segment | | 10 |
| C. Operating Earnings by Segment | | 12 |
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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| Net Sales |
| Three Months Ended | | Full Year Ended |
| ($ in millions) |
| 12/31/05 | | 12/31/04 | | Inc/(Dec) | | 12/31/05 | | 13/31/04 | | Inc/(Dec) |
Net Sales | $ 1,391 | | $ 1,265 | | 10% | | $ 5,527 | | $ 5,050 | | 9% |
| | | Sales Days | | 2005 | | 2004 | | |
| | | Fourth Quarter | | 63 | | 63 | | |
| | | Total Year | | 255 | | 255 | | |
| | | | | | | | | | | | |
Sales in the fourth quarter benefited from a strong North American economy and ongoing strategic initiatives.
| | Daily Sales Inc/(Dec) 2005 vs. 2004 |
2005 Month | | Total Company | | Branch-based Distribution | | Lab Safety |
October | | 11.3% | | | 11.0% | | | 15.7% | |
November | | 10.0% | | | 9.6% | | | 15.4% | |
December | | 8.4% | | | 7.8% | | | 18.1% | |
Fourth Quarter | | 9.9% | | | 9.5% | | | 16.4% | |
Full Year | | 9.4% | | | 9.2% | | | 12.9% | |
Sales were up 10% for the quarter driven by an increase in both segments. The increase in the Branch-based Distribution segment was led by strong sales to the government, contractor, manufacturing and natural resource sectors. Also contributing to the improvement was growth in the U.S. market expansion program. Partially offsetting these improvements was the negative effect of the wind-down of integrated supply and related automotive contracts. Lab Safety benefited from the 2005 acquisition of AW Direct.
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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| Operating Earnings |
| Three Months Ended | | Full Year Ended |
| ($ in millions) |
| 12/31/05 | 12/31/04 | Inc/(Dec) | 12/31/05 | 12/31/04 | Inc/(Dec) |
Operating Earnings | $144 | $125 | 15% | $519 | $441 | 18% |
Operating Margin | 10.4% | 9.9% | 0.5pp | 9.4% | 8.7% | 0.7pp |
ROIC* | | | | 25.9% | 24.2% | 1.7pp |
| | | | | | | | |
The Company’s operating earnings were $144 million for the fourth quarter of 2005 versus $125 million for the fourth quarter of 2004. The operating earnings improvement was from both the Branch-based Distribution and Lab Safety segments, partially offset by higher operating expenses at headquarters. Contributing to the increase in expenses at headquarters were increased payroll costs and a $1.0 million donation to the American Red Cross.
The increase in ROIC was attributable to higher operating earnings.
Other Income and Expense
For the 2005 fourth quarter, “Other Income and Expense” was $5.1 million of income versus $2.3 million of income for the 2004 quarter. The increase was primarily attributable to net interest income driven by higher average cash balances and interest rates.
Income Taxes
The Company’s effective income tax rate was 30.3% for the 2005 fourth quarter and 29.5% for the 2004 fourth quarter. The 2005 rate included tax benefits related to a favorable revision to the estimate of income taxes for various state taxing jurisdictions and the resolution of federal and state tax contingencies. These benefits increased earnings per share by $0.10.
For 2004, the effective tax rate included the effects of a lower tax rate in Canada and the realization of tax benefits related to operations in Mexico and to capital losses; these reduced the rate 2.0 percentage points. The remaining reduction in the 2004 rate, which increased earnings per share by $0.11, was primarily the result of realized capital loss carrybacks related to investments in securities and the resolution of federal and state tax contingencies.
For 2006, the Company is projecting an effective tax rate of 38.9%, excluding the effects of equity in unconsolidated entities, versus the 2005 effective tax rate of 35.0%, which included the benefit mentioned above.
*See footnote, page 8.
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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II. BALANCE SHEET DATA
Selected Balance Sheet data as of December 31, 2005 (preliminary) and 2004 follow:
| | 2005 | | 2004 |
ASSETS | | ($ in thousands) |
Cash and Cash Equivalents | | $ 544,894 | | $ 429,246 |
Accounts Receivable – net (1) | | 518,625 | | 480,893 |
Inventories (2) | | 791,212 | | 700,559 |
Other Current Assets | | 141,559 | | 144,015 |
Total Current Assets | | 1,996,290 | | 1,754,713 |
Property, Buildings and Equipment – net (3) | | 770,625 | | 761,573 |
Investments in Unconsolidated Entities | | 25,155 | | 26,126 |
All Other Assets (4) | | 314,696 | | 267,161 |
Total Assets | | $ 3,106,766 | | $ 2,809,573 |
| | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | |
Current Maturities of Long-Term Debt | | $ 4,590 | | $ 9,485 |
Trade Accounts Payable | | 319,254 | | 289,388 |
Other Current Liabilities | | 403,191 | | 363,561 |
Total Current Liabilities | | 727,035 | | 662,434 |
Long-Term Debt | | 4,895 | | - |
All Other Liabilities | | 85,507 | | 79,169 |
Shareholders’ Equity (5) | | 2,289,329 | | 2,067,970 |
Total Liabilities and Shareholders’ Equity | | $ 3,106,766 | | $ 2,809,573 |
(1) | Accounts receivable – net increased by $38 million, or 8%, due primarily to higher sales. |
(2) | Inventories increased by $91 million, or 13%, primarily in the Branch-based Distribution segment, due to volume increases, higher targeted service levels and market expansion. |
(3) | Property, buildings and equipment – net was up due to market expansion and technology initiatives. Depreciation and amortization of property, buildings, and equipment amounted to $27 million for the 2005 fourth quarter and $19 million for the 2004 fourth quarter. |
(4) | Other assets increased $48 million, or 18%, due primarily to intangibles from the acquisition of the assets of AW Direct and increased capitalized software. |
(5) | Common stock outstanding as of December 31, 2005 was 89,715,641 shares as compared with 90,597,427 shares at December 31, 2004. The Company repurchased 269,900 shares during the 2005 fourth quarter bringing the total for the year to 2.4 million shares. As of December 31, 2005, approximately 4.7 million shares of common stock remained under the current share repurchase authorization. |
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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III. CASH FLOW DATA
The following is a summarized cash flow statement for the twelve months ended
December 31, 2005 (preliminary) and 2004:
| Full Year Ended December 31, |
| ($ in thousands) |
| 2005 | | 2004 |
Cash Flows from Operating Activities: | | | |
Net Earnings | $ 346,324 | | $ 286,923 |
Depreciation and Amortization | 108,782 | | 98,256 |
(Income) in Unconsolidated Entities | (2,809) | | (996) |
(Increase) Decrease in Accounts Receivable – net | (35,146) | | (44,776) |
(Increase) Decrease in Inventories | (84,031) | | (30,728) |
(Increase) Decrease in Prepaid Expenses | (6,251) | | (9,087) |
Increase (Decrease) in Trade Accounts Payable | 27,121 | | 29,302 |
Increase (Decrease) in Other Current Liabilities | 47,690 | | 66,305 |
Other – net | 30,850 | | 11,288 |
| | | |
Net Cash Provided by Operating Activities | 432,530 | | 406,487 |
| | | |
Cash Flows from Investing Activities: | | | |
Additions to Property, Buildings and Equipment – net | (97,261) | | (110,660) |
Additions for Capitalized Software | (44,950) | | (32,482) |
Net Cash Paid for Business Acquisition | (24,723) | | - |
Other – net | 4,044 | | 750 |
| | | |
Net Cash Used in Investing Activities | (162,890) | | (142,392) |
| | | |
Cash Flows from Financing Activities: | | | |
Net Decrease in Long-Term Debt | - | | (140,800) |
Cash Dividends Paid and Purchase of Treasury Stock – net | (220,136) | | (172,115) |
Other – net | 65,997 | | 72,275 |
| | | |
Net Cash Used in Financing Activities | (154,139) | | (240,640) |
| | | |
Exchange Rate Effect on Cash and Cash Equivalents | 147 | | 2,967 |
| | | |
Net Increase in Cash and Cash Equivalents from beginning of year | $ 115,648 | | $ 26,422 |
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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IV. BUSINESS SEGMENT RESULTS
| BRANCH-BASED DISTRIBUTION |
| Three Months Ended | | Full Year Ended |
| ($ in millions) |
| 12/31/05 | 12/31/04 | Inc/(Dec) | | 12/31/05 | 12/31/04 | Inc/(Dec) |
Net Sales | $1,300 | $1,187 | 10% | | $5,150 | $4,716 | 9% |
Operating Earnings | $154 | $134 | 14% | | $537 | $466 | 15% |
Operating Margin | 11.8% | 11.3% | 0.5pp | | 10.4% | 9.9% | 0.5pp |
ROIC* | | | | | 28.7% | 27.3% | 1.4pp |
North American Branch Network
Number of Branches
| 2005 Fourth Quarter |
| 09/30/05 | | Opened | | Closed | | 12/31/05 |
United States | | | | | | | | | | | |
Branch | 398 | | | 3 | | | (1) | | | 400 | |
Will Call Express | 16 | | | 2 | | | - | | | 18 | |
Canada | 165 | | | 2 | | | (2) | | | 165 | |
Mexico | 6 | | | - | | | - | | | 6 | |
Total | 585 | | | 7 | | | (3) | | | 589 | |
| 2005 Year-to-Date |
| 12/31/04 | | Opened | | Closed | | 12/31/05 |
United States | | | | | | | | | | | |
Branch | 394 | | | 16 | | | (10) | | | 400 | |
Will Call Express | 16 | | | 5 | | | (3) | | | 18 | |
Canada | 166 | | | 6 | | | (7) | | | 165 | |
Mexico | 6 | | | - | | | - | | | 6 | |
Total | 582 | | | 27 | | | (20) | | | 589 | |
Net Sales – Sales for this segment were up 10% for the quarter benefiting from a strong North American economy and the positive results from ongoing strategic initiatives in the United States.
Sales in the United States were up 9% versus 2004 reflecting growth across most customer segments, led by the government, contractor, manufacturing and natural resource sectors. National account sales within all customer segments were up 11% for the quarter. The wind-down of integrated supply and related automotive contracts reduced sales by approximately 2 percentage points.
*See footnote, page 8.
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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BRANCH-BASED DISTRIBUTION (continued)
Results for the market expansion program were as follows:
| | Fourth Quarter |
| | Sales Increase 2005 vs. 2004 | | Estimate of Completion |
Phase 1 (Atlanta, Denver, Seattle) | | 15% | | 100% |
Phase 2 (Four markets in Southern California) | | 13% | | 90% |
Phase 3 (Houston, St. Louis, Tampa) | | 16% | | 70% |
Overall, market expansion contributed approximately 1 percentage point to the 10% sales growth.
Sales in Canada increased 15% for the quarter versus 2004 due to a stronger economy, primarily in the natural resources sector, and the effect of a favorable Canadian exchange rate. In local currency, sales for this business were up 11%.
Sales in Mexico were up 17% for the quarter versus 2004 driven by an expanded telesales operation, higher sales to national account customers and a stronger economy.
Operating Earnings – Branch-based operating earnings for the 2005 fourth quarter were up 14% compared with the 2004 period, the result of higher sales and improved gross profit margins, partially offset by operating expenses, which grew faster than sales. The market expansion initiative approached break-even from an operating earnings standpoint for the fourth quarter versus a loss in the 2004 quarter.
The gross profit margin was up 1.2 percentage points versus the comparable 2004 quarter. Contributing to the improvement in gross profit margin were selling price category mix and the positive effect of product mix, partially offset by higher freight costs and a lower margin in Canada. A major driver of the improvement in the selling price category mix was reduced sales to integrated supply and automotive customers.
The operating expense growth was primarily driven by increased costs related to market expansion and the SAP implementation, higher payroll costs, an increase in the number of sales representatives and higher sales commissions.
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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| LAB SAFETY |
| Three Months Ended | | Full Year Ended |
| ($ in millions) |
| 12/31/05 | 12/31/04 | Inc/(Dec) | | 12/31/05 | 12/31/04 | Inc/(Dec) |
Net Sales | $91 | $78 | 16% | | $380 | $337 | 13% |
Operating Earnings | $12 | $9 | 31% | | $53 | $45 | 16% |
Operating Margin | 13.1% | 11.6% | 1.5pp | | 13.9% | 13.5% | 0.4pp |
ROIC* | | | | | 36.6% | 37.4% | (0.8)pp |
Net Sales – Sales increased 16% for the quarter for Lab Safety, the Company’s direct marketing business, primarily due to the acquisition of AW Direct in January 2005. The rest of the business grew by 5% in the quarter.
Operating Earnings – Operating earnings for the 2005 fourth quarter were up 31%. The improvement in operating earnings was due to higher sales, improved earnings leverage and the benefit from the results of AW Direct.
*Footnote:
The GAAP financial statements are the source for all amounts used in the Return on Invested Capital (ROIC) calculation. ROIC is calculated using annualized operating earnings based on year-to-date operating earnings divided by a thirteen point average for net working assets. Net working assets are working assets minus working liabilities defined as follows: working assets equal total assets less cash equivalents (non-operating cash), deferred taxes, and investments in unconsolidated entities, plus the LIFO reserve. Working liabilities are the sum of trade payables, accrued compensation and benefits, accrued contributions to employees’ profit sharing plans, and accrued expenses.
Forward-Looking Statements
This document may contain forward-looking statements under the federal securities laws. The forward-looking statements relate to the Company’s expected future financial results and business plans, strategies and objectives and are not historical facts. They are generally identified by qualifiers such as “estimate of completion” , “projecting” or similar expressions. There are risks and uncertainties the outcome of which could cause the Company’s results to differ materially from what is projected. The forward-looking statements should be read in conjunction with the Company’s most recent annual report, as well as the Company’s Form 10-K and other reports filed with the Securities and Exchange Commission, containing a discussion of the Company’s business and of various factors that may affect it.
–End–
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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EXHIBIT A
Daily Sales Growth
By Segment
| | 2005 vs. 2004 | | 2004 vs. 2003 |
Month | | Company | Branch-based Distribution | Lab Safety | | Company | Branch-based Distribution | Lab Safety |
January | | 10.4% | | 10.9% | | 3.0% | | | 4.7% | | 3.8% | | 19.6% | |
February | | 10.3% | | 10.0% | | 15.2% | | | 5.9% | | 5.1% | | 17.4% | |
March | | 5.9% | | 5.6% | | 8.7% | | | 7.4% | | 6.8% | | 16.6% | |
First Quarter | | 8.7% | | 8.7% | | 9.0% | | | 6.1% | | 5.3% | | 18.1% | |
| | | | | | | | | | | | | | |
April | | 11.6% | | 11.2% | | 15.6% | | | 6.1% | | 5.6% | | 12.0% | |
May | | 5.6% | | 5.1% | | 13.7% | | | 8.6% | | 8.7% | | 5.9% | |
June | | 10.5% | | 10.5% | | 11.5% | | | 6.6% | | 6.5% | | 7.2% | |
Second Quarter | | 9.3% | | 9.0% | | 13.6% | | | 7.1% | | 7.0% | | 8.3% | |
| | | | | | | | | | | | | | |
July | | 10.9% | | 10.9% | | 10.3% | | | 7.4% | | 7.0% | | 13.9% | |
August | | 9.2% | | 8.9% | | 13.8% | | | 8.9% | | 8.9% | | 8.7% | |
September | | 9.3% | | 9.0% | | 13.9% | | | 8.7% | | 8.9% | | 5.5% | |
Third Quarter | | 9.8% | | 9.6% | | 12.9% | | | 8.4% | | 8.3% | | 9.3% | |
| | | | | | | | | | | | | | |
October | | 11.3% | | 11.0% | | 15.7% | | | 9.7% | | 9.9% | | 6.3% | |
November | | 10.0% | | 9.6% | | 15.4% | | | 8.3% | | 8.7% | | 2.4% | |
December | | 8.4% | | 7.8% | | 18.1% | | | 16.2% | | 16.7% | | 8.4% | |
Fourth Quarter | | 9.9% | | 9.5% | | 16.4% | | | 11.3% | | 11.7% | | 5.7% | |
| | | | | | | | | | | | | | |
Full Year | | 9.4% | | 9.2% | | 12.9% | | | 8.2% | | 8.0% | | 10.2% | |
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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EXHIBIT B
Sales by Segment
($000’s)
4th Quarter |
| | Three Months ended December 31, 2005 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total net sales | | 1,300,118 | | 91,211 | | 1,391,329 |
Intersegment net sales | | (50) | | (673) | | (723) |
Net sales to external customers | | 1,300,068 | | 90,538 | | 1,390,606 |
| | Three Months ended December 31, 2004 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total net sales | | 1,187,306 | | 78,391 | | 1,265,697 |
Intersegment net sales | | (201) | | (541) | | (742) |
Net sales to external customers | | 1,187,105 | | 77,850 | | 1,264,955 |
2005 vs. 2004 | | | | | | |
Total net sales | | 9.5% | | 16.4% | | 9.9% |
Intersegment net sales | | -75.1% | | 24.4% | | -2.6% |
Net sales to external customers | | 9.5% | | 16.3% | | 9.9% |
Year |
| | Twelve Months ended December 31, 2005 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total net sales | | 5,150,213 | | 380,091 | | 5,530,304 |
Intersegment net sales | | (1,117) | | (2,551) | | (3,668) |
Net sales to external customers | | 5,149,096 | | 377,540 | | 5,526,636 |
| | Twelve Months ended December 31, 2004 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total net sales | | 4,716,207 | | 336,720 | | 5,052,927 |
Intersegment net sales | | (1,064) | | (2,078) | | (3,142) |
Net sales to external customers | | 4,715,143 | | 334,642 | | 5,049,785 |
2005 vs. 2004 | | | | | | |
Total net sales | | 9.2% | | 12.9% | | 9.4% |
Intersegment net sales | | 5.0% | | 22.8% | | 16.7% |
Net sales to external customers | | 9.2% | | 12.8% | | 9.4% |
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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EXHIBIT B
Sales by Segment
($000’s)
1st Quarter |
| | Three Months ended March 31, 2005 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total net sales | | 1,242,255 | | 93,483 | | 1,335,738 |
Intersegment net sales | | (214) | | (644) | | (858) |
Net sales to external customers | | 1,242,041 | | 92,839 | | 1,334,880 |
| | Three Months ended March 31, 2004 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total net sales | | 1,143,056 | | 85,779 | | 1,228,835 |
Intersegment net sales | | (610) | | (426) | | (1,036) |
Net sales to external customers | | 1,142,446 | | 85,353 | | 1,227,799 |
2005 vs. 2004 | | | | | | |
Total net sales | | 8.7% | | 9.0% | | 8.7% |
Intersegment net sales | | -64.9% | | 51.2% | | -17.2% |
Net sales to external customers | | 8.7% | | 8.8% | | 8.7% |
2nd Quarter |
| | Three Months ended June 30, 2005 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total net sales | | 1,276,084 | | 97,668 | | 1,373,752 |
Intersegment net sales | | (441) | | (503) | | (944) |
Net sales to external customers | | 1,275,643 | | 97,165 | | 1,372,808 |
| | Three Months ended June 30, 2004 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total net sales | | 1,170,563 | | 85,987 | | 1,256,550 |
Intersegment net sales | | (56) | | (520) | | (576) |
Net sales to external customers | | 1,170,507 | | 85,467 | | 1,255,974 |
2005 vs. 2004 | | | | | | |
Total net sales | | 9.0% | | 13.6% | | 9.3% |
Intersegment net sales | | 687.5% | | -3.3% | | 63.9% |
Net sales to external customers | | 9.0% | | 13.7% | | 9.3% |
3rd Quarter |
| | Three Months ended September 30, 2005 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total net sales | | 1,331,756 | | 97,729 | | 1,429,485 |
Intersegment net sales | | (412) | | (731) | | (1,143) |
Net sales to external customers | | 1,331,344 | | 96,998 | | 1,428,342 |
| | Three Months ended September 30, 2004 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total net sales | | 1,215,282 | | 86,563 | | 1,301,845 |
Intersegment net sales | | (197) | | (591) | | (788) |
Net sales to external customers | | 1,215,085 | | 85,972 | | 1,301,057 |
2005 vs. 2004 | | | | | | |
Total net sales | | 9.6% | | 12.9% | | 9.8% |
Intersegment net sales | | 109.1% | | 23.7% | | 45.1% |
Net sales to external customers | | 9.6% | | 12.8% | | 9.8% |
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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EXHIBIT C
Operating Earnings by Segment
($000’s)
4th Quarter |
| | Three Months ended December 31, 2005 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total operating earnings | | 153,852 | | 11,935 | | 165,787 |
Unallocated expenses and eliminations | | - | | - | | (21,830) |
Total consolidated operating earnings | | 153,852 | | 11,935 | | 143,957 |
| | Three Months ended December 31, 2004 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total operating earnings | | 134,489 | | 9,085 | | 143,574 |
Unallocated expenses and eliminations | | - | | - | | (18,113) |
Total consolidated operating earnings | | 134,489 | | 9,085 | | 125,461 |
2005 vs. 2004 | | 14.4% | | 31.4% | | 14.7% |
Year |
| | Twelve Months ended December 31, 2005 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total operating earnings | | 536,641 | | 52,712 | | 589,353 |
Unallocated expenses and eliminations | | - | | - | | (70,364) |
Total consolidated operating earnings | | 536,641 | | 52,712 | | 518,989 |
| | Twelve Months ended December 31, 2004 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total operating earnings | | 465,545 | | 45,467 | | 511,012 |
Unallocated expenses and eliminations | | - | | - | | (69,758) |
Total consolidated operating earnings | | 465,545 | | 45,467 | | 441,254 |
2005 vs. 2004 | | 15.3% | | 15.9% | | 17.6% |
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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EXHIBIT C
Operating Earnings by Segment
($000’s)
1st Quarter |
| | Three Months ended March 31, 2005 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total operating earnings | | 113,145 | | 13,628 | | 126,773 |
Unallocated expenses and eliminations | | - | | - | | (13,816) |
Total consolidated operating earnings | | 113,145 | | 13,628 | | 112,957 |
| | Three Months ended March 31, 2004 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total operating earnings | | 107,098 | | 11,814 | | 118,912 |
Unallocated expenses and eliminations | | - | | - | | (18,212) |
Total consolidated operating earnings | | 107,098 | | 11,814 | | 100,700 |
2005 vs. 2004 | | 5.6% | | 15.4% | | 12.2% |
2nd Quarter |
| | Three Months ended June 30, 2005 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total operating earnings | | 130,001 | | 13,546 | | 143,547 |
Unallocated expenses and eliminations | | - | | - | | (17,354) |
Total consolidated operating earnings | | 130,001 | | 13,546 | | 126,193 |
| | Three Months ended June 30, 2004 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total operating earnings | | 113,568 | | 12,130 | | 125,698 |
Unallocated expenses and eliminations | | - | | - | | (18,330) |
Total consolidated operating earnings | | 113,568 | | 12,130 | | 107,368 |
2005 vs. 2004 | | 14.5% | | 11.7% | | 17.5% |
3rd Quarter |
| | Three Months ended September 30, 2005 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total operating earnings | | 139,643 | | 13,603 | | 153,246 |
Unallocated expenses and eliminations | | - | | - | | (17,364) |
Total consolidated operating earnings | | 139,643 | | 13,603 | | 135,882 |
| | Three Months ended September 30, 2004 |
| | Branch-based Distribution | | Lab Safety | | Totals |
Total operating earnings | | 110,390 | | 12,438 | | 122,828 |
Unallocated expenses and eliminations | | - | | - | | (15,103) |
Total consolidated operating earnings | | 110,390 | | 12,438 | | 107,725 |
2005 vs. 2004 | | 26.5% | | 9.4% | | 26.1% |
W.W. Grainger, Inc. Supplemental Financial Information for the Fourth Quarter Ended December 31, 2005
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