W.W. GRAINGER, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
For the First Quarter Ended March 31, 2006
(Unaudited)
| | | | Company Contacts: |
| | | | W. D. Chapman | 847-535-0881 |
| | | | N. A. Hobor | 847-535-0065 |
| | | | Issued: April 17, 2006 |
First Quarter Highlights
| • | Sales of $1.4 billion were up 6% versus 2005. |
| • | Operating earnings for the quarter were $134 million, an increase of 19% versus 2005. |
| • | Earnings per share for the quarter were $0.93, up 18% versus $0.79 in 2005. |
| • | As a result of recent system enhancements, the first quarter benefited $0.05 per share due to the improved methodology to capture data related to certain inventory transactions and estimates that would have been recorded in the fourth quarter of 2006. |
| • | Effective January 1, 2006, earnings reflect the adoption of SFAS No. 123R* for the accounting of employee stock-based compensation. The effect of the adoption was approximately $0.03 per share reduction for the quarter. |
| • | Beginning January 1, 2006, the Company revised its segment reporting from two reportable segments to three reportable segments (Grainger Branch-based, Acklands-Grainger Branch-based, Lab Safety). Prior periods have been restated for comparability. |
Contents |
I. | EARNING REVIEW | | 2 |
II. | BALANCE SHEET DATA | | 4 |
III. | CASH FLOW DATA | | 5 |
IV. | BUSINESS SEGMENT RESULTS | | 6 |
| | | |
| EXHIBITS | | |
| A. Daily Sales Growth by Segment | | 10 |
| B. Sales by Segment | | 11 |
| C. Operating Earnings by Segment | | 12 |
| D. Sales by Segment 2005 vs. 2004 | | 13 |
| E. Operating Earnings by Segment 2005 vs. 2004 | | 15 |
* Statement of Financial Accounting Standards No. 123 (revised 2004) “Share-Based Payment”
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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| | Net Sales |
| | Three Months Ended |
| | ($ in millions) |
| | 03/31/06 | | 03/31/05 | | Inc/(Dec) |
| Net Sales | $ 1,419 | | $ 1,335 | | 6% |
| | | | | | |
| | Sales Days | | 2006 | | 2005 | |
| | First Quarter | | 64 | | 64 | |
| | Total Year | | 254 | | 255 | |
| | | | | | | | | |
Sales in the first quarter benefited from the economy, ongoing strategic initiatives and a favorable Canadian exchange rate. Partially contributing to the increase was the positive effect from the timing of the Easter holiday, which falls into the second quarter of 2006 versus the first quarter of 2005. Partially offsetting these improvements was the negative effect of the wind-down of lower margin integrated supply and automotive contracts, which reduced sales approximately 2 percentage points.
Beginning January 1, 2006, the Company revised its segment reporting from two reportable segments to three reportable segments. Prior periods have been restated for comparability.
| | Daily Sales Inc/(Dec) 2006 vs. 2005 |
2006 Month | | Total Company | | Grainger Branch-based | | Acklands-Grainger Branch-based | | Lab Safety |
January | | 6.1% | | 3.8% | | 20.0% | | 19.5% |
February | | 4.6 | | 3.1 | | 21.2 | | 1.7 |
March | | 8.0 | | 6.7 | | 15.5 | | 13.1 |
First Quarter | | 6.3 | | 4.6 | | 18.7 | | 11.1 |
Sales were up 6% driven by increases across all three segments. The increase in the Grainger Branch-based segment was primarily driven by strengthening manufacturing and reseller sectors, partially offset by lower sales of seasonal products. Acklands-Grainger benefited from growth in the energy, mining and government sectors as well as a favorable exchange rate. Lab Safety benefited from the acquisition of the Rand Materials Handling Equipment Co. business (Rand). For all three segments, March sales were positively affected by the timing of the Easter holiday.
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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Operating Earnings
| | Three Months Ended |
| | ($ in millions) |
| | 03/31/06 | | 03/31/05 | | Inc/(Dec) |
| Operating Earnings | $ 134 | | $ 113 | | 19% |
| Operating Margin | 9.5% | | 8.5% | | 1.0pp |
| ROIC* | 25.4% | | 23.2% | | 2.2pp |
| | | | | | |
The Company’s operating earnings were $134 million for the first quarter of 2006 versus $113 million for the first quarter of 2005. All three segments achieved improved operating earnings. The operating earnings improvement reflected higher gross profit margins in each segment. Partially offsetting these improvements were higher segment and headquarters operating expenses driven by payroll and benefits, primarily the result of increased headcount, higher stock-based compensation expense due to the adoption of SFAS No. 123R and higher profit sharing accruals.
The increase in ROIC was primarily attributable to higher operating earnings, partially offset by lower asset turnover.
Other Income and Expense
For the 2006 first quarter, “Other Income and Expense” was income of $6.0 million versus $2.3 million for the 2005 quarter. The increase was primarily attributable to higher interest income in 2006 versus 2005 and an improvement in the results of unconsolidated entities.
Income Taxes
The Company’s effective income tax rate was 38.6% for the 2006 first quarter and 36.9% for the 2005 first quarter. Excluding the effect of equity in unconsolidated entities, which is recorded net of tax, the effective income tax rate was 38.9% for the first quarter of 2006 and 37.0% for the first quarter of 2005. The full year 2005 rate was 35.0% and benefited from a favorable revision to the estimate of income taxes for various state and local taxing jurisdictions and the resolution of certain federal and state tax contingencies.
*See footnote, page 9.
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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II. BALANCE SHEET DATA
Selected Balance Sheet data as of March 31, 2006 (preliminary) and 2005 follow:
| | 2006 | | 2005 |
ASSETS | | ($ in thousands) |
Cash and Cash Equivalents | | $ 493,883 | | $ 369,496 |
Accounts Receivable – net (1) | | 569,600 | | 520,228 |
Inventories (2) | | 805,591 | | 741,754 |
Other Current Assets | | 149,048 | | 153,002 |
Total Current Assets | | 2,018,122 | | 1,784,480 |
Property, Buildings and Equipment – net (3) | | 775,820 | | 759,395 |
Investments in Unconsolidated Entities | | 30,158 | | 26,244 |
All Other Assets (4) | | 325,232 | | 282,946 |
Total Assets | | $ 3,149,332 | | $ 2,853,065 |
| | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | |
Current Maturities of Long-Term Debt | | $ 4,590 | | $ 9,485 |
Trade Accounts Payable | | 357,875 | | 334,956 |
Other Current Liabilities | | 336,505 | | 303,480 |
Total Current Liabilities | | 698,970 | | 647,921 |
Long-Term Debt | | 4,895 | | – |
All Other Liabilities | | 92,444 | | 83,427 |
Shareholders’ Equity (5) | | 2,353,023 | | 2,121,717 |
Total Liabilities and Shareholders’ Equity | | $ 3,149,332 | | $ 2,853,065 |
(1) | Accounts receivable-net increased by $49 million, or 9%, primarily due to higher sales. |
(2) | Inventories increased by $64 million, or 9%, primarily in the Grainger Branch-based segment, due to volume increases and the product line expansion program. |
(3) | Depreciation and amortization of property, buildings, and equipment amounted to $23 million for both the 2006 and 2005 first quarters. |
(4) | Other assets increased $42 million or 15% due primarily to increased capitalized software and intangibles from the acquisition of the assets of Rand. |
(5) | Common stock outstanding as of March 31, 2006 was 89,769,312 shares as compared with 90,684,696 shares at March 31, 2005. The Company repurchased 461,400 shares during the 2006 first quarter. As of March 31, 2006, approximately 4.2 million shares of common stock remained under the current share repurchase authorization. |
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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III. CASH FLOW DATA
The following is a summarized cash flow statement for the three months ended
March 31, 2006 (preliminary) and 2005:
| Three Months Ended March 31, |
| ($ in thousands) |
| 2006 | | 2005 |
Cash Flows from Operating Activities: | | | |
Net Earnings | $ 86,233 | | $ 72,792 |
Depreciation and Amortization | 27,117 | | 26,434 |
(Income) Losses in Unconsolidated Entities | (1,207) | | (420) |
(Increase) Decrease in Accounts Receivable – net | (50,576) | | (39,256) |
(Increase) Decrease in Inventories | (14,256) | | (39,655) |
(Increase) Decrease in Prepaid Expenses | (4,411) | | (7,543) |
Increase (Decrease) in Trade Accounts Payable | 36,424 | | 43,731 |
Increase (Decrease) in Other Current Liabilities | (112,565) | | (82,520) |
Other – net | 60,117 | | 39,125 |
| | | |
Net Cash Provided by Operating Activities | 26,876 | | 12,688 |
| | | |
Cash Flows from Investing Activities: | | | |
Additions to Property, Buildings
and Equipment – net | (28,632) | | (16,931) |
Additions to Capitalized Software | (1,536) | | (10,673) |
Net Cash Paid for Business Acquisition | (14,327) | | (24,838) |
Other – net | (4,058) | | 23 |
| | | |
Net Cash Used in Investing Activities | (48,553) | | (52,419) |
| | | |
Cash Flows from Financing Activities: | | | |
Cash Dividends Paid | (21,591) | | (18,235) |
Purchase of Treasury Stock – net | (35,851) | | (15,232) |
Other – net | 28,067 | | 13,612 |
| | | |
Net Cash Used in Financing Activities | (29,375) | | (19,855) |
| | | |
Exchange Rate Effect on Cash and Cash Equivalents | 41 | | (164) |
| | | |
Net (Decrease) in Cash and Cash Equivalents from beginning of year | $ (51,011) | |
$ (59,750)
|
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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IV. BUSINESS SEGMENT RESULTS
GRAINGER BRANCH-BASED
| Three Months Ended |
| ($ in millions) |
| 03/31/06 | | 03/31/05 | | Inc/(Dec) |
| Net Sales | $1,177 | | $ 1,125 | | 5% |
| Operating Earnings | $ 133 | | $ 110 | | 21% |
| Operating Margin | 11.3% | | 9.8% | | 1.5pp |
| ROIC* | 32.4% | | 28.7% | | 3.7pp |
| Number of Branches |
| |
| 2006 First Quarter |
| 12/31/05 | | Opened | | Closed | | 03/31/06 |
| United States ** | | | | | | | |
| Branch | 400 | | – | | – | | 400 |
| Will Call Express | 18 | | – | | – | | 18 |
| Mexico | 6 | | – | | – | | 6 |
| Total | 424 | | – | | – | | 424 |
| **No branch openings were scheduled during the quarter due to the SAP implementation. |
Net Sales – Sales for this segment were up 5% for the quarter, primarily reflecting the stronger U.S. and Mexican economies and ongoing strategic initiatives. Also contributing to the increase was the positive effect from the timing of the Easter holiday, which falls in the second quarter of 2006 versus the first quarter of 2005. Partially offsetting these improvements were reduced integrated supply and automotive sales.
Sales in the United States were up 5% versus 2005 reflecting growth across all customer segments, led by the manufacturing and reseller sectors. Partially offsetting these improvements were slower growth in commercial, government and transportation sectors. The Company’s decision to wind-down its lower margin integrated supply and automotive contracts reduced sales growth by 3 percentage points. Lower sales of seasonal products also reduced sales growth by 1 percentage point.
*See footnote, page 9.
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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GRAINGER BRANCH-BASED (continued)
Market expansion contributed 2 percentage points to the 5% sales growth for the segment. Results for the market expansion program were as follows:
| | 2006 First Quarter |
| | Sales Increase | | Percent Complete |
| Phase 1 (Atlanta, Denver, Seattle) | | 11% | | 100% |
| Phase 2 (Four markets in Southern California) | | 13% | | 90% |
| Phase 3 (Houston, St. Louis, Tampa) | | 13% | | 70% |
Sales in Mexico were up 23% for the quarter versus 2005 driven by an improving economy, an expanded telesales operation, increased direct marketing efforts and a favorable exchange rate. In local currency, sales were up 17%.
Operating Earnings – Operating earnings for the 2006 first quarter were up 21% compared with the 2005 period, the result of higher sales and increased gross profits, partially offset by operating expenses, which grew faster than sales.
The gross profit margin was up 3.3 percentage points versus the comparable 2005 quarter driven by positive inflation recovery, a positive change in selling price category mix and changes in the timing of certain inventory-related transactions and estimates. A major driver in the improvement in selling price category mix was the reduced sales to lower margin integrated supply and automotive customers. Gross profit margins benefited from the improved methodology to capture data related to certain inventory transactions and estimates that would have been recorded in the fourth quarter of 2006, as a result of recent system enhancements.
The operating expense growth was primarily driven by increased costs related to spending on the SAP implementation, higher stock-based compensation expense due to the adoption of SFAS No. 123R and higher profit sharing accruals. Also contributing to the expense growth were higher payroll costs driven by increased headcount.
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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ACKLANDS-GRAINGER BRANCH-BASED
| Three Months Ended |
| ($ in millions) |
| 03/31/06 | | 03/31/05 | | Inc/(Dec) |
| Net Sales | $ 139 | | $ 117 | | 19% |
| Operating Earnings | $ 4 | | $ 3 | | 18% |
| Operating Margin | 2.8% | | 2.8% | | – pp |
| ROIC* | 4.8% | | 4.6% | | 0.2pp |
| |
| Number of Branches |
| |
| 2006 First Quarter |
| 12/31/05 | | Opened | | Closed | | 03/31/06 |
| | | | | | | |
| Canada | 165 | | 1 | | (2) | | 164 |
| | | | | | | | |
Net Sales – Sales in Canada increased 19% for the quarter versus 2005 including the effect of a favorable Canadian exchange rate. In local currency, sales for this business were up 12% due to a stronger economy, improved branch presence, higher sales to the energy, mining and government customers, as well as from the timing of the Easter holiday.
Operating Earnings – Operating earnings for the 2006 first quarter were up 18% compared with the 2005 period, the result of higher sales and increased gross profits, partially offset by operating expenses, which grew faster than sales.
The gross profit margin was up 0.4pp versus the comparable 2005 quarter. Contributing to the improvement was positive inflation recovery, partially offset by higher freight costs.
The operating expense growth was primarily driven by payroll and benefits due to increased headcount and incremental expenses related to the SAP implementation.
*See footnote, page 9.
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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LAB SAFETY
| Three Months Ended |
| ($ in millions) |
| 03/31/06 | | 03/31/05 | | Inc/(Dec) |
| Net Sales | $ 104 | | $ 93 | | 11% |
| Operating Earnings | $ 15 | | $ 14 | | 12% |
| Operating Margin | 14.7% | | 14.6% | | 0.1pp |
| ROIC* | 38.2% | | 40.1% | | (1.9)pp |
Net Sales – Sales increased 11% for the quarter for Lab Safety, the Company’s direct marketing business, including the benefit of incremental sales from the acquisition of Rand on January 31, 2006. Excluding the Rand acquisition, sales increased 8% versus 2005 driven primarily by strong sales to the manufacturing sector.
Operating Earnings – Operating earnings for the 2006 first quarter were up 12%. The improvement in operating earnings was due to improved gross profit margins, partially offset by increased operating expenses. Increased operating expenses were driven by higher healthcare costs and incremental costs from the acquisition of Rand.
*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 four 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 contains 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 “percent complete”, “may”, “estimated”, “projected” 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 First Quarter Ended March 31, 2006
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EXHIBIT A Daily Sales Growth By Segment |
| | 2006 vs. 2005 | | 2005 vs. 2004 |
Month | | Company | Grainger Branch-based | Acklands-Grainger Branch-based | Lab Safety | | Company | Grainger Branch-based | Acklands-Grainger Branch-based | Lab Safety |
January | | 6.1% | 3.8% | 20.0% | 19.5% | | 10.4% | 10.9% | 10.9% | 3.0% |
February | | 4.6% | 3.1% | 21.2% | 1.7% | | 10.3% | 9.7% | 12.8% | 15.2% |
March | | 8.0% | 6.7% | 15.5% | 13.1% | | 5.9% | 4.9% | 12.6% | 8.7% |
First Quarter | | 6.3% | 4.6% | 18.7% | 11.1% | | 8.7% | 8.3% | 12.1% | 9.0% |
| | | | | | | | | | |
April | | | | | | | 11.6% | 10.3% | 20.2% | 15.6% |
May | | | | | | | 5.6% | 3.9% | 15.9% | 13.7% |
June | | | | | | | 10.5% | 9.4% | 21.2% | 11.5% |
Second Quarter | | | | | | | 9.3% | 8.0% | 19.2% | 13.6% |
| | | | | | | | | | |
July | | | | | | | 10.9% | 10.5% | 15.4% | 10.3% |
August | | | | | | | 9.2% | 8.3% | 16.1% | 13.8% |
September | | | | | | | 9.3% | 8.2% | 16.6% | 13.9% |
Third Quarter | | | | | | | 9.8% | 8.9% | 16.0% | 12.9% |
| | | | | | | | | | |
October | | | | | | | 11.3% | 10.9% | 11.6% | 15.7% |
November | | | | | | | 10.0% | 9.0% | 14.6% | 15.4% |
December | | | | | | | 8.4% | 6.7% | 19.3% | 18.1% |
Fourth Quarter | | | | | | | 9.9% | 8.9% | 15.0% | 16.4% |
| | | | | | | | | | |
Full Year | | | | | | | 9.4% | 8.5% | 15.6% | 12.9% |
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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EXHIBIT B Sales by Segment ($000’s) |
1st Quarter | | | | | | | | |
| | Three Months Ended March 31, 2006 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 1,177,141 | | 139,022 | | 103,879 | | 1,420,042 |
Intersegment net sales | | (315) | | - | | (610) | | (925) |
Net sales to external customers | | 1,176,826 | | 139,022 | | 103,269 | | 1,419,117 |
| | Three Months Ended March 31, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 1,125,237 | | 117,163 | | 93,483 | | 1,335,883 |
Intersegment net sales | | (359) | | - | | (644) | | (1,003) |
Net sales to external customers | | 1,124,878 | | 117,163 | | 92,839 | | 1,334,880 |
2006 vs. 2005 | | | | | | | | |
Total net sales | | 4.6% | | 18.7% | | 11.1% | | 6.3% |
Intersegment net sales | | -12.3% | | 0.0% | | -5.3% | | -7.8% |
Net sales to external customers | | 1.6% | | 18.7% | | 11.2% | | 6.3% |
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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EXHIBIT C Operating Earnings by Segment ($000’s) |
1st Quarter | | | | | | | | |
| | Three Months Ended March 31, 2006 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 132,852 | | 3,878 | | 15,227 | | 151,957 |
Unallocated expenses and eliminations | | - | | - | | - | | (17,540) |
Total consolidated operating earnings | | 132,852 | | 3,878 | | 15,227 | | 134,417 |
| | Three Months Ended March 31, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 109,869 | | 3,276 | | 13,628 | | 126,773 |
Unallocated expenses and eliminations | | - | | - | | - | | (13,816) |
Total consolidated operating earnings | | 109,869 | | 3,276 | | 13,628 | | 112,957 |
2006 vs. 2005 | | 20.9% | | 18.4% | | 11.7% | | 19.0% |
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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EXHIBIT D Sales by Segment 2005 vs. 2004 ($000’s) |
1st Quarter | | | | | | | | |
| | Three Months Ended March 31, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 1,125,237 | | 117,163 | | 93,483 | | 1,335,883 |
Intersegment net sales | | (359) | | - | | (644) | | (1,003) |
Net sales to external customers | | 1,124,878 | | 117,163 | | 92,839 | | 1,334,880 |
| | Three Months Ended March 31, 2004 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 1,038,556 | | 104,500 | | 85,779 | | 1,228,835 |
Intersegment net sales | | (610) | | - | | (426) | | (1,036) |
Net sales to external customers | | 1,037,946 | | 104,500 | | 85,353 | | 1,227,799 |
2005 vs. 2004 | | | | | | | | |
Total net sales | | 8.3% | | 12.1% | | 9.0% | | 8.7% |
Intersegment net sales | | -41.1% | | 0.0% | | 51.2% | | -3.2% |
Net sales to external customers | | 8.4% | | 12.1% | | 8.8% | | 8.7% |
2nd Quarter | | | | | | | | |
| | Three Months Ended June 30, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 1,146,819 | | 129,609 | | 97,668 | | 1,374,096 |
Intersegment net sales | | (785) | | - | | (503) | | (1,288) |
Net sales to external customers | | 1,146,034 | | 129,609 | | 97,165 | | 1,372,808 |
| | Three Months Ended June 30, 2004 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 1,062,245 | | 108,739 | | 85,987 | | 1,256,971 |
Intersegment net sales | | (477) | | - | | (520) | | (997) |
Net sales to external customers | | 1,061,768 | | 108,739 | | 85,467 | | 1,255,974 |
2005 vs. 2004 | | | | | | | | |
Total net sales | | 8.0% | | 19.2% | | 13.6% | | 9.3% |
Intersegment net sales | | 64.6% | | 0.0% | | -3.3% | | 29.2% |
Net sales to external customers | | 7.9% | | 19.2% | | 13.7% | | 9.3% |
3rd Quarter | | | | | | | | |
| | Three Months Ended September 30, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 1,207,441 | | 124,580 | | 97,729 | | 1,429,750 |
Intersegment net sales | | (677) | | - | | (731) | | (1,408) |
Net sales to external customers | | 1,206,764 | | 124,580 | | 96,998 | | 1,428,342 |
| | Three Months Ended September 30, 2004 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 1,108,373 | | 107,355 | | 86,563 | | 1,302,291 |
Intersegment net sales | | (643) | | - | | (591) | | (1,234) |
Net sales to external customers | | 1,107,730 | | 107,355 | | 85,972 | | 1,301,057 |
2005 vs. 2004 | | | | | | | | |
Total net sales | | 8.9% | | 16.0% | | 12.9% | | 9.8% |
Intersegment net sales | | 5.3% | | 0.0% | | 23.7% | | 14.1% |
Net sales to external customers | | 8.9% | | 16.0% | | 12.8% | | 9.8% |
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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EXHIBIT D Sales by Segment 2005 vs. 2004 ($000’s) |
4th Quarter | | | | | | | | |
| | Three Months Ended December 31, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 1,169,703 | | 130,670 | | 91,211 | | 1,391,584 |
Intersegment net sales | | (305) | | - | | (673) | | (978) |
Net sales to external customers | | 1,169,398 | | 130,670 | | 90,538 | | 1,390,606 |
| | Three Months Ended December 31, 2004 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 1,074,070 | | 113,664 | | 78,391 | | 1,266,125 |
Intersegment net sales | | (629) | | - | | (541) | | (1,170) |
Net sales to external customers | | 1,073,441 | | 113,664 | | 77,850 | | 1,264,955 |
2005 vs. 2004 | | | | | | | | |
Total net sales | | 8.9% | | 15.0% | | 16.4% | | 9.9% |
Intersegment net sales | | -51.5% | | 0.0% | | 24.4% | | -16.4% |
Net sales to external customers | | 8.9% | | 15.0% | | 16.3% | | 9.9% |
Year | | | | | | | | |
| | Twelve Months Ended December 31, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 4,649,200 | | 502,022 | | 380,091 | | 5,531,313 |
Intersegment net sales | | (2,126) | | - | | (2,551) | | (4,677) |
Net sales to external customers | | 4,647,074 | | 502,022 | | 377,540 | | 5,526,636 |
| | Twelve Months Ended December 31, 2004 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total net sales | | 4,283,244 | | 434,258 | | 336,720 | | 5,054,222 |
Intersegment net sales | | (2,359) | | - | | (2,078) | | (4,437) |
Net sales to external customers | | 4,280,885 | | 434,258 | | 334,642 | | 5,049,785 |
2005 vs. 2004 | | | | | | | | |
Total net sales | | 8.5% | | 15.6% | | 12.9% | | 9.4% |
Intersegment net sales | | -9.9% | | 0.0% | | 22.8% | | 5.4% |
Net sales to external customers | | 8.6% | | 15.6% | | 12.8% | | 9.4% |
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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EXHIBIT E Operating Earnings by Segment 2005 vs. 2004 ($000’s) |
1st Quarter | | | | | | | | |
| | Three Months Ended March 31, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 109,869 | | 3,276 | | 13,628 | | 126,773 |
Unallocated expenses and eliminations | | - | | - | | - | | (13,816) |
Total consolidated operating earnings | | 109,869 | | 3,276 | | 13,628 | | 112,957 |
| | Three Months Ended March 31, 2004 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 103,310 | | 3,788 | | 11,814 | | 118,912 |
Unallocated expenses and eliminations | | - | | - | | - | | (18,212) |
Total consolidated operating earnings | | 103,310 | | 3,788 | | 11,814 | | 100,700 |
2005 vs. 2004 | | 6.3% | | -13.5% | | 15.4% | | 12.2% |
2nd Quarter | | | | | | | | |
| | Three Months Ended June 30, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 125,509 | | 4,492 | | 13,546 | | 143,547 |
Unallocated expenses and eliminations | | - | | - | | - | | (17,354) |
Total consolidated operating earnings | | 125,509 | | 4,492 | | 13,546 | | 126,193 |
| | Three Months Ended June 30, 2004 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 107,318 | | 6,250 | | 12,130 | | 125,698 |
Unallocated expenses and eliminations | | - | | - | | - | | (18,330) |
Total consolidated operating earnings | | 107,318 | | 6,250 | | 12,130 | | 107,368 |
2005 vs. 2004 | | 17.0% | | -28.1% | | 11.7% | | 17.5% |
3rd Quarter | | | | | | | | |
| | Three Months Ended September 30, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 136,242 | | 3,401 | | 13,603 | | 153,246 |
Unallocated expenses and eliminations | | - | | - | | - | | (17,364) |
Total consolidated operating earnings | | 136,242 | | 3,401 | | 13,603 | | 135,882 |
| | Three Months Ended September 30, 2004 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 104,001 | | 6,389 | | 12,438 | | 122,828 |
Unallocated expenses and eliminations | | - | | - | | - | | (15,103) |
Total consolidated operating earnings | | 104,001 | | 6,389 | | 12,438 | | 107,725 |
2005 vs. 2004 | | 31.0% | | -46.8% | | 9.4% | | 26.1% |
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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EXHIBIT E Operating Earnings by Segment 2005 vs. 2004 ($000’s) |
4th Quarter | | | | | | | | |
| | Three Months Ended December 31, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 151,017 | | 2,835 | | 11,935 | | 165,787 |
Unallocated expenses and eliminations | | - | | - | | - | | (21,830) |
Total consolidated operating earnings | | 151,017 | | 2,835 | | 11,935 | | 143,957 |
| | Three Months Ended December 31, 2004 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 129,948 | | 4,541 | | 9,085 | | 143,574 |
Unallocated expenses and eliminations | | - | | - | | - | | (18,113) |
Total consolidated operating earnings | | 129,948 | | 4,541 | | 9,085 | | 125,461 |
2005 vs. 2004 | | 16.2% | | -37.6% | | 31.4% | | 14.7% |
Year | | | | | | | | |
| | Twelve Months Ended December 31, 2005 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 522,637 | | 14,004 | | 52,712 | | 589,353 |
Unallocated expenses and eliminations | | - | | - | | - | | (70,364) |
Total consolidated operating earnings | | 522,637 | | 14,004 | | 52,712 | | 518,989 |
| | Twelve Months Ended December 31, 2004 |
| | Grainger Branch-based | | Acklands - Grainger Branch-based | | Lab Safety | | Totals |
Total operating earnings | | 444,577 | | 20,968 | | 45,467 | | 511,012 |
Unallocated expenses and eliminations | | - | | - | | - | | (69,758) |
Total consolidated operating earnings | | 444,577 | | 20,968 | | 45,467 | | 441,254 |
2005 vs. 2004 | | 17.6% | | -33.2% | | 15.9% | | 17.6% |
W.W. Grainger, Inc. Supplemental Financial Information for the First Quarter Ended March 31, 2006
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