MAIN, GERMANY / ACCESSWIRE / July 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on W.W. Grainger, Inc. (NYSE: GWW) ("Grainger"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=GWW, following the Company's release of its second quarter (June 30) 2017 results on July 19, 2017. The industrial supply Company reported a 2% increase in revenue. W.W. Grainger also announced the retirement of its CFO. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For Q2 2017 ended June 30, 2017, Grainger reported sales of $2.62 billion, up 2% compared to sales of 2.56 billion in Q2 2016. The Company's sales were driven by an increase of 7% from volume, partially offset by declines of 3% in price, 1% from foreign exchange, and 1% from the timing of the Easter holiday. Grainger's revenue numbers matched analysts' forecasts of $2.62 billion.

For Q2 2017, Grainger's operating earnings totalled $232 million, down 24% compared to operating earnings of $306 million in Q2 2016. The decline was attributed to charges from the Company's restructuring costs.

Grainger's net earnings for Q2 2017 totaled $98 million, or $1.67 per share, compared to earnings of $173 million, or $2.79 per share, in Q2 2016. Grainger's earnings, adjusted for one-time gains and costs, totaled $2.74 per share, beating Wall Street's expectations of $2.62 per share.

Segment Results

During Q1 2017, Grainger's sales from the US segment grew 1% to $2.00 billion. The increase was driven by a 5% increase from volume and 1% from intercompany sales, and partially offset by a 4% decline in price and a 1% decline from the timing of Easter holiday.

For Q1 2017, Grainger's operating earnings for the US segment declined 11% to $312.30 billion, driven by lower gross profit and higher operating expenses. The segment's gross profit margins for the reported quarter declined 1.3% driven by the strategic price initiatives. In Q2 2017, US division's operating expenses grew 4%, which included a $13 million benefit from gain on sale of branches and $14 million of restructuring charges.

During Q2 2017, Grainger's sales for the Canada segment totaled $189.1 million, declining 3% in US dollars and increasing 2% in local currency. The 2% increase in constant currency was attributed to a 2% gain from volume and a 2% benefit from favorable comparison related to the Alberta wildfires in 2016 and partially offset by 1% from lower price and a 1% decline from the timing of the Easter holiday.

The business in Canada posted an operating loss of $27.73 million versus an operating loss of $27.74 million in Q2 2016. The Company's reported quarter performance was primarily driven by improved gross margin offset by lower sales and restructuring charges.

Asset Management

Grainger's operating cash flow was $191 million in Q2 2017 versus $182 million in Q2 2016. The Company used the cash generated during the quarter and proceeds from the debt offering to invest in its business, pay down short-term debt, and return cash to shareholders through share repurchase and dividends. Grainger's capital expenditures were $52 million in the reported quarter versus $54 million in the prior year's same quarter. In Q2 2017, Grainger returned $234 million to shareholders through $80 million in dividends and $154 million to buy back 780,000 shares of stock.

CFO to Retire

On the same day as its earnings release, Ron Jadin, Grainger's Senior Vice President and Chief Financial Officer, announced that he will be retiring at year-end. Jadin joined Grainger in 1998 and has served in various financial roles including as CFO since 2008. The Company stated that an external search has been launched to identify his successor.

Outlook

Grainger reiterated its 2017 sales and earnings per share guidance of sales growth of 1% to 4% and adjusted earnings per share of $10.00 to $11.30.

Stock Performance

On Friday, July 21, 2017, W.W. Grainger's stock closed the trading session at $164.94, marginally falling 0.61% from its previous closing price of $165.96. A total volume of 1.34 million shares were exchanged during the session, which was above the 3-month average volume of 1.07 million shares. Shares of the Company have a PE ratio of 16.87 and have a dividend yield of 3.10%. The stock currently has a market cap of $9.53 billion.

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