W.W. Grainger's 2Q fall but tops expectations

CHICAGO - Maintenance products supplier W.W. Grainger Inc. said Wednesday its second-quarter profit fell 18 percent as weaker sales volumes and a stronger dollar offset higher selling prices. The earnings still beat Wall Street expectations.

Net income available to common shareholders fell to $90.3 million, or $1.21 per share, for the three months ended in June compared with $110.5 million, or $1.42 per share, a year earlier.

Analysts polled by Thomson Reuters expected, on average, earnings per share of $1.14.

Grainger used a lower number of shares outstanding to calculate earnings per share in its recently completed quarter.

Revenue declined 13 percent $1.53 billion from $1.76 billion a year ago. Analysts expected revenue of $1.52 billion.

Sales declined in all customer end markets except government markets.

In February, the company revealed plans to cut 300 to 400 jobs this year. To date 298 jobs have been eliminated with severance expense of $8 million, or 5 cents per share, through the second quarter.

Shares rose $1.90, or 2.3 percent, to $84.48 in morning trading. In the last 52 weeks, the stock has ranged from $58.86 to $93.99.

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