The company said its second quarter results were in-line with its own expectations.
Sales increased 2% in the 2017 second quarter versus the prior year, driven by an increase of 7 percentage points from volume, partially offset by declines of 3 percentage points in price, 1 percentage point from foreign exchange and 1 percentage point from the timing of the Easter holiday.
Company operating earnings of $232 million for the 2017 second quarter declined 24% versus $306 million in the 2016 quarter. The decline was driven primarily by charges from the company's restructuring costs. Excluding restructuring in both years, operating earnings were down 9%.
The company has two reportable business segments, the United States and Canada, which represented approximately 80% of company sales for the quarter. Sales for the U.S. segment were up 1% versus the 2016 second quarter. Second quarter 2017 sales for the Canada segment decreased 3% in U.S. dollars and increased 2% in local currency.
Looking ahead, the company reaffirmed guidance for its fiscal year 2017.
The company reaffirmed earnings of $10.00-11.30, excluding non-recurring items, which falls in-line with expectations.
On the top line, the company reaffirmed sales growth of 1-4%, which calculates to approximately $10.24-10.54 billion and also falls in-line with expectations.
In other news.... Ron Jadin, 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. An external search has been launched to identify his successor.