CHICAGO, Oct. 23, 2019 /PRNewswire/ -- Grainger
(NYSE: GWW) today reported results for the 2019 third quarter.
Sales of $2.9 billion in the quarter
increased 4 percent versus the 2018 third quarter. On a daily
basis, sales were up 2.5 percent. The third quarter had one more
selling day than the prior year period. Foreign exchange had
no impact on total company sales.
"While the global demand environment continued to weaken, our
U.S. and endless assortment businesses gained share as we made
solid progress on our key growth initiatives and were diligent in
managing expenses," said DG Macpherson, Chairman and Chief
Executive Officer. "We remain confident in our ability to achieve
results within our 2019 total company guidance ranges as provided
in our second quarter earnings release."
2019 Third Quarter Financial Summary
($ in
millions)
|
Q3
2019
|
Q3
2018
|
Q3
|
Change v.
Prior
|
|
Reported
|
Adjusted1
|
Reported
|
Adjusted1
|
Reported
|
Adjusted1
|
Net
Sales
|
$2,947
|
$2,947
|
$2,831
|
$2,831
|
4%
|
4%
|
Gross
Profit
|
$1,099
|
$1,099
|
$1,079
|
$1,079
|
2%
|
2%
|
Operating
Earnings
|
$338
|
$339
|
$189
|
$332
|
78%
|
2%
|
Net
Earnings
|
$233
|
$233
|
$104
|
$240
|
123%
|
-3%
|
Diluted
EPS
|
$4.25
|
$4.26
|
$1.82
|
$4.19
|
134%
|
2%
|
|
|
|
|
|
|
|
Gross Profit
%
|
37.3%
|
37.3%
|
38.1%
|
38.1%
|
-80 bps
|
-80 bps
|
Operating
Margin
|
11.4%
|
11.5%
|
6.7%
|
11.7%
|
480 bps
|
-20 bps
|
Tax
Rate
|
24.2%
|
24.2%
|
32.7%
|
20.0%
|
-850 bps
|
420 bps
|
(1)
|
Results exclude
restructuring and income tax items as shown in the supplemental
information of this release. Reconciliations of the adjusted
measures reflected in this table to the most directly comparable
GAAP measures are provided in the supplemental information of this
release. 2019 reported results included restructuring primarily in
Canada resulting in a negative $1 million impact to operating
earnings and a negative $0.01 impact to EPS. Reported results in Q3
2018 contained $139 million in non-cash impairment charges related
to the Cromwell business in the U.K. and $4 million in
restructuring charges related to the U.S. segment and Other
Businesses.
|
Revenue
Daily sales for the quarter increased 2.5
percent. Sales were primarily composed of a 2.5 percentage point
increase in volume. Price inflation and the impact from foreign
exchange were both flat.
Gross Profit Margin
Reported and adjusted gross
profit margin for the third quarter were 37.3 percent versus 38.1
percent in the 2018 third quarter due primarily to performance in
the U.S. segment and Other businesses. Year to date 2019
reported and adjusted gross profit margin were 38.4 percent versus
38.8 percent in the 2018 year to date period due to performance in
Other businesses.
Earnings
Reported operating earnings for the 2019
third quarter of $338 million were up
78 percent versus $189 million in the
2018 third quarter. Reported earnings in the 2018 third quarter
included $143 million in
restructuring and non-cash impairment charges, which were primarily
related to the Cromwell business in the U.K. On an adjusted basis,
operating earnings for the quarter of $339
million were up 2 percent versus $332
million in the 2018 quarter.
Reported operating margin of 11.4 percent increased 480 basis
points in the third quarter of 2019 versus the prior year quarter.
Adjusted operating margin of 11.5 percent in the quarter declined
20 basis points versus the prior year quarter. The decline in
operating margin was due primarily to investments in Zoro. Year to
date 2019 reported operating margin of 12.5 percent increased 225
basis points versus the 2018 year to date period. Year to
date adjusted operating margin of 12.5 percent increased 30 basis
points versus the 2018 year to date period due primarily to the
U.S. segment and Canada.
Reported earnings per share of $4.25 in the third quarter was up 134 percent
versus $1.82 in the 2018 third
quarter. Adjusted earnings per share in the quarter of $4.26 increased 2 percent versus $4.19 in the 2018 third quarter. The improvement
in adjusted earnings per share was due primarily to higher
operating earnings and lower average shares outstanding, partially
offset by higher taxes due to lower tax benefits from stock based
compensation.
Tax Rate
For the 2019 third quarter, the company's
reported tax rate was 24.2 percent versus 32.7 percent in the 2018
third quarter. The higher tax rate in the prior year quarter was
driven primarily by Cromwell impairment charges, which were not tax
deductible.
Excluding net restructuring and impairment charges in both
periods, the adjusted tax rates were 24.2% and 20.0% for the three
months ended September 30, 2019 and
2018, respectively. The increase in effective tax rate was
primarily driven by lower tax benefit from stock-based compensation
and the absence of the Company's clean energy tax benefits in 2019
as the Company concluded these investments in 2018.
Cash Flow
Operating cash flow was $320 million in the 2019 third quarter compared
to $348 million in the 2018 third
quarter. The decline in operating cash flow was primarily the
result of timing related to supplier payments. The company
used the cash generated during the quarter to invest in the
business and return cash to shareholders through share repurchases
and dividends. Grainger returned $279 million to shareholders
through $79 million in dividends and
$200 million used to buy back
approximately 725,000 shares in the third quarter of 2019.
2019 Company Guidance:
The company is reiterating
2019 guidance at the total Company level. These metrics reflect the
updated guidance provided in the Q2 2019 earnings release.
Total
Company
|
2019 Guidance
Range
|
Market Growth
(nominal)ꝉ
|
-1.0% to
2.0%
|
Net Sales
|
2.0% to 5.0%
growth
|
Gross Profit
Margin
|
38.1% to
38.7%
|
Operating
Margin
|
12.2% to
13.0%
|
Earnings per
Share
|
$17.10 to
$18.70
|
|
ꝉIn the U.S., Business
Investment and Exports are two major indicators of MRO spending.
Per the Global Insight October 2019 forecast, Business Inventory is
forecast to improve while Business Investment, Industrial
Production, Exports and GDP are forecast to soften, as a result of
the trade tensions and associated uncertainty around tariff policy,
slowing global growth and a strong US dollar, diminishing support
from fiscal stimulus and a decline in the pace of inventory
accumulation. Per the Global Insight September 2019 forecast,
Canada's Business Investment, Exports, Industrial Production and
GDP are expected to slow due to elevated global trade
uncertainties, a reduction in spending, delayed investments and
slowing global oil demand.
|
Webcast
Grainger will conduct a live conference call
and webcast at 11:00 a.m. ET on
October 23, 2019 to discuss the third
quarter results. The webcast will be hosted by DG Macpherson,
Chairman and CEO, and Tom Okray,
Senior Vice President and CFO, and can be accessed at
www.invest.grainger.com. For those unable to participate in the
live event, a webcast replay will be available for 90 days at
www.invest.grainger.com.
About Grainger
W.W. Grainger, Inc., with 2018 sales
of $11.2 billion, is North America's leading broad line supplier of
maintenance, repair and operating products (MRO), with
operations also in Europe,
Asia and Latin America.
Visit www.invest.grainger.com to view
information about the company, including a supplement regarding
2019 third quarter results. Additional company information can be
found on the Grainger Investor Relations website
which includes our Fact Book and
Corporate Social Responsibility Report.
Safe Harbor Statement
All statements in this communication, other than those relating to
historical facts, are "forward-looking statements." Forward-looking
statements can generally be identified by their use of terms such
as "anticipate," "estimate," "believe," "expect," "could,"
"forecast," "may," "intend," "plan," "predict," "project" "will" or
"would" and similar terms and phrases, including references to
assumptions. Forward-looking statements are not guarantees of
future performance and are subject to a number of assumptions,
risks and uncertainties, many of which are beyond our control,
which could cause actual results to differ materially from such
statements. Forward-looking statements include, but are not limited
to, statements about future strategic plans and future financial
and operating results. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include, among others: higher product costs or other
expenses; a major loss of customers; loss or disruption of source
of supply; increased competitive pricing pressures; failure to
develop or implement new technology initiatives; the
implementation, timing and results of our strategic pricing
initiatives; the outcome of pending and future litigation or
governmental or regulatory proceedings, including with respect to
wage and hour, anti-bribery and corruption, environmental,
advertising, privacy and cybersecurity matters; investigations,
inquiries, audits and changes in laws and regulations; disruption
of information technology or data security systems; general
industry, economic, market or political conditions; general global
economic conditions; currency exchange rate fluctuations; market
volatility; commodity price volatility; labor shortages; facilities
disruptions or shutdowns; higher fuel costs or disruptions in
transportation services; natural and other catastrophes;
unanticipated and/or extreme weather conditions; loss of key
members of management; our ability to operate, integrate and
leverage acquired businesses; changes in effective tax rates; our
common stock, including volatility in our stock price; and other
factors which can be found in our filings with the Securities and
Exchange Commission, including our most recent periodic reports
filed on Form 10-K and Form 10-Q, which are available on our
Investor Relations website. Forward-looking statements are given
only as of the date of this communication and we disclaim any
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by law.
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
|
(In millions of
dollars, except for per share amounts)
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine
Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net sales
|
$
|
2,947
|
|
|
$
|
2,831
|
|
|
$
|
8,639
|
|
|
$
|
8,458
|
|
Cost of goods sold
|
1,848
|
|
|
1,752
|
|
|
5,324
|
|
|
5,176
|
|
Gross profit
|
1,099
|
|
|
1,079
|
|
|
3,315
|
|
|
3,282
|
|
Selling, general and
administrative expenses
|
761
|
|
|
890
|
|
|
2,234
|
|
|
2,414
|
|
Operating earnings
|
338
|
|
|
189
|
|
|
1,081
|
|
|
868
|
|
Other income (expense):
|
|
|
|
|
|
|
|
Interest income
|
1
|
|
|
2
|
|
|
4
|
|
|
4
|
|
Interest expense
|
(21)
|
|
|
(22)
|
|
|
(64)
|
|
|
(70)
|
|
Other, net
|
4
|
|
|
2
|
|
|
18
|
|
|
—
|
|
Total other
expense, net
|
(16)
|
|
|
(18)
|
|
|
(42)
|
|
|
(66)
|
|
Earnings before income taxes
|
322
|
|
|
171
|
|
|
1,039
|
|
|
802
|
|
Income
taxes
|
78
|
|
|
56
|
|
|
261
|
|
|
198
|
|
Net earnings
|
244
|
|
|
115
|
|
|
778
|
|
|
604
|
|
Less: Net earnings
attributable to noncontrolling interest
|
11
|
|
|
11
|
|
|
32
|
|
|
31
|
|
Net earnings
attributable to W.W. Grainger, Inc.
|
$
|
233
|
|
|
$
|
104
|
|
|
$
|
746
|
|
|
$
|
573
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
4.27
|
|
|
$
|
1.84
|
|
|
$
|
13.46
|
|
|
$
|
10.12
|
|
Diluted
|
$
|
4.25
|
|
|
$
|
1.82
|
|
|
$
|
13.40
|
|
|
$
|
10.04
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
54.1
|
|
|
56.3
|
|
|
55.0
|
|
|
56.2
|
|
Diluted
|
54.4
|
|
|
56.8
|
|
|
55.2
|
|
|
56.6
|
|
Diluted Earnings Per
Share
|
|
|
|
|
|
|
|
Net earnings as
reported
|
$
|
233
|
|
|
$
|
104
|
|
|
$
|
746
|
|
|
$
|
573
|
|
Earnings allocated to
participating securities
|
(2)
|
|
|
(1)
|
|
|
(6)
|
|
|
(5)
|
|
Net earnings
available to common shareholders
|
$
|
231
|
|
|
$
|
103
|
|
|
$
|
740
|
|
|
$
|
568
|
|
Weighted average
shares adjusted for dilutive securities
|
54.4
|
|
|
56.8
|
|
|
55.2
|
|
|
56.6
|
|
Diluted earnings per
share
|
$
|
4.25
|
|
|
$
|
1.82
|
|
|
$
|
13.40
|
|
|
$
|
10.04
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In millions of
dollars)
|
|
|
|
|
|
(Unaudited)
|
|
|
Assets
|
September 30,
2019
|
|
December 31,
2018
|
Cash and cash
equivalents
|
$
|
286
|
|
|
$
|
538
|
|
Accounts receivable –
net
|
1,495
|
|
|
1,385
|
|
Inventories -
net
|
1,520
|
|
|
1,541
|
|
Prepaid expenses and
other assets
|
86
|
|
|
83
|
|
Prepaid income
taxes
|
9
|
|
|
10
|
|
Total current
assets
|
3,396
|
|
|
3,557
|
|
Property, buildings
and equipment – net
|
1,384
|
|
|
1,352
|
|
Deferred income
taxes
|
13
|
|
|
12
|
|
Goodwill
|
425
|
|
|
424
|
|
Intangibles -
net
|
422
|
|
|
460
|
|
Other assets
(1)
|
282
|
|
|
68
|
|
Total
assets
|
$
|
5,922
|
|
|
$
|
5,873
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Short-term
debt
|
$
|
51
|
|
|
$
|
49
|
|
Current maturities of
long-term debt
|
219
|
|
|
81
|
|
Trade accounts
payable
|
723
|
|
|
678
|
|
Accrued compensation
and benefits
|
170
|
|
|
262
|
|
Accrued contributions
to employees' profit-sharing plans (2)
|
70
|
|
|
133
|
|
Accrued expenses
(1)
|
327
|
|
|
269
|
|
Income taxes
payable
|
12
|
|
|
29
|
|
Total current
liabilities
|
1,572
|
|
|
1,501
|
|
Long-term
debt
|
1,918
|
|
|
2,090
|
|
Deferred income taxes
and tax uncertainties
|
120
|
|
|
103
|
|
Other non-current
liabilities (1)
|
240
|
|
|
86
|
|
Shareholders' equity
(3)
|
2,072
|
|
|
2,093
|
|
Total liabilities and
shareholders' equity
|
$
|
5,922
|
|
|
$
|
5,873
|
|
|
(1)
|
|
Other assets
increased $207 million, Accrued expenses increased $54 million and
Other non-current liabilities increased $159 million due to the
adoption of Accounting Standards Update (ASU) 2016-02,
Leases.
|
(2)
|
|
Accrued contributions
to employees' profit-sharing plans decreased $63 million primarily
due to the timing of cash contributions to the plans.
|
(3)
|
|
Common stock
outstanding as of September 30, 2019 was 53,866,254 compared with
55,862,360 shares at December 31, 2018, primarily due to share
repurchases.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
(In millions of
dollars)
|
Three Months
Ended September
30,
|
|
Nine Months
Ended September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
244
|
|
|
$
|
115
|
|
|
$
|
778
|
|
|
$
|
604
|
|
|
|
|
|
|
|
|
|
Provision for losses
on accounts receivable
|
1
|
|
|
3
|
|
|
7
|
|
|
7
|
|
Deferred income taxes
and tax uncertainties
|
7
|
|
|
7
|
|
|
19
|
|
|
10
|
|
Depreciation and
amortization
|
58
|
|
|
64
|
|
|
171
|
|
|
192
|
|
Impairment of
goodwill, intangible and other assets
|
—
|
|
|
142
|
|
|
—
|
|
|
142
|
|
Net gains from sales
of assets and divestitures
|
—
|
|
|
(8)
|
|
|
(5)
|
|
|
(22)
|
|
Stock-based
compensation
|
9
|
|
|
8
|
|
|
32
|
|
|
36
|
|
Losses from equity
method investment
|
—
|
|
|
3
|
|
|
—
|
|
|
18
|
|
Subtotal
|
75
|
|
|
219
|
|
|
224
|
|
|
383
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(1)
|
|
|
(24)
|
|
|
(119)
|
|
|
(172)
|
|
Inventories
|
6
|
|
|
(8)
|
|
|
18
|
|
|
(53)
|
|
Prepaid expenses and
other assets
|
7
|
|
|
12
|
|
|
(15)
|
|
|
(13)
|
|
Trade accounts
payable
|
(50)
|
|
|
(1)
|
|
|
50
|
|
|
4
|
|
Accrued
liabilities
|
50
|
|
|
24
|
|
|
(137)
|
|
|
(36)
|
|
Income taxes,
net
|
(9)
|
|
|
11
|
|
|
(16)
|
|
|
39
|
|
Other non-current
liabilities
|
(2)
|
|
|
—
|
|
|
(13)
|
|
|
(13)
|
|
Subtotal
|
1
|
|
|
14
|
|
|
(232)
|
|
|
(244)
|
|
Net cash provided by
operating activities
|
320
|
|
|
348
|
|
|
770
|
|
|
743
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Additions to
property, buildings, equipment and intangibles
|
(56)
|
|
|
(66)
|
|
|
(163)
|
|
|
(169)
|
|
Proceeds from sales
of assets
|
2
|
|
|
33
|
|
|
16
|
|
|
76
|
|
Equity method
proceeds (investment)
|
—
|
|
|
2
|
|
|
2
|
|
|
(12)
|
|
Net cash used in
investing activities
|
(54)
|
|
|
(31)
|
|
|
(145)
|
|
|
(105)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Net increase
(decrease) in lines of credit
|
1
|
|
|
(4)
|
|
|
4
|
|
|
(4)
|
|
Net decrease in
long-term debt
|
(14)
|
|
|
(53)
|
|
|
(48)
|
|
|
(89)
|
|
Proceeds from stock
options exercised
|
3
|
|
|
92
|
|
|
19
|
|
|
179
|
|
Payments for employee
taxes withheld from stock awards
|
—
|
|
|
18
|
|
|
(10)
|
|
|
(11)
|
|
Purchases of treasury
stock
|
(200)
|
|
|
(82)
|
|
|
(600)
|
|
|
(283)
|
|
Cash dividends
paid
|
(79)
|
|
|
(77)
|
|
|
(242)
|
|
|
(232)
|
|
Other, net
|
—
|
|
|
—
|
|
|
2
|
|
|
3
|
|
Net cash used in
financing activities
|
(289)
|
|
|
(106)
|
|
|
(875)
|
|
|
(437)
|
|
Exchange rate effect
on cash and cash equivalents
|
(6)
|
|
|
(7)
|
|
|
(2)
|
|
|
(11)
|
|
Net change in cash
and cash equivalents
|
(29)
|
|
|
204
|
|
|
(252)
|
|
|
190
|
|
Cash and cash
equivalents at beginning of period
|
315
|
|
|
313
|
|
|
538
|
|
|
327
|
|
Cash and cash
equivalents at end of period
|
$
|
286
|
|
|
$
|
517
|
|
|
$
|
286
|
|
|
$
|
517
|
|
SUPPLEMENTAL INFORMATION - CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)
(In millions
of dollars, except for per share amounts)
The company supplemented the reporting of financial information
determined under U.S. generally accepted accounting principles
(GAAP) with certain non-GAAP financial measures, which the company
refers to as "adjusted" measures, including adjusted gross profit,
adjusted gross profit margin, adjusted operating earnings, adjusted
operating margin, adjusted net earnings, adjusted tax rate and
adjusted diluted earnings per share. Adjusted measures exclude
items that may not be indicative of core operating results. The
company believes that these non-GAAP measures provide meaningful
information to assist shareholders in understanding financial
results and assessing prospects for future performance. Management
believes adjusted gross profit, adjusted gross profit margin,
adjusted operating earnings, adjusted operating margin, adjusted
net earnings, adjusted tax rate and adjusted diluted earnings per
share are important indicators of operations because they exclude
items that may not be indicative of our core operating results, and
provide a better baseline for analyzing trends in our underlying
businesses. Because non-GAAP financial measures are not
standardized, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having
the same or similar names. These adjusted financial measures should
not be considered in isolation or as a substitute for reported
results. These non-GAAP financial measures reflect an additional
way of viewing aspects of operations that, when viewed with GAAP
results, provide a more complete understanding of the business. The
company strongly encourages investors and shareholders to review
company financial statements and publicly filed reports in their
entirety and not to rely on any single financial measure.
This press release also includes certain non-GAAP
forward-looking information. The company believes that a
quantitative reconciliation of such forward-looking information to
the most comparable financial measure calculated and presented in
accordance with GAAP cannot be made available without unreasonable
efforts. A reconciliation of these non-GAAP financial measures
would require the company to predict the timing and likelihood of
future restructurings, asset impairments, and other charges.
Neither of these forward-looking measures, nor their probable
significance, can be quantified with a reasonable degree of
accuracy. Accordingly, the most directly comparable forward-looking
GAAP measures are not provided.
The reconciliations provided below reconcile GAAP financial
measures to the non-GAAP financial measures: adjusted gross profit,
adjusted gross profit margin, adjusted operating earnings, adjusted
operating margin, adjusted net earnings, adjusted tax rate and
adjusted diluted earnings per share:
In
millions
|
Three Months Ended
September 30,
|
|
Nine Months
Ended September 30,
|
|
2019
|
Gross Profit
%
|
|
2018
|
Gross Profit
%
|
|
2019
|
Gross Profit
%
|
|
2018
|
Gross Profit
%
|
Gross profit
reported
|
$
|
1,099
|
|
37.3
|
%
|
|
$
|
1,079
|
|
38.1
|
%
|
|
$
|
3,315
|
|
38.4
|
%
|
|
$
|
3,282
|
|
38.8
|
%
|
Restructuring, net
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
1
|
|
—
|
|
|
1
|
|
—
|
|
Gross profit
adjusted
|
$
|
1,099
|
|
37.3
|
%
|
|
$
|
1,079
|
|
38.1
|
%
|
|
$
|
3,316
|
|
38.4
|
%
|
|
$
|
3,283
|
|
38.8
|
%
|
In
millions
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
Operating Margin
%
|
|
2018
|
Operating Margin
%
|
|
2019
|
Operating Margin
%
|
|
2018
|
Operating Margin
%
|
Operating earnings
reported
|
$
|
338
|
|
11.4
|
%
|
|
$
|
189
|
|
6.7
|
%
|
|
$
|
1,081
|
|
12.5
|
%
|
|
$
|
868
|
|
10.3
|
%
|
Restructuring, net
and impairment charges
|
1
|
|
0.1
|
|
|
143
|
|
5.0
|
|
|
—
|
|
—
|
|
|
166
|
|
1.9
|
|
Operating earnings
adjusted
|
$
|
339
|
|
11.5
|
%
|
|
$
|
332
|
|
11.7
|
%
|
|
$
|
1,081
|
|
12.5
|
%
|
|
$
|
1,034
|
|
12.2
|
%
|
SUPPLEMENTAL
INFORMATION - CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)
|
(In millions of
dollars, except for per share amounts)
|
|
In
millions
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
2019
|
|
2018
|
%
|
|
2019
|
|
2018
|
%
|
Net earnings
reported
|
$
|
233
|
|
|
$
|
104
|
|
123
|
%
|
|
$
|
746
|
|
|
$
|
573
|
|
30
|
%
|
Restructuring, net
and impairment charges
|
—
|
|
|
136
|
|
|
|
—
|
|
|
154
|
|
|
Net earnings
adjusted
|
$
|
233
|
|
|
$
|
240
|
|
(3)
|
%
|
|
$
|
746
|
|
|
$
|
727
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share reported
|
$
|
4.25
|
|
|
$
|
1.82
|
|
134
|
%
|
|
$
|
13.40
|
|
|
$
|
10.04
|
|
33
|
%
|
Pretax restructuring,
net and impairment charges
|
0.01
|
|
|
2.48
|
|
|
|
—
|
|
|
2.90
|
|
|
Tax effect
(1)
|
—
|
|
|
(0.11)
|
|
|
|
—
|
|
|
(0.20)
|
|
|
Total, net of
tax
|
0.01
|
|
|
2.37
|
|
|
|
—
|
|
|
2.70
|
|
|
Diluted earnings per
share adjusted
|
$
|
4.26
|
|
|
$
|
4.19
|
|
2
|
%
|
|
$
|
13.40
|
|
|
$
|
12.74
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
(1) The tax impact of
adjustments is calculated based on the income tax rate in each
applicable jurisdiction, subject to deductibility limitations and
the company's ability to realize the associated tax
benefits.
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
Bps
impact
|
|
2019
|
|
2018
|
|
Bps
impact
|
Tax rate
reported
|
24.2
|
%
|
|
32.7
|
%
|
|
(850)
|
|
|
25.1
|
%
|
|
24.7
|
%
|
|
40
|
|
Restructuring, net
and impairment charges
|
—
|
|
|
(12.7)
|
|
|
|
|
—
|
|
|
(3.0)
|
|
|
|
Tax rate
adjusted
|
24.2
|
%
|
|
20.0
|
%
|
|
420
|
|
|
25.1
|
%
|
|
21.7
|
%
|
|
340
|
|
View original
content:http://www.prnewswire.com/news-releases/grainger-reports-results-for-the-2019-third-quarter-300943415.html
SOURCE W.W. Grainger, Inc.