CHICAGO, July 24, 2019 /PRNewswire/ -- Grainger (NYSE:
GWW) today reported results for the 2019 second quarter. Sales of
$2.9 billion in the quarter increased
1 percent versus the 2018 second quarter. On a constant currency
basis, sales were up 2 percent.
"We continued to demonstrate our ability to generate profitable
growth in the second quarter of 2019. Despite slower than expected
global economic growth and our significant investment in the
endless assortment model, we drove strong operating results and
cash flow," said DG Macpherson, Chairman and Chief Executive
Officer. "We gained share in the first half of the year at a modest
pace, and we remain confident in our ability to accelerate our
growth versus the market for the remainder of the year as our top
line initiatives continue to take hold. We are reiterating our 2019
total company guidance ranges for gross profit margin, operating
margin and earnings per share. We are lowering our estimate for
market growth from 1 to 4 percent to -1 to 2 percent and lowering
our revenue guidance from 4 to 8.5 percent growth to 2 to 5 percent
growth due to the weaker demand environment and performance at AGI
and Cromwell."
2019 Second
Quarter Financial Summary
|
|
($ in
millions)
|
Q2
2019
|
Q2
2018
|
Q2 v.
Prior
|
|
Reported
|
Adjusted1
|
Reported
|
Adjusted1
|
Reported
|
Adjusted1
|
Net
Sales
|
$2,893
|
$2,893
|
$2,861
|
$2,861
|
1%
|
1%
|
Gross
Profit
|
$1,121
|
$1,121
|
$1,111
|
$1,112
|
1%
|
1%
|
Operating
Earnings
|
$380
|
$377
|
$344
|
$359
|
11%
|
5%
|
Net
Earnings
|
$260
|
$258
|
$237
|
$249
|
10%
|
4%
|
Diluted
EPS
|
$4.67
|
$4.64
|
$4.16
|
$4.37
|
12%
|
6%
|
|
|
|
|
|
|
|
Gross Profit
Margin
|
38.7%
|
38.7%
|
38.8%
|
38.9%
|
-10 bps
|
-15 bps
|
Operating
Margin
|
13.1%
|
13.0%
|
12.0%
|
12.6%
|
110 bps
|
50 bps
|
Tax
Rate
|
25.6%
|
25.5%
|
23.4%
|
23.3%
|
220 bps
|
220 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 $3 million net benefit to operating earnings
and a negative $0.03 impact to EPS.
|
Revenue
Sales for the quarter increased 1 percent. On a constant currency
basis, sales increased 2 percent. Sales were primarily composed of
a 1.5 percentage point increase in volume and a 0.5 percentage
point increase from price.
Gross Profit Margin
Reported gross profit margin for the second quarter was 38.7
percent versus 38.8 percent in the 2018 second quarter. Adjusted
gross profit margin of 38.7 percent in the quarter decreased 15
basis points versus the prior year quarter.
Earnings
Reported operating earnings for the 2019 second quarter of
$380 million were up 11 percent
versus $344 million in the 2018
second quarter. On an adjusted basis, operating earnings for the
quarter of $377 million were up 5
percent versus $359 million in the
2018 quarter.
Reported operating margin of 13.1 percent increased 110 basis
points in the second quarter of 2019 versus the prior year quarter.
Adjusted operating margin of 13.0 percent in the quarter increased
50 basis points versus the prior year quarter. The increase in
operating margin was due primarily to favorable gross profit margin
in the U.S., and lower selling, general and administrative expenses
in the U.S., at the corporate level and at AGI.
Reported earnings per share of $4.67 in the second quarter were up 12 percent
versus $4.16 in the 2018 second
quarter. Adjusted earnings per share in the quarter of $4.64 increased 6 percent versus $4.37 in the 2018 second quarter. The improvement
in both reported and adjusted earnings per share was due primarily
to operating earnings growth and lower average shares
outstanding.
Tax Rate
For the 2019 second quarter, the company's reported tax rate was
25.6 percent versus 23.4 percent in the 2018 second quarter. The
increase was driven by lower tax benefits from stock-based
compensation and the absence of clean-energy tax benefits from
investments which concluded in 2018.
Cash Flow
Operating cash flow was $323 million
in the 2019 second quarter compared to $248
million in the 2018 second quarter. The 30 percent increase
in operating cash flow was primarily the result of higher net
income and favorable changes in working capital, partially offset
by higher income tax payments when compared to the prior year
quarter. 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
$352 million to shareholders through $87 million in dividends and $265 million used to buy back approximately
970,000 shares in the second quarter of 2019.
2019 Updated
Company Guidance:
|
The company is
providing the following updated 2019 guidance at the total Company
level:
|
|
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
|
*Updated as of
July 24, 2019
|
|
ꝉIn the U.S., Business
Investment and Exports are two major indicators of MRO spending.
Per the Global Insight July 2019 forecast, Business Inventory is
forecast to improve while Business Investment, Industrial
Production, Exports and GDP are forecast to soften, as a result of
slowing global growth, trade tensions and associated uncertainty,
diminishing support from fiscal stimulus and a decline in the pace
of inventory accumulation. Per the Global Insight June 2019
forecast, Canada's Business Investment, Exports, Industrial
Production and GDP are expected to slow due to a reduction in
spending, delayed investments and weakness in oil prices and
slowing global oil demand.
|
Webcast
Grainger will conduct a live conference call and webcast at
11:00 a.m. ET on July 24, 2019, to discuss the second quarter. 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 second quarter results. The Grainger Investor
Relations website also includes company information in
the company 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.
CONSOLIDATED
STATEMENTS OF EARNINGS (Unaudited)
|
(In millions of
dollars, except for per share amounts)
|
|
|
Three Months
Ended
June
30,
|
|
Six
Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net sales
|
$
|
2,893
|
|
|
$
|
2,861
|
|
|
$
|
5,692
|
|
|
$
|
5,627
|
|
Cost of goods sold
|
1,772
|
|
|
1,750
|
|
|
3,476
|
|
|
3,424
|
|
Gross profit
|
1,121
|
|
|
1,111
|
|
|
2,216
|
|
|
2,203
|
|
Selling, general and
administrative expenses
|
741
|
|
|
767
|
|
|
1,473
|
|
|
1,524
|
|
Operating earnings
|
380
|
|
|
344
|
|
|
743
|
|
|
679
|
|
Other income (expense):
|
|
|
|
|
|
|
|
Interest income
|
1
|
|
|
2
|
|
|
3
|
|
|
2
|
|
Interest expense
|
(22)
|
|
|
(23)
|
|
|
(43)
|
|
|
(48)
|
|
Other, net
|
7
|
|
|
1
|
|
|
14
|
|
|
(2)
|
|
Total other
expense
|
(14)
|
|
|
(20)
|
|
|
(26)
|
|
|
(48)
|
|
Earnings before income taxes
|
366
|
|
|
324
|
|
|
717
|
|
|
631
|
|
Income
taxes
|
94
|
|
|
76
|
|
|
183
|
|
|
142
|
|
Net earnings
|
272
|
|
|
248
|
|
|
534
|
|
|
489
|
|
Less: Net earnings
attributable to noncontrolling interest
|
12
|
|
|
11
|
|
|
21
|
|
|
20
|
|
Net earnings
attributable to W.W. Grainger, Inc.
|
$
|
260
|
|
|
$
|
237
|
|
|
$
|
513
|
|
|
$
|
469
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
4.69
|
|
|
$
|
4.19
|
|
|
$
|
9.19
|
|
|
$
|
8.29
|
|
Diluted
|
$
|
4.67
|
|
|
$
|
4.16
|
|
|
$
|
9.14
|
|
|
$
|
8.23
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
55.1
|
|
|
56.1
|
|
|
55.4
|
|
|
56.1
|
|
Diluted
|
55.4
|
|
|
56.6
|
|
|
55.7
|
|
|
56.5
|
|
Diluted Earnings Per
Share
|
|
|
|
|
|
|
|
Net earnings as
reported
|
$
|
260
|
|
|
$
|
237
|
|
|
$
|
513
|
|
|
$
|
469
|
|
Earnings allocated to
participating securities
|
(2)
|
|
|
(2)
|
|
|
(4)
|
|
|
(4)
|
|
Net earnings
available to common shareholders
|
$
|
258
|
|
|
$
|
235
|
|
|
$
|
509
|
|
|
$
|
465
|
|
Weighted average
shares adjusted for dilutive securities
|
55.4
|
|
|
56.6
|
|
|
55.7
|
|
|
56.5
|
|
Diluted earnings per
share
|
$
|
4.67
|
|
|
$
|
4.16
|
|
|
$
|
9.14
|
|
|
$
|
8.23
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In millions of
dollars)
|
|
|
(Unaudited)
|
|
|
Assets
|
June 30,
2019
|
|
December 31,
2018
|
Cash and cash
equivalents
|
$
|
315
|
|
|
$
|
538
|
|
Accounts receivable –
net
|
1,503
|
|
|
1,385
|
|
Inventories -
net
|
1,535
|
|
|
1,541
|
|
Prepaid expenses and
other assets
|
92
|
|
|
83
|
|
Prepaid income
taxes
|
11
|
|
|
10
|
|
Total current
assets
|
3,456
|
|
|
3,557
|
|
Property, buildings
and equipment – net
|
1,380
|
|
|
1,352
|
|
Deferred income
taxes
|
13
|
|
|
12
|
|
Goodwill
|
429
|
|
|
424
|
|
Intangibles -
net
|
437
|
|
|
460
|
|
Other assets
(1)
|
277
|
|
|
68
|
|
Total
assets
|
$
|
5,992
|
|
|
$
|
5,873
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Short-term
debt
|
$
|
51
|
|
|
$
|
49
|
|
Current maturities of
long-term debt
|
81
|
|
|
81
|
|
Trade accounts
payable
|
780
|
|
|
678
|
|
Accrued compensation
and benefits
|
183
|
|
|
262
|
|
Accrued contributions
to employees' profit-sharing plans (2)
|
46
|
|
|
133
|
|
Accrued expenses
(1)
|
288
|
|
|
269
|
|
Income taxes
payable
|
23
|
|
|
29
|
|
Total current
liabilities
|
1,452
|
|
|
1,501
|
|
Long-term
debt
|
2,080
|
|
|
2,090
|
|
Deferred income taxes
and tax uncertainties
|
115
|
|
|
103
|
|
Other non-current
liabilities (1)
|
231
|
|
|
86
|
|
Shareholders' equity
(3)
|
2,114
|
|
|
2,093
|
|
Total liabilities and
shareholders' equity
|
$
|
5,992
|
|
|
$
|
5,873
|
|
|
|
(1)
|
Other assets
increased $200 million, Accrued expenses increased $52 million and
Other non-current liabilities increased $150 million due to the
adoption of Accounting Standards Update (ASU) 2016-02,
Leases.
|
(2)
|
Accrued contributions
to employees' profit-sharing plans decreased $87 million primarily
due to the annual cash contributions.
|
(3)
|
Common stock
outstanding as of June 30, 2019 was 54,571,141 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
June
30,
|
|
Six Months
Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
272
|
|
|
$
|
248
|
|
|
$
|
534
|
|
|
$
|
489
|
|
|
|
|
|
|
|
|
|
Provision for losses
on accounts receivable
|
2
|
|
|
—
|
|
|
6
|
|
|
4
|
|
Deferred income taxes
and tax uncertainties
|
16
|
|
|
5
|
|
|
12
|
|
|
3
|
|
Depreciation and
amortization
|
56
|
|
|
64
|
|
|
113
|
|
|
128
|
|
Net gains from sales
of assets, net of write-offs
|
(3)
|
|
|
(8)
|
|
|
(5)
|
|
|
(14)
|
|
Stock-based
compensation
|
18
|
|
|
16
|
|
|
23
|
|
|
28
|
|
Losses from equity
method investment
|
—
|
|
|
4
|
|
|
—
|
|
|
15
|
|
Subtotal
|
89
|
|
|
81
|
|
|
149
|
|
|
164
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(16)
|
|
|
(54)
|
|
|
(118)
|
|
|
(148)
|
|
Inventories
|
(8)
|
|
|
(48)
|
|
|
12
|
|
|
(45)
|
|
Prepaid expenses and
other assets
|
8
|
|
|
8
|
|
|
(22)
|
|
|
(25)
|
|
Trade accounts
payable
|
36
|
|
|
(8)
|
|
|
100
|
|
|
5
|
|
Accrued
liabilities
|
20
|
|
|
43
|
|
|
(187)
|
|
|
(60)
|
|
Income taxes payable,
net
|
(71)
|
|
|
(16)
|
|
|
(7)
|
|
|
28
|
|
Other non-current
liabilities
|
(7)
|
|
|
(6)
|
|
|
(11)
|
|
|
(13)
|
|
Subtotal
|
(38)
|
|
|
(81)
|
|
|
(233)
|
|
|
(258)
|
|
Net cash provided by
operating activities
|
323
|
|
|
248
|
|
|
450
|
|
|
395
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Additions to
property, buildings and equipment and intangibles
|
(47)
|
|
|
(54)
|
|
|
(107)
|
|
|
(103)
|
|
Proceeds from sales
of assets
|
8
|
|
|
17
|
|
|
14
|
|
|
43
|
|
Equity method
proceeds (investment)
|
—
|
|
|
(6)
|
|
|
2
|
|
|
(14)
|
|
Net cash used in
investing activities
|
(39)
|
|
|
(43)
|
|
|
(91)
|
|
|
(74)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Net increase in
commercial paper
|
—
|
|
|
(90)
|
|
|
—
|
|
|
—
|
|
Net increase
(decrease) in lines of credit
|
—
|
|
|
10
|
|
|
3
|
|
|
—
|
|
Net decrease in
long-term debt
|
(20)
|
|
|
(11)
|
|
|
(34)
|
|
|
(36)
|
|
Proceeds from stock
options exercised
|
13
|
|
|
28
|
|
|
16
|
|
|
87
|
|
Payments for employee
taxes withheld from stock awards
|
(7)
|
|
|
(14)
|
|
|
(10)
|
|
|
(29)
|
|
Purchase of treasury
stock
|
(265)
|
|
|
(28)
|
|
|
(400)
|
|
|
(201)
|
|
Cash dividends
paid
|
(87)
|
|
|
(83)
|
|
|
(163)
|
|
|
(155)
|
|
Other, net
|
1
|
|
|
3
|
|
|
2
|
|
|
3
|
|
Net cash used in
financing activities
|
(365)
|
|
|
(185)
|
|
|
(586)
|
|
|
(331)
|
|
Exchange rate effect
on cash and cash equivalents
|
4
|
|
|
(9)
|
|
|
4
|
|
|
(4)
|
|
Net change in cash
and cash equivalents
|
(77)
|
|
|
11
|
|
|
(223)
|
|
|
(14)
|
|
Cash and cash
equivalents at beginning of period
|
392
|
|
|
302
|
|
|
538
|
|
|
327
|
|
Cash and cash
equivalents at end of period
|
$
|
315
|
|
|
$
|
313
|
|
|
$
|
315
|
|
|
$
|
313
|
|
SUPPLEMENTAL INFORMATION - 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 net sales in constant
currency, 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 net sales in constant currency,
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: net sales in constant
currency, 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:
|
|
Three Months Ended
June 30, 2019
|
Net sales increase
over prior year quarter
|
|
1%
|
Foreign
exchange
|
|
1
|
Net sales increase
over prior year quarter in constant currency
|
|
2%
|
In
millions
|
Three Months Ended
June 30,
|
|
Six Months
Ended June 30,
|
|
2019
|
Gross
Profit %
|
|
2018
|
Gross
Profit %
|
|
2019
|
Gross
Profit %
|
|
2018
|
Gross
Profit %
|
Gross profit
reported
|
$
|
1,121
|
|
38.7
|
%
|
|
$
|
1,111
|
|
38.8
|
%
|
|
$
|
2,216
|
|
38.9
|
%
|
|
$
|
2,203
|
|
39.1
|
%
|
Restructuring,
net
|
—
|
|
—
|
|
|
1
|
|
0.1
|
|
|
1
|
|
—
|
|
|
1
|
|
0.1
|
|
Gross profit
adjusted
|
$
|
1,121
|
|
38.7
|
%
|
|
$
|
1,112
|
|
38.9
|
%
|
|
$
|
2,217
|
|
38.9
|
%
|
|
$
|
2,204
|
|
39.2
|
%
|
SUPPLEMENTAL
INFORMATION - 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
Operating
Margin %
|
|
2018
|
Operating
Margin %
|
|
2019
|
Operating
Margin %
|
|
2018
|
Operating
Margin %
|
Operating earnings
reported
|
$
|
380
|
|
13.1
|
%
|
|
$
|
344
|
|
12.0
|
%
|
|
$
|
743
|
|
13.1
|
%
|
|
$
|
679
|
|
12.1
|
%
|
Restructuring,
net
|
(3)
|
|
(0.1)
|
|
|
15
|
|
0.6
|
|
|
(1)
|
|
(0.1)
|
|
|
23
|
|
0.4
|
|
Operating earnings
adjusted
|
$
|
377
|
|
13.0
|
%
|
|
$
|
359
|
|
12.6
|
%
|
|
$
|
742
|
|
13.0
|
%
|
|
$
|
702
|
|
12.5
|
%
|
In
millions
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
|
2019
|
|
2018
|
%
|
|
2019
|
|
2018
|
%
|
Net earnings
reported
|
$
|
260
|
|
|
$
|
237
|
|
10
|
%
|
|
$
|
513
|
|
|
$
|
469
|
|
9
|
%
|
Restructuring,
net
|
(2)
|
|
|
12
|
|
|
|
—
|
|
|
18
|
|
|
Net earnings
adjusted
|
$
|
258
|
|
|
$
|
249
|
|
4
|
%
|
|
$
|
513
|
|
|
$
|
487
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share reported
|
$
|
4.67
|
|
|
$
|
4.16
|
|
12
|
%
|
|
$
|
9.14
|
|
|
$
|
8.23
|
|
11
|
%
|
Pretax restructuring,
net
|
(0.05)
|
|
|
0.27
|
|
|
|
(0.01)
|
|
|
0.41
|
|
|
Tax effect
(1)
|
0.02
|
|
|
(0.06)
|
|
|
|
0.01
|
|
|
(0.09)
|
|
|
Total, net of
tax
|
(0.03)
|
|
|
0.21
|
|
|
|
—
|
|
|
0.32
|
|
|
Diluted earnings per
share adjusted
|
$
|
4.64
|
|
|
$
|
4.37
|
|
6
|
%
|
|
$
|
9.14
|
|
|
$
|
8.55
|
|
7
|
%
|
|
(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
June
30,
|
|
Six Months
Ended
June
30,
|
|
2019
|
|
2018
|
|
Bps
impact
|
|
2019
|
|
2018
|
|
Bps
impact
|
Tax rate
reported
|
25.6
|
%
|
|
23.4
|
%
|
|
220
|
|
|
25.5
|
%
|
|
22.5
|
%
|
|
300
|
|
Restructuring, net
|
(0.1)
|
|
|
(0.1)
|
|
|
|
|
—
|
|
|
—
|
|
|
|
Tax rate
adjusted
|
25.5
|
%
|
|
23.3
|
%
|
|
220
|
|
|
25.5
|
%
|
|
22.5
|
%
|
|
300
|
|
View original
content:http://www.prnewswire.com/news-releases/grainger-reports-results-for-the-2019-second-quarter-300889845.html
SOURCE W.W. Grainger, Inc.