W.W. Grainger Inc. (GWW, Financial) filed Quarterly Report for the period ended 2010-03-31.
W.w. Grainger Inc. has a market cap of $7.88 billion; its shares were traded at around $108.43 with a P/E ratio of 19.7 and P/S ratio of 1.3. The dividend yield of W.w. Grainger Inc. stocks is 1.7%. W.w. Grainger Inc. had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated W.w. Grainger Inc. the business predictability rank of 2.5-star.GWW is in the portfolios of Chuck Royce of Royce& Associates, Jeremy Grantham of GMO LLC, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, First Pacific Advisors of First Pacific Advisors, LLC.
Net sales were $1,408.1 million for the first quarter of 2010, an increase of $99.4 million, or 7.6%, when compared with net sales of $1,308.7 million for the same period in 2009. Sales in all customer segments increased for the first quarter of 2010, except the contractor customer sector which was down in the mid-single digits. The overall increase in net sales was led by a low double-digit increase in the heavy and light manufacturing customer sectors, followed by a mid-single digit increase in the government and commercial customer sectors.
For the three months ended March 31, 2010, working capital of $1,493.9 million increased by $139.2 million when compared to $1,354.7 million at December 31, 2009. The increase in working capital primarily relates to higher cash and accounts receivable balances. The ratio of current assets to current liabilities increased to 3.0 at March 31, 2010, versus 2.7 at December 31, 2009.
Net cash provided by operating activities was $113.2 million and $42.5 million for the three months ended March 31, 2010 and 2009, respectively. Net cash flows from operating activities serve as Grainger s primary source to fund its growth initiatives. Contributing to cash flows from operations were net earnings in the three months ended March 31, 2010 of $99.4 million and the effect of non-cash expenses such as depreciation and amortization. Partially offsetting these amounts were changes in operating assets and liabilities, which resulted in a net use of cash of $36.7 million for the first three months of 2010.
Net cash used in investing activities was $22.9 million and $28.4 million for the three months ended March 31, 2010 and 2009, respectively. Cash expended for additions to property, buildings, equipment and capitalized software was $13.8 million in the first three months of 2010 versus $28.5 million in the first three months of 2009. Capital expenditures in 2010 included funding of infrastructure improvement projects in the distribution centers in the United States, Canada and Mexico.
Net cash used in financing activities was $7.2 million and $151.0 million for the three months ended March 31, 2010 and 2009, respectively. The $143.8 million difference in cash used in financing activities for the three months ended March 31, 2010 was due primarily to lower treasury share repurchases. Cash paid for treasury stock purchases was $6.4 million for the first three months of 2010 versus $127.7 million for the first three months of 2009. Grainger also used cash in financing activities to pay dividends to shareholders of $34.1 million and $30.6 million for the first three months of 2010 and 2009, respectively.
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W.w. Grainger Inc. has a market cap of $7.88 billion; its shares were traded at around $108.43 with a P/E ratio of 19.7 and P/S ratio of 1.3. The dividend yield of W.w. Grainger Inc. stocks is 1.7%. W.w. Grainger Inc. had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated W.w. Grainger Inc. the business predictability rank of 2.5-star.GWW is in the portfolios of Chuck Royce of Royce& Associates, Jeremy Grantham of GMO LLC, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, First Pacific Advisors of First Pacific Advisors, LLC.
Highlight of Business Operations:
Net earnings for the first quarter of 2010 increased by 2.9% to $99.2 million from $96.4 million in the first quarter of 2009. The increase in net earnings for the quarter primarily resulted from an increase in operating earnings. Diluted earnings per share of $1.31 in the first quarter of 2010 were 4.8% higher than the $1.25 for the first quarter of 2009 due to increased net earnings and fewer shares outstanding. Grainger recorded a non-cash charge of $11.2 million, or $0.15 cents per share, during the first quarter of 2010 to write down a deferred income tax asset following the passage of the Patient Protection and Affordable Care Act. Grainger also recognized a $10.3 million benefit that resulted from a paid time off policy change, which reduced the related liability and which positively benefited earnings per share by $0.08 cents. Excluding these items, earnings per share would have been $1.38 or 10.4% higher than the first quarter of 2009.Net sales were $1,408.1 million for the first quarter of 2010, an increase of $99.4 million, or 7.6%, when compared with net sales of $1,308.7 million for the same period in 2009. Sales in all customer segments increased for the first quarter of 2010, except the contractor customer sector which was down in the mid-single digits. The overall increase in net sales was led by a low double-digit increase in the heavy and light manufacturing customer sectors, followed by a mid-single digit increase in the government and commercial customer sectors.
For the three months ended March 31, 2010, working capital of $1,493.9 million increased by $139.2 million when compared to $1,354.7 million at December 31, 2009. The increase in working capital primarily relates to higher cash and accounts receivable balances. The ratio of current assets to current liabilities increased to 3.0 at March 31, 2010, versus 2.7 at December 31, 2009.
Net cash provided by operating activities was $113.2 million and $42.5 million for the three months ended March 31, 2010 and 2009, respectively. Net cash flows from operating activities serve as Grainger s primary source to fund its growth initiatives. Contributing to cash flows from operations were net earnings in the three months ended March 31, 2010 of $99.4 million and the effect of non-cash expenses such as depreciation and amortization. Partially offsetting these amounts were changes in operating assets and liabilities, which resulted in a net use of cash of $36.7 million for the first three months of 2010.
Net cash used in investing activities was $22.9 million and $28.4 million for the three months ended March 31, 2010 and 2009, respectively. Cash expended for additions to property, buildings, equipment and capitalized software was $13.8 million in the first three months of 2010 versus $28.5 million in the first three months of 2009. Capital expenditures in 2010 included funding of infrastructure improvement projects in the distribution centers in the United States, Canada and Mexico.
Net cash used in financing activities was $7.2 million and $151.0 million for the three months ended March 31, 2010 and 2009, respectively. The $143.8 million difference in cash used in financing activities for the three months ended March 31, 2010 was due primarily to lower treasury share repurchases. Cash paid for treasury stock purchases was $6.4 million for the first three months of 2010 versus $127.7 million for the first three months of 2009. Grainger also used cash in financing activities to pay dividends to shareholders of $34.1 million and $30.6 million for the first three months of 2010 and 2009, respectively.
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