WW Grainger 2Q net income up on overseas strength
W.W. Grainger Inc.'s second-quarter net income climbed 12 percent on strengthening sales in the U.S., Canada and overseas, thanks to higher prices and acquisitions.
The supplier of power tools and other industrial equipment also boosted the low end of its full-year earnings guidance on Wednesday, citing confidence in its expanded products offerings, increased sales force and other efforts.
Shares of the Chicago company rose $10.73, or 5.7 percent, to $199.70 in morning trading on Wednesday.
Grainger reported net income of $190.7 million, or $2.63 per share, for the three months ended June 30. That's up from $169.9 million, or $2.34 per share, a year earlier.
Analysts surveyed by FactSet had expected $2.62 per share.
Revenue increased 13 percent to $2.25 billion from $2 billion, but missed Wall Street's estimate of $2.27 billion.
U.S. revenue rose 7 percent, while sales for its Canadian segment climbed 9 percent. Sales for operations in Asia, Europe and Latin America jumped 84 percent mostly because of contributions from a European business acquired in August and a Brazilian business purchased in April.
Grainger expects 2012 earnings of $10.50 to $10.80 per share. It previously predicted earnings of $10.40 to $10.80 per share. The company still anticipates a revenue increase of 12 percent to 14 percent, which implies $9.05 billion to $9.21 billion.
Analysts forecast earnings of $10.64 per share on revenue of $9.09 billion.
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