W.W. Grainger beats profit estimates on resilient U.S. industrial demand

WW Grainger

26/10/2023 14:37

Oct 26 (Reuters) - Industrial parts provider W.W.
Grainger  GWW.N  beat analysts' expectations for third-quarter
profit on Wednesday as demand from its U.S. industrial clients
for maintenance and repair equipment remained resilient.
    The company sells safety, maintenance and repair equipment
to North American and Japanese industrial clients and domestic
consumers.
    Daily sales at the company's High-Touch Solutions segment,
which caters to manufacturing, warehousing and metalworking
industries in North America, were up 8.7% year-on-year.
    Spending on manufacturing and construction projects in the
U.S. has remained solid in the quarter amid efforts by the Biden
administration to bring strategically important semiconductor
manufacturing back to the United States. 
    The Illinois-based company reported a quarterly profit of
$9.43 per share, compared with analysts' average estimates of
$8.93 per share, as per LSEG data.
    It also benefited from customer acquisitions in its
Japan-based B2B e-commerce division, MonotaRO, but these gains
were offset by lower sales in its U.S.-based B2C e-commerce
platform, Zoro. 
    Total quarterly revenue was in line with analysts' estimates
at about $4.2 billion, up 6.7% from a year earlier.
    However, the company narrowed its full-year sales forecast
and now expects net sales of $16.4 to $16.6 billion, compared
with its previous forecast of $16.4 to $16.8 billion.

 (Reporting by Aishwarya Jain; Editing by Tasim Zahid)
 ((Aishwarya.Jain@thomsonreuters.com;))