Strong market outgrowth and SG&A leverage in a challenging market
Second Quarter Financial Highlights
- Sales of $2.8 billion with significant share gain in the U.S.
- Generated reported operating earnings of $205 million; adjusted operating earnings of $315 million
- Over $75 million in sequential SG&A cost savings
- Generated $232 million in operating cash flow and returned $86 million to shareholders through dividends
Grainger (NYSE: GWW) on July 23 reported results for the 2020 second quarter including sales of $2.8 billion in the quarter driven by significant share gains in the U.S. segment. We estimate the MRO market declined between 14% and 15% in the U.S.
"We remain grounded in our priorities of serving our customers well, helping our customers and team members focus on safety and well-being, and maintaining a strong financial position even in times like these," said DG Macpherson, Chairman and Chief Executive Officer. "During the second quarter, Grainger performed well. We gained significant share in a down market, fueled by elevated levels of pandemic product sales and improving trends in non-pandemic product sales throughout the quarter. On the cost side, we achieved significant leverage and generated over $75 million of sequential cost reductions contributing to strong operating cash flow and allowing continued investment in the business. The work our team members are doing resonates with our customers and communities and positions Grainger to support our customers and deliver results even in this uncertain time."