Grainger (NYSE: GWW) reports Q1 EPS of $1.25, versus the analyst estimate of $1.07. Revenue for the quarter was $1.47 billion, versus the consensus of $1.49 billion.
The Chicago-based company still beat Wall Street expectations, and its shares rose in premarket trading.
W.W. Grainger recorded net income of $96.4 million, or $1.25 per share, down from $114.2 million, or $1.41 per share, in the same period last year.Revenue for the quarter ended March 31 was $1.47 billion, down 12 percent from $1.66 billion in the same period last year.
Analysts surveyed by Thomson Reuters expected earnings of $1.06 per share on revenue of $1.48 billion."Businesses and institutions have responded to the recession by buying less and looking for ways to improve productivity," said James Ryan, president and chief executive of W.W. Grainger. "We do not believe that we've seen the bottom to the sales decline and expect increased pricing pressure throughout the remainder of the year."
W.W. Grainger said it will expand its sales force and offer more customer incentives in the second quarter, which is expected to cost between $25 million and $50 million in 2009.
As part of cost reduction plans announced in February, the company said it eliminated 200 employees and incurred severance expense of $5 million, or 3 cents per share, in the first quarter.
It said it expects to cut 300 to 400 workers this year.Shares of W.W. Grainger rose $2.76, or 3.6 percent, to $80 in premarket trading.
I do own shares of GWW and plan to buy more in the future.
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