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W.W. GRAINGER, INC. REPORTS RECORD SALES AND EARNINGS FOR 1993 THIRD QUARTER, NINE MONTHS

 CHICAGO, Oct. 14 /PRNewswire/ -- W.W. Grainger, Inc. (NYSE: GWW), reported that sales increased 11.4 percent to $698,835,000 in the third quarter ended Sept. 30, 1993, from $627,183,000 reported In the same 1992 period. Net earnings of $38,714,000, or 75 cents per share increased 4.4 percent from $37,081,000, or 70 cents per share.
 For the 1993 first nine months, sales of $1,965,425,000 increased 11.3 percent from sales of $1,765,792,000 in the same 1992 period. Net earnings before the cumulative effect of an accounting change increased 6.9 percent to $108,344,000, or $2.08 per share, from $101,367,000, or $1.90 per share. Effective Jan. 1, 1993, the company adopted Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes," resulting in a first quarter charge to 1993 net earnings of $1,428,000, or 3 cents per share. Net earnings for the 1993 first nine months, considering the cumulative effect of this accounting change, were $106,916,000, or $2.05 per share.
 Also effective Jan. 1, 1993, the company adopted SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." The adoption of this pronouncement had an immaterial effect on 1993 net earnings, since the company had adopted the accrual method of accounting for these benefits in 1989.
 The company's effective income tax rates for the 1993 third quarter and first nine months were 42.1 percent and 40.5 percent, respectively, versus 39.6 percent for the comparable 1992 periods. The 1993 rates reflect the cumulative effect of the Omnibus Budget Reconciliation Act of 1993 which increased corporate rates retroactively to Jan. 1, 1993. The 1993 first nine months income tax rate of 40.5 percent represents the company's current estimate for the full year 1993.
 W.W. Grainger, Inc., with 1992 sales of $2.4 billion, is a nationwide distributor of equipment, components, and supplies to the commercial, industrial, contractor, and institutional markets. GWW shares are traded on the New York and Chicago Stock Exchanges.
 W.W. GRAINGER, INC.
 Consolidated Statements Of Earnings
 (Unaudited, in thousands except for per share amounts)
 Period ended Three months Nine months
 Sept. 30, 1993 1992 1993 1992
 Net sales $698,835 $627,183 $1,965,425 $1,765,792
 Cost of merchandise sold 447,382 399,907 1,243,928 1,136,969
 Gross profit 251,453 227,276 721,497 628,823
 Warehousing, marketing, and
 administrative expenses 184,167 165,353 538,880 460,346
 Operating earnings 67,286 61,923 182,617 168,477
 Other income or (deductions)
 Interest income 1 51 479 1,598
 Interest expense (478) (424) (1,172) (1,840)
 Unclassified -- net 1 (156) 168 (408)
 Total (476) (529) (525) (650)
 Earnings before
 Income taxes 66,810 61,394 182,092 167,827
 Income taxes 28,096 24,313 73,748 66,460
 Net earnings before
 cumulative effect of
 accounting change $38,714 $37,081 $108,344 $101,367
 Cumulative effect of
 accounting change --- --- (1,428) ---
 Net earnings $38,714 $37,081 $106,916 $101,367
 Net earnings per common
 and common equivalent
 share before cumulative
 effect of
 accounting change $0.75 $0.70 $2.08 $1.90
 Cumulative effect of
 accounting change --- --- ($0.03) ---
 Net earnings per common and
 common equivalent share $0.75 $0.70 $2.05 $1.90
 Average number of common
 and common equivalent
 shares outstanding 51,504,939 52,236,839 52,170,644 53,338,070
 NOTE: The above results include a business acquired on May 1, 1992. (Supplemental financial information concerning the quarter and nine months ended Sept. 30, 1993 is available upon request).
 /CONTACT: Gloria Sinclair, investor relations coordinator of W.W. Grainger, 708-982-3517/
 (GWW)


CO: W.W. Grainger, Inc. ST: Illinois IN: SU: ERN

SH-MP -- NY017 -- 2166 10/14/93 11:13 EDT
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Publication:PR Newswire
Date:Oct 14, 1993
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