This excerpt taken from the GWW 8-K filed Feb 7, 2007.
Reported Earnings Unchanged
CHICAGO, February 7, 2007 Grainger (NYSE:GWW) today announced it had used an incorrect number of average shares outstanding in calculating earnings per share in conjunction with its fourth quarter and year-end earnings release. Net earnings for the quarter of $99 million and year of $383 million are not affected. Earnings per share, however, were overstated by one cent for both the quarter and the year. For the quarter, the correct earnings per share are $1.13, and for the full year ending December 31, 2006, the correct earnings per share are $4.24. The growth rate of 12 percent versus 2005 EPS is unchanged. No other amounts in the release were affected other than earnings per share and average number of shares outstanding. A corrected copy of the Consolidated Statements of Earnings (Unaudited) for the three months and twelve months ended December 31, 2006, accompanies this release.
The error occurred in the year-end calculation when the number of shares outstanding was entered incorrectly. The company has revised its procedures to add additional reviews to prevent reoccurrence.
W.W. Grainger, Inc. (NYSE: GWW), with 2006 sales of $5.9 billion, is a leading broad line supplier of facilities maintenance products serving businesses and institutions in Canada, China, Mexico and the United States. Through a highly integrated network including nearly 600 branches, 18 distribution centers and multiple Web sites, Graingers employees help customers get the job done, saving them time and money by having the right products to keep their facilities running. Grainger is the national founding sponsor of the American Red Cross Ready When the Time ComesTM corporate volunteer training program. To view information about the company, including a history of daily sales by segment and a prerecorded message regarding fourth quarter and full year 2006 results, visit www.grainger.com/investor.
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