July 15, 2010 / 12:53 PM / in 7 years

UPDATE 2-Grainger Q2 tops Street view; raises 2010 outlook

* Q2 adj EPS $1.65 vs est $1.50

* Raises 2010 EPS outlook to $6.10-$6.40

* Shares up 2 pct (Adds details, share movement)

BANGALORE, July 15 (Reuters) - Industrial distributor WW Grainger Inc GWW.N posted better-than-expected quarterly results, helped by strong sales growth in the United States and Canada, and raised its outlook for 2010.

The company expects full-year earnings of $6.10 to $6.40 a share, excluding special items, on sales growth of 12 percent to 14 percent.

Grainger was previously expecting a profit of $5.70 to $6.10 a share, on sales growth of 9 percent to 12 percent.

The company’s sales growth so far in July is consistent with trends in June, as it continues to benefit from the Gulf Coast oil spill clean up efforts, Grainger said in a podcast.

The company, which offers products such as oil booms, degreasers and safety supplies among other things, said June daily sales in the United States were up 14 percent, including 1 percent related to the oil spill clean up efforts.

Total company sales were up 18 percent in June on a daily basis from a year ago.

Grainger offers over 900,000 products and sells almost everything from abrasives to refrigerants to vacuum valves.

For the second quarter, the company posted earnings of $129.1 million, or $1.73 a share, compared with $92.5 million, or $1.21 a share, a year ago.

Excluding a gain of 8 cents a share related to a policy change for employee paid time off, the company posted earnings of $1.65 a share, beating analysts’ expectations of $1.50 a share, according to Thomson Reuters I/B/E/S.

Revenue at the company rose 16 percent to $1.78 billion, with the United States and Canada accounting for 84 percent and 12 percent of sales, respectively.

Analysts were expecting revenue of $1.76 billion.

The company expects to record a gain of 8 cents to 9 cents a share for the remaining quarters in 2010, related to employee paid time off policy.

Shares of the company were up 2 percent at $105.33 Thursday morning on the New York Stock Exchange. (Reporting by Amulya Nagaraj in Bangalore; Editing by Anne Pallivathuckal)

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