W.W. Grainger, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. For the quarter, the company's net sales were $2,478,258,000 compared to $2,510,959,000 a year ago. Operating earnings was $251,626,000 compared to $266,514,000 a year ago. This decrease was driven by the 1% sales decline and a lower gross profit margin, partially offset by operating expense leverage as expenses declined at a faster rate than sales. Earnings before income taxes were $234,933,000 compared to $261,713,000 a year ago. Net earnings were $149,171,000 compared to $151,114,000 a year ago. Net earnings attributable to the company were $145,232,000 compared to $148,839,000 a year ago. Diluted earnings per share were $2.30 compared to $2.14 a year ago. Net earnings adjusted were $157,853,000 compared to $194,863,000 a year ago. Diluted earnings per share adjusted were $2.49 compared to $2.80 a year ago. Operating cash flow was $256 million in the 2015 fourth quarter versus $300 million in the 2014 fourth quarter. The company used the cash generated during the quarter and proceeds from debt to invest in the business and return cash to shareholders through share repurchase and dividends. Gross capital expenditures were $121 million in the 2015 fourth quarter versus $147 million in the fourth quarter of 2014.

For the year, the company's net sales were $9,973,384,000 compared to $9,964,953,000 a year ago. Operating earnings was $1,300,320,000 compared to $1,347,117,000 a year ago. Earnings before income taxes were $1,250,705,000 compared to $1,334,386,000 a year ago. Net earnings were $785,174,000 compared to $812,296,000 a year ago. Net earnings attributable to the company were $768,996,000 compared to $801,729,000 a year ago. Diluted earnings per share were $11.58 compared to $11.45 a year ago. Net cash provided by operating activities was $1,011,657,000 compared to $994,455,000 a year ago. Additions to property, buildings and equipment were $373,868,000 compared to $387,390,000 a year ago. Net earnings adjusted were $793,123,000 compared to $857,982,000 a year ago. Diluted earnings per share adjusted were $11.94 compared to $12.26 a year ago.

The company reiterated its 2016 sales and earnings per share guidance issued on November 12, 2015. The company continues to expect 1% to 7% sales growth and earnings per share of $10.80 to $13.00. The company is currently projecting a tax rate of 35.2% to 36.2% in 2016 compared to the prior projection of 36.3% to 37.3% on November 12, 2015. The lower tax rate is driven by the incremental benefit from the company's second clean energy investment which closed in early January of this year. The company expects gross profit margins to be down 50 to 70 basis points for full year 2016. For the full year, the company now expects operating margin will be down 40 to 150 basis points, driven by 2015 results that were better than November guidance, including the $0.16 per share of nonrepeating operating benefits and lower 2016 expectations for Canada.

For the first quarter, the company forecast gross profit margins to be will be down 175 to 225 basis points versus the 2015 first quarter, reflecting the change in accounting for supplier funding, which has an effect of about 70 basis points and the expectation of lower performance in Canada.