Graybar's 2008 Sales Surpass $5.40 billion

Net income rises 4.8 percent, resulting in strong cash flow from operations

ST. LOUIS, March 10, 2009 – Graybar, a leading distributor of electrical and communications products and related supply chain management and logistics services, announced today the company achieved record 2008 revenues and profits in the midst of widespread economic uncertainty and a challenging business climate.

Net sales were $5.40 billion in 2008, an increase of nearly $141 million, or 2.7 percent, over 2007. The company also posted net income of $87.4 million, up $3.9 million, or 4.8 percent, from the previous year. The employee-owned company also reported significantly lower debt levels and finished the year in a strong cash position.

In recent years, Graybar has continued to focus on improving productivity and asset management. The company's ongoing investments in technology have been a key element in support of growth, efficiency, innovation and service. Graybar's objective of sustainable growth and long-term superior returns for its employee shareholders continues to drive the company’s strategies. Graybar celebrates its 140th anniversary and 80 years of employee ownership in 2009.

Reynolds adds, "Our employee ownership model drives us to consistently focus on serving our customers and manufacturing partners. The results of our efforts are reflected in Graybar's healthy financial statements, including our low debt position. We are well positioned for these uncertain times and believe we are equally well prepared for when the economy turns the corner."

"The economic challenges of 2008 aligned our entire organization around a shared strategy," said Robert A. Reynolds Jr., chairman, president and chief executive officer of Graybar. "We focused on achieving profitable organic growth and improving our performance, which produced record results for the second year in a row."