DOW JONES NEWSWIRES
Fastenal Co.'s (FAST) fourth-quarter profit decreased 29% on
slack demand in the industrial production and nonresidential
construction businesses that fuel the company's bottom line.
Shares fell 4.1% premarket to $44 as results fell slightly short
of analysts' expectations.
The distributor of fasteners, nuts, bolts, clamps and other
industrial and construction supplies said the weakened economy hurt
sales, especially among manufacturing customers that constitute
half of the typical sales for the company. However, the company saw
respite in lower fuel prices and a stabilizing economy. Meanwhile,
new store openings will pick up and return to their historical rate
of 7% to 10% by the second half of 2010. The rate was lowered to 2%
to 5% last year.
Fastenal reported a profit of $44.5 million, or 30 cents a
share, down from $62.5 million, or 42 cents, a year earlier.
Revenue decreased 13% to $476.8 million.
Analysts surveyed by Thomson Reuters expected earnings of 31
cents a share on revenue of $479 million.
Gross margin narrowed to 49.9% from 53.4% due to deterioration
in vendor rebates.
Fastenal opened 69 stores during the year and as of Dec. 31, the
company operated 2,369 stores.
-By Joel Stonington, Dow Jones Newswires; 212-416-2934;
joel.stonington@wsj.com