Fastenal Co.'s (FAST) first-quarter profit climbed a
bigger-than-expected 15% as its manufacturing customers drove sales
growth.
Sales to that segment, which traditionally accounts for half of
revenue, rose 16% during the period, more than offsetting a 15%
decline in the company's business selling parts to non-residential
construction companies.
Shares rose 3.3% to $53.60 in pre-market trading Tuesday as
results topped expectations.
Results at industrial parts companies such as Fastenal--a
distributor and retailer of clamps, bolts and other industrial and
construction supplies--are starting to rebound as the manufacturing
market stabilizes.
Profit rose to $56 million, or 38 cents a share, from $48.7
million, or 33 cents a share, a year earlier. Revenue climbed 6.4%
to $520.8 million.
Analysts polled by Thomson Reuters expected earnings of 33 cents
a share on $511 million in revenue.
Gross margin fell to 51.1% from 52.9%, but a 2.5% drop in
overhead costs helped offset the higher manufacturing costs.
Fastenal opened 29 stores during the period and closed five. As
of March 31, the company operated 2,392 stores.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com