Fastenal Co.'s (FAST) second-quarter profit rose 59%, topping
expectations, on a sales rebound that pushed margins higher.
Results at the retailer of industrial parts--which sells bolts
and safety helmets and other industrial and construction
supplies--was hurt by customer woes during the financial crisis.
While the operation that sells products to manufacturing customers
has improved, sales to non-residential construction clients still
lag due to continuing construction lulls.
Daily sales to manufacturers surged 30% in the second quarter
after a 25% slump a year ago. But nonresidential construction saw a
0.5% increase, after a 20% slide last year, as Fastenal had growth
in the sector for both May and June.
The company reported a second-quarter profit of $69.2 million,
or 47 cents a share, up from $43.5 million, or 29 cents a share, a
year earlier. Revenue increased 20% to $571.2 million.
Analysts polled by Thomson Reuters most recently estimated
earnings of 44 cents and $569 million in revenue.
Gross margin rose to 52.1% from 51.1%.
Fastenal opened 45 stores during the period and closed eight.
The company operated 2,407 as of the end of June.
Shares closed at $52.62 Monday and were inactive premarket. The
stock has risen 26% this year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037; jodi.xu@dowjones.com;