FAST Fastenal Company

Fastenal Co. (FAST) reported net sales of $222.3 million for July 2011, up 16.6% from $190.7 million, a year ago. Average daily sales during the month amounted to $11.1 million versus $9.1 million in July 2010.

Daily sales to manufacturing customers (who represent almost 50% of revenues) improved 16.6% in July 2011 as compared with the July 2010 daily sales performance. Alongside, daily sales to non-residential construction customers increased 18.9% year over year in the month under study.

Four new stores were opened in the month such that the total store count of the company at the end of July amounted to 2,562 in Canada, Mexico, the Dominican Republic, Puerto Rico, Singapore, China and all the 50 states in the U.S.

Last month, Fastenal released its financial results for the second quarter of the year. The company posted a 36% increase in profit to $94.1 million in the second quarter of the year from $69.2 million a year ago.

On a per-share basis, profit improved 39% to $0.32 from $0.23 a year ago, nearly meeting the Zacks Consensus Estimate of $0.31.

Sales in the quarter rose 23% to $701.7 million, higher than the Zacks Consensus Estimate of $699 million. Gross profit during the quarter increased 23% to $366.2 million (52.2%) from $297.7 million (52.1%) in the second quarter of 2010.

The increase in sales was due to aggressive store openings and an increase in the company’s non-residential customers, accounting for 20%–25% of sales historically. Sales to non-residential construction increased to 15.8% from 0.5% in the same quarter last year. Meanwhile, sales to manufacturing customers (accounting for 50% of sales historically) declined to 18.5% from 29.8% a year ago.

Based in Winona, Minnesota, Fastenal is a leading national distributor of industrial and construction supplies having 2,565 stores in Canada, Mexico, the Dominican Republic, Puerto Rico, Singapore, China and all the 50 states in the U.S as of June 30, 2011. During the first half of 2011, the company opened 75 new stores.

The company’s subsidiaries include Fastenal Canada Company, Fastenal Company Services, Fastenal Company Purchasing, Fastenal Company Leasing, Fastenal Mexico Services S. de R.L. de C.V. and Fastenal Mexico S. de R.L. de C.V.

 
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