Fastenal reports strong earnings, sales

Company opened 90 stores in first nine months of 2010

The Fastenal Company today reported earnings of $200 million, or $1.36 a share, for the first nine months of 2010, compared to $140 million, or 94 cents a share, in the same period a year ago. Sales for the nine months ended Sept. 30th were $1.7 billion, compared to $1.5 billion in the same period a year ago.

Fastenal Company said Tuesday that third-quarter earnings were $75 million, or 51 cents a share, up from $47.6 million, or 32 cents a share, in the same period a year ago. Sales came in at $603.8 million, compared to $489.3 million for the quarter.

During the first nine months of 2010, Fastenal opened 90 new stores compared to 45 new stores in the same period of 2009. The 90 new stores represent an increase of 3.8% since December 31, 2009. Fastenal had 2,369 stores on December 31, 2009.

For the quarter, Fastenal's sales were $604 million, a 23% increase over $489 million in the third quarter of 2009. Third-quarter earnings rose 58% to $75 million, compared to $48 million in the third quarter of 2009. Earnings per share grew 59%, at 51 cents per share compared with 32 cents a share in the same period a year ago.

Fastenal's daily sales to manufacturing customers grew, on an annual basis, approximately 15.7%, 29.8%, and 30.6% in the first, second, and third quarters of 2010, respectively. In the first, second, third, and fourth quarters of 2009, the daily sales of this business contracted 16.0%, 25.2%, 22.8%, and 10.1%, respectively. For the year, total sales to manufacturing customers contracted 18.8% from 2008 to 2009.

Fastenal’s non-residential construction customers have historically represented 20% to 25% of the company’s business. The daily sales of this business contracted approximately 14.7% in the first quarter of 2010 and then grew 0.5% and 6.3% in the second and third quarters of 2010, respectively. In the first, second, third, and fourth quarters of 2009, the contraction was 6.4%, 19.6%, 25.3%, and 24.8%, respectively. For the year, Fastenal’s total sales to non-residential construction customers contracted 19.4% from 2008 to 2009.