Fastenal Profit Strong Despite Fuel Cost Increases; Announces Stock Split
Fastenal Profit Strong Despite Fuel Cost Increases; Announces Stock Split
Jason Sandefur
Despite rising energy costs and losing four stores in Hurricane Katrina, Fastenal Co. reported sales for the third quarter of 2005 rose 23.5% to $402.2 million, while net earnings jumped 32% to $45.97 million.
The company also announced a two-for-one stock split that will take effect on November 10. After the split there will be 151,054,752 shares of Fastenal’s common stock outstanding.
Katrina completely destroyed four Fastenal stores and damaged another 11. Employees were displaced, but Fastenal reported no employees died in Katrina’s aftermath.
Sales for the first nine months of 2005 increased 23.8% to $1.14 billion, while net income soared 30.6% to $127.65 million. Fastenal opened a total of 184 new stores during the first three quarters of 2005. Rising fuel prices took a toll on profits, as vehicle fuel costs for the company’s freight and delivery truck fleet have risen 34.3% to $1,677 since the first quarter of 2005. Web: fastenal.com �2005 FastenerNews.com
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