Global Fastener News

Fastenal Sales & Profit Continue Growth

Jason Sandefur

The Fastenal Co. reported sales grew 18.8% to $1.81 billion during 2006, while net earnings increased 19.3% to $199 million as diesel fuel prices stabilized after a 31% spike in 2005.
“Rising fuel prices did take a toll on (2006), but there was some relief in the final four months,” the company stated.
During the fourth quarter of 2006 the diesel fuel per gallon cost dropped below $2.90. Average total vehicle fuel costs per month in 2006 increased 29% to $2,003.75.
Full-year margins were also boosted by “improvements in our direct sourcing operations.”
Q4 sales gained 16.8% to $448.73 million, and net earnings improved 16.4% to $45.6 million.
During 2006 Fastenal opened 245 new stores, representing a 14% jump in total stores to 2,000. There were 7,174 site employees as of December 31, 2006, an increase of 12.2%.
Fastenal announced a program to repurchase up to 1 million additional shares of its common stock. Fastenal purchased 474,000 outstanding shares in 2006 at an average price of $36.49 per share. Web: fastenal.com �2006 FastenerNews.com