Fastenal Lowers Earnings Projection
Fastenal Lowers Earnings Projection
John Wolz
Fastenal Company announced second quarter 2001 earnings will be lower than expected because of slower growth and a weakening of the North American industrial market.
In last year’s second quarter, Fastenal earned about $21 million, or 55 cents a share, on sales of $189 million, including a $41,000 charge on the disposal of property and equipment.
At the beginning of the quarter, Fastenal had expected second quarter sales growth of 12%. Instead, the company has seen daily sales grow 9.1% in April and 9.5% in May.
In addition to the slowing economy, Fastenal blamed the drain of the new store openings, gross margin pressure due to changes in its product and customer mix and a rise in fuel and health care costs.
Fastenal had opened 84 stores for the year to date through May. Web: fastenal.com �2001 FastenerNews.com
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