Fastenal Reports Sales Up, Earnings Down
Fastenal Reports Sales Up, Earnings Down
John Wolz
Reflecting a weakening North American economy, Fastenal reported the percentage of daily sales growth has dropped from 20.3% for January to 7.7% for June.
February sales growth fell 16.4%, March 11.7%, April 9.1% and May 9.5%.
Fastenal said the decline “reflects the overall weakening of the industrial economy we service in North America.”
Net sales for the six-month period ended June 30, 2001, rose 11.3% from the first half of 2000 to $405,923,000. Net earnings decreased 3.1% to $39,757,000 in the same period of 2001.
Despite the slowing growth, Fastenal announced plans to open 30 to 35 stores during the third quarter, which will push it past the 1,000 store mark. Fastenal opened 44 stores during the second to reach a 991 total. A total of 150 stores have opened during the past four quarters.
A company statement attributed the lower earnings to (1) decreased margins “caused.primarily by changes in product mix, (2) the additional expenses of store site openings, (3) the added impact of increases in utility, motor fuel and health care costs, and (4) the increase in depreciation expense associated with additions of property and equipment, most notably software and hardware for the management information system.” Fastenal..com �2001 FastenerNews.com
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