Fastenal Sales & Earnings Rise
Fastenal Sales & Earnings Rise
Jason Sandefur
Third quarter earnings for Fastenal Co. rose 21.7% to $23.3 million on sales of $258.3 million, an 8.5% increase.
Net sales for the first nine months of 2003 grew 8.3% to $743.3 million. The first nine months of 2002 included net sales of $16,819 from Fastenal�s DIY business, which was sold in October 2002. Adjusting for that sale, growth in net sales was 11% from 2002 to 2003. Net earnings for the first nine months of 2003 rose 9.5% to $64.2 million.
Fastenal has opened 106 new stores so far in 2003, including 35 in Q3 that increased its store total to 1,275. The company expects to open about 150 to 185 new stores this year.
Growth rates stabilized during Q3, countering �choppy� net sales growth during the first half of 2003, the company noted. However, the improvement was offset by large, low-volume sales, changes in product mix, and an inventory growth slowdown that lowered Fastenal�s savings on vendor incentive programs, including freight allowances.
The Winona, MN-based distributor of fasteners, tools and components has 4,703 employees, a decrease of 0.8% from December 31, 2002. Web: fastenal.com �2003 FastenerNews.com
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