Fastener Companies Report Strong Opening Quarter Numbers

April 19

00:00 2010

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Alcoa Fastening Systems headquarters in Torrance, CA (courtesy AFS)

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Early first-quarter figures from publicly-held fastener companies look promising, with several firms boosting earnings estimates for the second quarter – and beyond.

The Fastenal Co. reported first quarter sales rose 6.4% to $520.8 million, boosted by a 15.7% jump in sales to OEMs. Q1 net earnings gained 15.1% to $56.03 million.

Alcoa said strong productivity gains and modest end-market improvement helped its Engineered Products segment, including fasteners, achieve a 42% sequential ATOI increase to $81 million despite lower sales during the opening quarter of 2010. Segment revenue dropped 15% to $1.07 billion, while third party shipments grew 12% to 46 kmt.

Grainger saw first quarter sales rise 14% to $1.7 billion, while net earnings increased 3% to $99. Earnings per share gained 5% to $1.31.

“Strong operating performance from the U.S. business was the story for the quarter,” stated CEO Jim Ryan. “The company’s solid execution, strong sales growth from all the businesses, particularly in March, combined with continued signs of strengthening in the U.S., Canadian and Mexican economies give us confidence to raise our 2010 sales growth guidance to a range of 9% to 12%,” up from the 6% to 9% growth forecasted in January.

MSC Industrial Direct reported net sales rose 12.4% to $395.5 million in the second quarter of fiscal 2010, with operating income growing 15.4% to $49.9 million and net income increasing 16.6% to $26.3 million. MSC said both inventory turns and days sales outstanding in receivables improved during the period, reflecting what CEO David Sandler called a “solid performance against a backdrop of improving market conditions.” ©2010 GlobalFastenerNews.com

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