1/19/2010
NEWS BRIEFS
Fastenal Sales Fall 17.5% Amid Store Opening Declines
Company shed 1,500 workers as earnings fell

The Fastenal Co. reported net sales dropped 12.5% to $476.75 million during the fourth quarter of 2009, while net earnings slipped 28.8% to $44.5 million.

Full-year sales decreased 17.5% to $1.93 billion as “the weakened economy continues to have a substantial impact on our business,” the company stated. Net earnings declined 34% to $184.3 million in 2009.

Hit hardest was Fastenal’s industrial production business, with a 18.8% drop in manufacturing customer sales – historically about half the company’s revenue. Likewise, the company’s non-residential construction business (historically 20% to 25% of sales) contracted 19.4%.

Fastenal opened 69 new stores during 2009, down 57% from the 161 stores it added in 2008. The company also closed 10 locations and “converted one location to a customer only type,” bringing its store total to 2,369.

Fastenal shed 11.7% of its workforce in 2009, ending with 12,045 employees at year’s end.

Capital expenditures totaled $52.5 million on reduced spending for computer software and equipment, real estate, and vehicles. Fastenal expects to spend about $40 million in capital expenditures in 2010.

During the year Fastenal acquired certain assets of socket head screw product manufacturer Holo-Krome, which was part of Danaher’s Tool Group. Terms were not disclosed.

Fastenal was quick to tamp down concerns about Holo-Krome’s current distribution network and existing facilities. CFO Dan Florness said Fastenal plans to grow the Holo-Krome business, so the acquisition won’t affect current distributors or force layoffs or facility consolidations. Cory Jansen, executive vice president of internal operations, will oversee the Holo-Krome business.

Fastenal’s manufacturing division is comprised of five facilities and represents about 5% of overall business. West Hartford, CT-based Holo-Krome adds one facility and about 90 employees to Fastenal.

Winona, MN-based Fastenal operates stores in all 50 states and Canadian provinces; Puerto Rico; Mexico; Singapore; Netherlands; Hungary; Malaysia; and China. Fastenal has 14 distribution centers in 10 U.S. states, Canada and Mexico. ©2010 GlobalFastenerNews.com

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Related Links:

• Fastenal

• Holo Krome