Fastenal reported fastener sales increased 11.3% to $423.7 million (34.4% of sales) in the fourth quarter of 2018. Non-fastener sales rose 14.6% during Q4.
Overall Q4 sales grew 13.2% to $1.23 billion, “driven by higher unit sales related primarily to continued strength in underlying market demand and contribution from our growth drivers, most notably industrial vending and onsite locations.”
“Pricing trended favorably, but trailed rising product cost in the period, generating incremental gross margin pressure,” the company stated. “Tariffs had a small impact on sales and profits in 4Q18, but a greater impact on our inventory growth. Discussions with customers about addressing tariffs have been encouraging.”
Q4 gross profit rose 10.6% to $587.8 million, while operating income increased 14.8% to $233.4 million and net earnings grew 10.7% to $168.8 million. Q4 operating margin improved 30 bps to 19%.
Fastenal signed 4,980 industrial vending devices during Q4, an increase of 16.7%.
The company opened three branches during the quarter and closed 35 branches. Additionally, two branches were converted from a public branch to a non-public location.
During 2018, Fastenal sales increased 13.1% to $4.96 billion, with gross profit up 10.9% to $2.4 billion. Operating income grew 13.3% to $999.2 million, while net earnings improved 29.9% to $751.9 million.
Fastenal signed 22,073 industrial vending devices in 2018, an increase of 14%. The company’s installed device count was 81,137, an increase of 13.6%.
Capital spending during the year totaled $166.8 million, reflecting “higher spending for hub equipment and property as well as vending equipment.” Web: Fastenal.com
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