9/29/2010 3:01:00 PM
NEWS BRIEFS
Fastenal “Back on a path to growth”
Recent reports indicate Fastenal is back on track to grow its business.
The Winona, MN-based distribution giant plans to drive operating margins higher by increasing its average store size.
Speaking at the Morgan Keegan Industrial/Transportation Conference, CEO Dan Florness said the goal is to take the average store size of $70,000-$75,000 a month to about $125,000 a month in sales. Operating margins will grow through leveraging the distributor’s fixed costs.
“We believe the recession may have delayed our goal by a couple of years, but the logic behind it is as sound as it was a few years ago,” Florness said.
Additionally, Fastenal plans to grow its number of stores in the U.S. and Canada from 2,400 to as many as 3,500.
In the past 15 years, fasteners have fallen as a percentage of sales — 49% in 2009 as compared to 85% in 1995. But the amount has risen to more than $900 million based on the company’s overall earnings last year. ©2010 GlobalFastenerNews.com
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