Fastenal 2001 Sales Up, Profits Down

John Wolz

Fastenal Company reported sales for 2001 increased 8.5% over the previous year to $809 million, but 2001 net earnings decreased 13.2% to $70.1 million.
Fourth quarter 2001 sales increased 4.3% over the same period of 2000, but net earnings dropped 29.4%.
Winona, MN-based Fastenal reported opening nine sites, bringing its total to 1,025. The total number of employees decreased 2.1% from the end of 2000 to the end of 2001.
Fastenal began the year with double digit percentage daily sales growth each month of the first quarter, single digit in the second and third quarter and 1.2% for October, a drop of 0.3% for November and 1.6% increase in December.
Earnings didn�t match sales growth because of lower margins “caused primarily by changes in product mix,” decrease in gross margin dollars from older stores, store opening expenses, increased utility and health care costs, and an increase in depreciation expense.
Fastenal opened 50 stores in the first quarter of 2001, 44 in the second, 25 in the third and nine in the final quarter for a total of 128 or 14.3% for the year. Fastenal had plans to open 100 to 150 stores during 2002. Web: Fastenal.com �2002 FastenerNews.com