6/24/2015 2:50:00 AM
NEWS BRIEFS
Fastenal CFO Sees Rebound After Rough Start
Despite widespread projections for solid gross-domestic-product growth this year, Fastener Co. CFO Dan Florness could tell the economy was not as solid as reported, The Wall Street Journal’s CFO Journal blog reports.
“In January and February we took a meaningful step backwards,” as industrial manufacturing customers delayed orders, Florness told CFO Journal. Conditions slowly began to improve in March and April.
“Florness, who has been CFO of the Minnesota-based fastening maker for 19 years, blamed its exposure to oil and gas exploration and production companies, which sharply dialed back their capital spending to adjust to the steep drop in prices since last summer,” writes Maxwell Murphy of CFO Journal.
“The trends are still deteriorating,” Florness said.
Florness added that if 3% GDP growth predictions materialized, Fastenal would produce double digit growth. He predicts pent-up demand will make for a strong finish to the year, though economic sluggishness could delay that recovery.
Fastenal Co. reported net sales in May edged up 0.3% to $314.3 million, with daily sales gaining 5.3% to $15.7 million.
Daily sales to manufacturing customers grew 4.1% in May, while daily sales to non-residential construction customers increased 1%.
During May, Fastenal continued to boost its workforce. Total personnel rose 7.4% to 19,312, including a 5.2% increase in distribution personnel to 2,246 workers, a 3.9% increase in store personnel to 10,887 workers, and a 4% increase in selling personnel to 12,221.
Fastenal opened three new stores in May, bringing its total number of new store openings to five during 2015.
During May news broke that Fastenal had acquired Cardinal Fastener from Dokka Fasteners for an undisclosed sum. The deal, which was completed in March, came weeks after Dokka parent company Würth announced that the Cardinal Fastener plant in Ohio, which opened in 1983 and was acquired by the Würth in 2011, would be closed and production shifted to Dokka Fasteners plant in Michigan.
Würth acquired Cardinal out of bankruptcy in 2011.
Related Stories:
• Fastenal Co. Acquires Cardinal Fastener
Related Links:
Share: