Fastenal reported fastener daily sales declined 16.4% year over year in the second quarter of 2020 to $392.3 million (26% of total sales) as sales of safety equipment (PPE) surged 116.3% during the quarter.  Fastener sales totaled $449.7 million (32.9% of total sales) during the first quarter of 2020 and $455.6 million (34.5% of total sales) during Q2 of 2019.

In April 2020, fastener daily sales fell 22.5%, while in May the rate of decline moderated to a 15.3% decline and in June fell only 11.4%.

“The activity levels experienced in June remain below those that existed in the first quarter of 2020,” the company stated.  “Whether our traditional business (fasteners) continues to improve in the third quarter from June levels of activity, and at what pace, remains difficult to project.”

Total Q2 sales at Fastenal rose 10.3% to $1.51 billion, led by strong demand for PPE, which accounted for 34% of total sales.  Other products’ daily sales declined 7.5% year over year.

Sales to manufacturing customers dropped 9.4% and sales to non-residential construction customers fell 10.3%, while government sales jumped 266.7%, with sales to health care organizations more than quadrupling.

Q2 gross profit, as a percentage of net sales, declined 240 basis points to 44.5% “as lower-margin safety sales rose sharply as a proportion of our total sales relative to higher-margin fastener sales.”  Operating income increased 14.9% to $316 million, with net earnings up 16.7% to $238.9 million.

In 2020, Fastenal has cut 1,464 jobs, reducing its headcount by 6.6% to 20,667.

During the first six months of 2020, total sales grew 7.4% to $2.88 billion.  Gross profit increased 3.4% to $1.31 billion, with operating income gaining 9.5% to $587.3 million and net income up 10.7% to $441.5 million.

During the first half, Fastenal signed 8,281 industrial vending devices, including 3,483 devices during Q2, increasing its installed device count 7.9% to 92,615. Daily vending sales declined at a low double-digit pace in Q2.

First-half Onsite locations increased by 125, including 20 in June, bringing its Onsite total to 1,212 (up 18.1%).

In contrast, Fastenal opened for branches in Q2 and closed 35.  Web: Fastenal.com