4/14/2009
NEWS BRIEFS
Fastenal Slows Store Openings, Trims Workforce
Reacting to an entrenched recession, Fastenal said it has slowed store openings to 2% to 5% annually and limited new hires.
“We have stopped adding any headcount except for store openings and for stores that are growing,” the company stated. Fastenal trimmed its workforce by 6.6% to 12,736 during the first quarter of 2009.
The move comes amid a 13.6% drop in sales to $489.3 million during Q1, while net earnings declined 28% to $48.7 million. Sales were hit hardest in Fastenal’s industrial production business, including fasteners.
Fastenal opened 33 new stores during the first quarter, down 37% from the 53 it opened in the opening quarter of 2008. The company had a total of 2,344 stores at the end of March 2009.
Capital expenditures also declined. “We expect our capital expenditures will drop from approximately $95 million in 2008 to $65 million in 2009,” the company stated.
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