8/10/2010
HEADLINES
Fastenal’s Oberton: OEM Inventory a Thing of the Past
Fastenal continues to garner praise from market analysts.
Winona, MN-based Fastenal reported sales from fasteners and other items grew 20% to $571.2 million during the second quarter of 2010, while net earnings jumped 59% to $69.18 million.
Daily average sales to manufacturing customers during the second quarter nearly doubled its growth rate to 29.8% sequentially, while Q2 sales to non-residential construction customers improved 0.5% after a 14.7% dip in segment sales the previous quarter.
First-half sales increased 13% to $1.09 billion.
Analysts tout Fastenal’s “conservative” corporate culture as a positive trait.
“When they take a step in a more assertive manner, it typically means they feel good about their sales and their business prospects,” says Michael Jaffe, an analyst at Standard & Poor’s Equity Research.
Jaffe predicts Fastenal will grow earnings at an annual rate of 28% over the next three years.
Wall Street’s confidence comes amid a game-changing shift in operational strategy.
“We’re very optimistic that no one will ever rebuild their inventory, and they’ll depend on Fastenal to be their supply store for their factory,” stated CEO Will Oberton. Web: fastenal.com ©2010 GlobalFastenerNews.com
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