Fastenal Co. reported fastener sales during 2016 declined 2.3%, which included a fourth quarter drop of 2.4%.

The previous year, fastener sales at Fastenal fell 1.4%, while in 2014 fastener sales grew 6.9%. The daily sales growth of the fastener product line peaked at over 10% in the second half of 2014. The rate of growth decelerated in the first quarter of 2015, began contracting in the third quarter of 2015, and continued to contract throughout 2016.

Overall Fastenal sales in 2016 increased 2% to $3.96 billion, with gross profit up 0.8% to $1.96 billion and operating income down 4% to $795.8 million. Full-year net earnings dropped 3.3% to $499.5 million.

Capital expenditures totaled $183 million, driven by the purchase of industrial vending machines related to the February 2016 locker lease program as well as spending on automation in certain distribution centers.

Q4 sales grew 2.7% to $947.95 million, with operating income rising 1.9% to $182.5 million and net income increasing 2.6% to $114.8 million.

Fastenal said its sale of safety supplies equaled 15.3% of total sales in Q4, represents the company’s second largest product line after fasteners. Daily sales of safety supplies improved to 9.3% annual growth in 2016.

During 2016 Fastenal opened 40 stores and closed or consolidated 144 stores.

Employee headcount was reduced by 1,122 people during the year, including 995 store employees. Web: fastenal.com