Fastenal Co. reported fastener sales dropped 2% in the first half of 20Fastenal graph16.

“Our market share gains continue to be strong, but the contraction in purchases from our existing customers, plus some price deflation, has eliminated our growth
and led to contraction,” the company stated. “This contraction lessened from the fourth quarter of 2015 into the first half of 2016; however, it worsened in June.”

Previously, Fastenal’s fastener product line saw its daily growth decrease from about 10% growth in the last six months of 2014 to about 6% contraction in the fourth quarter of 2015.
Overall Fastenal sales grew 2.6% to $2 billion in the first half of 2016, which included a 1.6% gain in the second quarter to $1.01 billion.

Six-month operating earnings declined 4.9% to $407.7 million, with net earnings down 3.8% to $257.8 million.

During the first half of 2016 Fastenal’s installed vending machine count increased 4.1% to 20,324.

Fastenal opened 27 stores in the opening half of 2016. The company also closed or consolidated 34 stores.