Jason Sandefur

Strong fastener sales and price increases helped Fastenal Co. post a 24.5% revenue increase to $1.2 billion during 2004, while net income grew 55.7% to $131 million. The company said it raised prices by as much as 4% during the year. Fastenal said its ability to continue raising prices to offset steel price hikes should allow it retain some of the increased gross profit margin.
Fastenal opened 219 stores in 2004, a 16.7% increase from a year earlier. The company operates 1,533 stores and has 5,502 site employees, a 14% improvement from 2003. Fastenal plans to open as many as 275 new stores in 2005.
Inventory grew 32% to $74 million during the year, allowing Fastenal to avoid many “fill-in” buys at a premium price.
For the fourth quarter, sales grew 26.6% to $318.5 million, while net earnings soared 67.3% to $33.3 million. Web: fastenal.com �2005 FastenerNews.com