8/6/2012 4:49:00 PM
HEADLINES
STOCKS: Fastenal In the Blue-Black
Fastenal Co. reported net sales grew 14.7% to $804.9 million in the second quarter of 2012, hampered by a slowdown in the industrial production market during the period. Pre-tax earnings gained 19.2% to $179 million, while net earnings climbed 19.3% to $112.3 million.
Fastenal said its end-market growth rate slowed to 15.8% in Q2, down from 20.3% in the previous quarter, which was slightly higher than the 20% rate of end-market growth the company experienced in 2011.
“The best way to understand the change in our industrial production business is to examine the results in our fastener product line.
“In the first three months of 2012, the daily sales growth in our fastener product line was approximately 15.4%. This dropped to 10.5%, 6.1%, and 8.6% in April, May, and June, respectively.”
Six-month sales gained 17.2% to $1.57 billion, with pre-tax earnings up 21.9% to $340.2 million and net earnings improving 22.4% to $212.5 million.
Vending machine installations are soaring in 2012, driving sales and earnings gains. The company installed 3,238 new machines in Q2, driving its six-month vending machine growth rate up 75% to 13,036. Daily sales growth to vending machine customers rose 34.3% in Q2.
In the first half of 2012 Fastenal opened 53 stores, bringing its total to 2,635. It increased its workforce 2.7% to 15,578 employees.
Fastenal said the cumulative growth in daily sales from January to June has fallen short of its benchmark figure, as well as the actual results in 2011 and 2010.
“This fact, as well as the choppiness of the year in general, has caused us to approach the year with a conservative tone.”
Fastenal pointed to the Purchasing Manufacturers Index — a composite index of economic activity in the manufacturing sector — published by the Institute for Supply Management. The PMI has been falling for the past three months, ending in June at 49.7 — its lowest point since 2009. ©2012 GlobalFastenerNews.com
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