The Associated Press
Tuesday, April 13, 2010; 11:08 AM
WINONA, Minn. -- Fastenal said Tuesday that its first-quarter profits rose 15 percent, helped by a revival of sales of nuts, bolts and other fasteners to manufacturers.
Company shares rose $2.17, or 4 percent, to $54.07 in morning trading after the results surpassed Wall Street expectations.
"The improvement in the first three months of 2010 continues the trend we saw in the latter half of 2009," the company said in a statement. "The slow-down in the final three months of 2008 and all of 2009 relate to the general economic weakness in the global marketplace."
The company reported net earnings of $56 million, or 38 cents per share, up from $48.7 million, or 33 cents per share, in the year-ago quarter. Sales were up 6 percent to $520.7 million, helped by a 15.7 percent increase in sales to manufacturing customers during the quarter. Manufacturers historically make up about half of Fastenal's sales, but have been a weak spot in recent quarters. Overall manufacturing sales fell 18.8 percent in 2009, driven by an especially severe contraction in demand from industrial producers.
Sales to the nonresidential construction industry slid 14.7 percent during the first quarter.
Analysts surveyed by Thomson Reuters expected Fastenal Co. to earn 33 cents per share on revenue of $520 million.
http://www.washingtonpost.com/wp-dyn/content/article/2010/04/13/AR2010041302099.html?sub=AR
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