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Fastenal Sales Up 23.4% in Third Quarter

The Fastenal Company, Winona, MN, (Nasdaq:FAST), No. 9 on MDM's list of the top 40 industrial distributors, reported sales for the third quarter ended Sept. 30, 2010, were $603.7 million, up 23.4 percent from the prior-year period, and profit grew 57.6 percent.

For the first nine months, sales were up 16.7 percent to $1.69 billion. Profit was $200 million.

In the first nine months of 2010, Fastenal opened 90 new stores, compared with 45 new stores in the same period in 2009. Overall, Fastenal has seen an increase of 3.8 percent in number of stores since Dec. 31, 2009.

There were 12,827 total employees as of Sept. 30, 2010, an increase of 6.5 percent from the 12,045 employees on Dec. 31, 2009.

Fastenal said the strengthening Canadian dollar (when compared with the U.S. dollar) and the acquisition of Holo-Krome in December 2009 boosted sales growth in the first nine months of 2010.

Fastenal also outlined its end-market performance in its third-quarter earnings release.

About 50 percent of its sales has historically been to customers in manufacturing. Daily sales to these customers grew about 15.7 percent, 29.8 percent, and 30.6 percent in the first, second, and third quarters of 2010, respectively. In the first, second, third, and fourth quarters of 2009, the daily sales of this business contracted. Sales to manufacturing customers contracted 18.8 percent from 2008 to 2009. The 2009 contraction was more severe in Fastenal's industrial production business and less severe in the maintenance portion of the manufacturing business.

Non-residential construction customers have historically represented 20 percent to 25 percent of its business. The daily sales of this business contracted 14.7% in the first quarter of 2010 and then grew 0.5 percent and 6.3 percent in the second and third quarters of 2010, respectively. In the first, second, third, and fourth quarters of 2009, the contraction was 6.4 percent, 19.6 percent, 25.3 percent, and 24.8 percent, respectively. Sales to non-residential construction customers contracted 19.4 percent from 2008 to 2009.

On a sequential basis, sales to manufacturing customers stabilized in May 2009 and then started to demonstrate patterns that resemble historical norms, according to Fastenal. This reversed the negative trend which began in October 2008. This stabilization and improvement was partially offset by continued deteriorization in non-residential construction business, which weakened dramatically in the first eight months of 2009, and then began to also demonstrate patterns that resemble historical norms.

More details from Fastenal.

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