The 2020 Mid-Year Economic Update_long

Fastenal’s Sales Up 10.3% in 2Q

June sales increased 20.4% over the same month a year ago as the company's safety and PPE sales continued to bolster company during pandemic.
Fastenal

Fastenal Co. (Nasdaq: FAST), Winona, Minnesota, reported second-quarter sales of $1.5 billion, a 10.3% increase compared with same period a year ago. Quarterly profit was $238.9 million, a 16.7% increase compared to the year-ago period.

Sales for the first six months were $2.9 billion, a 7.4% increase compared with the first six months of 2019. Profit for the first six months increased 10.7% to $441.5 million.

Safety sales, including personal protective equipment (PPE), increased 116.3% in the second quarter and accounted for 34% of total sales. Other products’ daily sales declined 7.5% in the period and accounted for 40% of total sales. Manufacturing and non-residential construction end markets were down 9.4% and 10.3% on a daily basis, respectively, when compared to the second quarter of 2019, while government business was up 266.7% on a daily basis with sales to health care organizations.

“There was significant variation in our sales patterns through the second quarter of 2020,” the company wrote in its Q2 release. “Sales of surge-type PPE were steady at high levels in April and May, before beginning to taper slightly in June. As we enter the third quarter of 2020, and as the chaos surrounding the pandemic and our pipeline of orders lessens, we expect surge-type orders to decline. This may be partly mitigated by businesses reopening, more supply becoming available, companies increasing just-in-case quantities on hand and/or additional pandemic-related developments; however, the magnitude and duration of this activity is difficult to project at this time.”

June sales increased 20.4% to $524.3 million over the year-ago period. The company reported daily sales of $23.8 million, up 9.5% versus a year ago.

By region, daily U.S. sales grew 10.5% in June. By end market, daily manufacturing sales declined 8.2% while non-residential construction dipped 5.5%.

Looking at product lines, safety was again the saving grace for the company, notching a 94.9% increase in June, the company said. Fastener sales dropped 11.4% and the “other” category was down 6.3%.

Photo courtesy Fastenal Co.

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