Fastenal Co. (FAST) reported net sales of $246.7 million for October, up 21.4% from $203.2 million in the year-ago period. Average daily sales during the month amounted to $11.7 million versus $9.7 million in October 2010.
Daily sales to manufacturing customers (who represent almost 50% of revenues) improved 21.1% year over year in October 2011. Alongside, daily sales to the non-residential construction customers increased 18.7% year over year in the month under study.
The company opened eight new stores in the month, thus bringing the total store count to 2,575, spanning across Canada, Mexico, the Dominican Republic, Puerto Rico, Singapore, China, and the U.S.
Last month, Fastenal released its financial results for the third quarter of the year. The company posted a 29.1% increase in profit to $96.8 million from $75.0 million in the year-ago quarter.
On a per share basis, profit improved 32.0% to 33 cents from 25 cents a year ago. However, earnings per share were in line with the Zacks Consensus Estimate. Sales in the quarter rose 20.4% to $726.7 million, slightly above the Zacks Consensus Estimate of $724 million.
The increase in sales was attributable to aggressive store openings and an increase in the company’s non-residential customers, accounting for 20%–25% of sales historically. Sales to non-residential construction increased 15.8% compared with 6.3% in the year-ago quarter.
Meanwhile, sales to manufacturing customers (accounting for 50% of sales historically) increased 18.3%, but were much lower than 30.6% registered in the prior-year quarter.
Based in Winona, Minnesota, Fastenal is a leading national distributor of industrial and construction supplies having stores in Canada, Mexico, the Dominican Republic, Puerto Rico, Singapore, China, and the U.S.
The company’s subsidiaries include Fastenal Canada Company, Fastenal Company Services, Fastenal Company Purchasing, Fastenal Company Leasing, Fastenal Mexico Services S. de R.L. de C.V. and Fastenal Mexico S. de R.L. de C.V.
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