November Sales Improve at Fastenal

Fastenal Co. (FAST - Analyst Report) reported net sales of $234.4 million for the month of November, up 22.2% from $191.8 million posted in the year-ago period. Average daily sales during the month amounted to $11.2 million versus $9.1 million in November 2010.

Daily sales to manufacturing customers (accounting for almost 50% of revenues) improved 20.9% year over year in November 2011. Alongside, daily sales to non-residential construction customers increased 15.4% year over year for the same month.

The company opened eight new stores in the month, thus bringing the total store count to 2,583, spanning across Canada, Mexico, the Dominican Republic, Puerto Rico, Singapore, China, and the U.S.

In October, Fastenal released its financial results for the third quarter of 2011. 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. Total sales in the quarter rose 20.4% to $726.7 million, slightly ahead of the Zacks Consensus Estimate of $724 million.

The increase in total 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 increased 18.3%, but were much lower than the year-ago level of 30.6%.

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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