Fastenal posts solid Q3
Sales, earnings, and locations all grow for the Minnesota distributor.
Fastenal, the construction supplies distributor, reported third quarter 2019 sales increased nearly 8% to $1.38 billion from net sales from net sales of $1.28 billion in the third quarter 2018.
The Winona, Minn.-based company also reported third quarter net earnings rose 8% to $213.5 million from earnings of $197.6 million for the same period a year ago.
For the first 9 months of the year, Fastenal said it had signed 16,713 industrial vending devices and 5,671 devices during the third quarter of 2019. The company’s installed device count on September 30 was 88,327, an increase of 12.2% over September 30, 2018.
Daily sales through vending devices grew at a mid-teens pace in the third quarter of 2019 over the third quarter of 2018 due to the increase in the installed base. This does not include more than 15,000 vending devices deployed as part of a lease locker program. Fastenal also said it expect to sign approximately 22,000 vending devices in 2019, slightly below its previous goal of 23,000 to 25,000 units.
For the first 9 months Fastenal also signed 283 new onsite locations, which are defined as dedicated sales and service provided from within, or in close proximity to, the customer’s facility. The comapy signed 84 new onsite locations during the quarter. As of Sept. 30, Fastenal had 1,076 active sites, representing an increase of 30% from September 30, 2018.
Daily sales through onsite locations, excluding sales transferred from branches to new onsites, grew at a low-teens pace in the third quarter of 2019 over the third quarter of 2018, with weak demand impacting more mature sites. Fastenal’s goal for signings in 2019 remains 375 to 400.
The full third quarter earnings report from Fastenal can be read here.
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