PPE sales lift Fastenal in Q2

Fastenal Company reported second quarter sales increased 10.3% to $1.5 billion from second quarter 2019 sales of $1.37 billion.

Sales for the first six months of 2020 rose 7.4% to $2.876 billion compared with sales of $2.677 billion for the first half of 2019.

The Winona, Minn.-based company posted net earnings of $238.9 million for the second quarter, rising 16.7% from earnings of $204.6 million for the corresponding period a year ago. Net earnings for the first half of 2020 are up 10.7% to $441.5 million.

In its second quarter report, released this morning, Fastenal attributed some of its second quarter growth to a surge in personal protective equipment (PPE) sales during COVID-19 crisis, which offset declines in sales of in other product categories.

The surge in PPE sales included a big increase in meeting the needs of government, first responders, and critical infrastructure workers, Fastenal said.

Safety daily sales, including PPE, grew 116.3% in the second quarter of 2020 over the second quarter of 2019 and accounted for 34% of total sales. In contrast safety products represented 19.8% and 17.5% of total sales in the first quarter of 2020 and the second quarter of 2019.

“Sales of surge-type PPE were steady at high levels in April and May, before beginning to taper slightly in June,” the company reported. “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.”

In contrast too PPE sales, daily fastener sales were down 22.5% in April, fell 15.3% in May, and decreased 11.4% in June.

During the first six months of 2020, Fastenal signed 8,281 industrial vending devices, including 3,483 devices during the second quarter of 2020. 

The company had 1,212 active “onsite” locations as of June 30, 2020, representing an 18.1% increase compared to June 30, 2019. Fastenal’s defines its onsite locations as dedicated sales and service provided from within, or in close proximity to, the customer's facility.

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The bottom line: PPE sales help drive a 10.3% increase in Fastenal’s second quarter sales as profits jump 16.7% to $238.9 million.

Company info: Fastenal Company’s full second quarter 2020 report can be accessed here.