Fastenal Company nails growth in Q3

With onsite locations and vending machines driving growth, Winona, Minn.-based Fastenal reported net sales of $1.13 billion in the third quarter. That’s an increase of 11.8% compared to the third quarter of 2016. Net earnings increased 12.7% to $143.1 million.

“Our growth drivers, combined with a solid economy, are resulting in great growth,” said CEO Dan Florness.

Two notable growth drivers are industrial vending and onsite locations, the later defined as dedicated sales and service provided from within, or very close to, the customer’s facility, the company said. Fastenal’s installed vending machine count on Sept. 30 was 69,058, up 14.3% compared to a year ago. Sales through the vending machines continued to grow at a double-digit pace in the third quarter of 2017, primarily due to the increase in the installed base. As for onsite locations, the company now points to 555 active sites, up 47.6% compared to the same time last year.

The distributor of industrial and construction supplies said the pace of daily sales was groing at 15.3% in September, a pace unseen since late 2014.

The company opened 5 branches and closed 36 branches in the third quarter. In addition to the 555 onsite locations, Fastenal operates 2,418 public branch locations.