Solid Q4 sales for Fastenal
Fastenal, the fastener, hardware and tools distributor, reported fourth quarter 2017 net sales increased 14.8% to $1.09 billion compared to net sales of $948 million in the fourth quarter of 2016.
For the 12-month period ended Dec. 31, 2017, net sales rose 10.8% to $4.39 billion from $3.96 billion in 2016.
“A return to double-digit sales and pre-tax earnings growth in 2017 was a great way to celebrate our 50th year in business,” said Dan Florness, Fastenal president and CEO. “Our customers’ demand improved, this demand lifted our business. Also encouraging was how the hard work of Fastenal employees generated accelerating signings and sales growth in our growth drivers. This momentum, our ability to leverage operating expenses, and the benefits of tax reform have set up 2018 to be another strong year for Fastenal.”
The company said its acquisition of Manufacturers Supply Company (Mansco) in March 2017 increased sales by 1.4%. The remaining portion of the increase was driven primarily by higher unit sales.
Fastener products represented 35% of sales in the fourth quarter of 2017. Daily sales of fastener products grew 13.4% in total, of which 3.9 percentage points were attributable to the recently acquired Mansco business. Sales of non-fastener products represented 65% of sales in the fourth quarter of 2017 and grew 16.1% on a daily basis, Fastenal reported.
Net earnings during the fourth quarter of 2017 increase of 32.8% to $152.4 million from net earnings of $114.8 million in the fourth quarter 2016. Net earnings for 2017 rose 15.8% to $578.6 million from net earnings of $499.4 million in 2016.
During the fourth quarter, the company opened three branches and closed 37. At the end of the fourth quarter, Fastenal operated 2,988 locations compared to 2,904 at the end of 2016.
