Fastenal’s 3Q sales and earnings rise 17 percent
Industrial Distribution staff -- Industrial Distribution, 10/13/2008 8:03:00 AM
The Fastenal Co. posted sales of $625 million during the third quarter, up 17.1 percent compared with $533.8 million during the same period last year.Net earnings for the Winona, Minn.-based fastener and MRO distributor rose 17.3 percent to $72.9 million, compared with $62.1 million during the thirds quarter of 2007.
The increases came despite a $10 million settlement of a class action lawsuit filed by former employees, which accused Fastenal of improperly exempting some employees from the federal Fair Labor Standards Act and corresponding state wage and hour laws in California, Oregon, and Pennsylvania.
“While we deny the allegations underlying the lawsuit, we decided to enter into the settlement agreement in order to avoid significant legal fees, the uncertainty of a jury trial, distractions to our operations and other expenses and management time that would have to be devoted to protracted litigation,” the company said in a statement. “The expense related to this legal settlement lowered our bonus payout by approximately $1.8 million for the third quarter of 2008. After factoring in the reduction of our bonus payout, this legal settlement resulted in a pre-tax expense of approximately $8.2 million for the quarter.”
Fastenal ranked ninth on INDUSTRIAL DISTRIBUTION's 2008 Big 50 list of distributors, with 2007 sales of $2.1 billion.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
