Fastenal on Friday reported stronger third-quarter sales and earnings despite continued sluggishness in its fastener business.
The Minnesota-based distributor — ranked no. 4 on ID’s 2024 Big 50 — posted more than $1.9 billion in net sales between July and September, an increase of 3.5% compared to the same window last year. On a daily average basis, sales were up by just shy of 2% in the latest quarter.
Fastenal officials attributed the increase to growth among larger customers and at its newer “Onsite” locations in company facilities. The pricing environment was “stable” throughout the quarter, but disruptions attributed to Hurricane Helene in the Southeast dented daily sales by an estimated 5 to 25 basis points.
The company reported operating income of $388 million and net income of $298 million in the quarter — up 0.4% and 0.9% year-over-year, respectively — while gross profit rose 1.3% to nearly $859 million.
Sales of the company's fasteners were down among both MRO and OEM customers and off by 4% in total, which officials continue to attribute to broader weakness in the industrial sector. Sales of all other product lines were up by 4.7% year-over-year, including a 6.8% jump in safety supplies, which benefited from growth among warehouse customers.
Sales to manufacturing customers were up by 3% in the last quarter, while other markets were off by 1.5% — thanks to a 3.6% slide in non-residential construction and an 11.3% drop in the reseller segment.
Fastenal officials noted that daily average sales through its “eBusiness” operations rose by more than 25% in the quarter and accounted for more than 30% of its total July-September sales. The company said that it opened 93 new Onsite locations in customer facilities in the third quarter, as well, bringing its total to more than 300 opened so far in 2024.
Fastenal also issued its monthly sales report for September on Friday, which detailed a 3.2% increase in sales compared to the same month in 2023.