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Fastenal Sales Up 15%
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2012-11-23
Fastenal Co. reported net sales grew 14.7% to USD804.9 million in the second quarter of 2012, hampered by a slowdown in the industrial production market during the period. Pre-tax earnings gained 19.2% to USD179 million, while net earnings climbed 19.3% to USD112.3 million.
Fastenal said its end-market growth rate slowed to 15.8% in Q2, down from 20.3% in the previous quarter, which was slightly higher than the 20% rate of end-market growth the company experienced in 2011. "In the first three months of 2012, the daily sales growth in our fastener product line was approximately 15.4%. This dropped to 10.5%, 6.1%, and 8.6% in April, May, and June, respectively." Six-month sales gained 17.2% to USD1.57 billion, with pre-tax earnings up 22% to USD340.2 million and net earnings up 22.4% to USD212.5 million.
Vending machine installations are soaring in 2012, driving sales and earnings gains. The company installed 3,238 new machines in Q2, driving its six-month vending machine growth rate up 75% to 13,036. Daily sales growth to vending machine customers rose 34.3% in Q2.
In the first half of 2012 Fastenal opened 53 stores, bringing its total to 2,635. It increased its workforce 2.7% to 15,578 employees.
Other Stock Results from FIN Include:
Wesco Aircraft Holdings reported revenue grew 5.2% to USD189.3 million in its fiscal third quarter ended June 30, 2012, driven by a 34.5% increase in international sales. Fiscal Q3 net income increased 59% to USD22.3 million. Nine-month revenue gained 6.5% to USD564 million, with net income improving 13% to USD465.2 million. On July 3, Wesco acquired fastener distributor Interfast Inc. for CDN134 million.
Carpenter Technology reported Aerospace & Defense market sales, including fastener material, rose 49% to USD293.9 million in the fourth quarter of fiscal 2012. Excluding surcharge revenue, aerospace & defense sales jumped 55% on 105% higher volume (or up 24% on 21% higher volume without Latrobe Specialty Metals).
"Demand for titanium fastener material grew again in the quarter and is now well above prior peak levels. Nickel and stainless fastener demand has led to eight straight quarters of year-over-year growth and is approaching prior peak levels."
Barnes Group reported revenue, including fasteners, decreased 2% to USD293.4 million. Organic sales rose 1% in the quarter, offset by a 3% negative impact from foreign exchange. Income from continuing operations for the second quarter grew 9% to USD24.8 million. Q2 orders increased 17% to a record backlog of USD642 million. Overall revenue during the first six months of 2012 gained 1.5% to USD596.5 million, with operating income up 4.1% to USD67.1 million.
Precision Castparts Corp. reported Fastener Products sales increased 42% to USD492.8 million in the first quarter of fiscal 2012, which included a full quarter of Primus and a partial quarter of sales from Centra. Segment operating income rose 37% to USD146.2 million, or 29.7% of sales.
Fastener Products orders for the 787 program is gradually aligning with build rates, PCC stated. "Base critical aerospace fastener sales showed more than 15% growth year over year due to base aircraft production increases, slowly improving 787 orders, and heightened distribution activity, and the segment's aerostructures businesses, including the newer acquisitions, are seeing steady top-line improvement as well," the company stated. "Operationally, the base aerospace fastener businesses are starting to drop through solid incremental margins as larger volumes are leveraged across much improved cost structures."
Vossloh reported Fastening Systems revenue dropped 17.5% to EUR114.3 million during the first six months of 2012, hampered by "project delays in China and the related sales shrinkage."
In June, shipments resumed in China, contributing a sales gain of 3% to EUR74.9 million in the second quarter. First-half order influx by the Fastening Systems segment fell 24% to EUR143.2 million, though major new contracts were booked in Germany and Thailand during Q2.
ITW reported total revenues grew 0.9% to USD4.65 billion in the second quarter of 2012, hindered by negative currency translation. FIN pointed out that ITW's operating income gained 8.3% to USD770 million. Six-month revenue grew 3.5% to USD9.2 billion, with operating income improving 7.7% to USD1.47 billion.
B/E Aerospace reported revenue at its Consumables management segment (CMS) — primarily fasteners — climbed 19.5% to USD286.6 million in the second quarter, with operating earnings rising 14.9% to USD55.5 million. The second-quarter CMS growth rate slowed a bit from the 24.3% rate of growth recorded in Q1. Six-month consumables revenue increased 21.8% to USD573.4 million, with operating earnings gaining 15.5% to USD107.3 million.
Fastenal said its end-market growth rate slowed to 15.8% in Q2, down from 20.3% in the previous quarter, which was slightly higher than the 20% rate of end-market growth the company experienced in 2011. "In the first three months of 2012, the daily sales growth in our fastener product line was approximately 15.4%. This dropped to 10.5%, 6.1%, and 8.6% in April, May, and June, respectively." Six-month sales gained 17.2% to USD1.57 billion, with pre-tax earnings up 22% to USD340.2 million and net earnings up 22.4% to USD212.5 million.
Vending machine installations are soaring in 2012, driving sales and earnings gains. The company installed 3,238 new machines in Q2, driving its six-month vending machine growth rate up 75% to 13,036. Daily sales growth to vending machine customers rose 34.3% in Q2.
In the first half of 2012 Fastenal opened 53 stores, bringing its total to 2,635. It increased its workforce 2.7% to 15,578 employees.
Other Stock Results from FIN Include:
Wesco Aircraft Holdings reported revenue grew 5.2% to USD189.3 million in its fiscal third quarter ended June 30, 2012, driven by a 34.5% increase in international sales. Fiscal Q3 net income increased 59% to USD22.3 million. Nine-month revenue gained 6.5% to USD564 million, with net income improving 13% to USD465.2 million. On July 3, Wesco acquired fastener distributor Interfast Inc. for CDN134 million.
Carpenter Technology reported Aerospace & Defense market sales, including fastener material, rose 49% to USD293.9 million in the fourth quarter of fiscal 2012. Excluding surcharge revenue, aerospace & defense sales jumped 55% on 105% higher volume (or up 24% on 21% higher volume without Latrobe Specialty Metals).
"Demand for titanium fastener material grew again in the quarter and is now well above prior peak levels. Nickel and stainless fastener demand has led to eight straight quarters of year-over-year growth and is approaching prior peak levels."
Barnes Group reported revenue, including fasteners, decreased 2% to USD293.4 million. Organic sales rose 1% in the quarter, offset by a 3% negative impact from foreign exchange. Income from continuing operations for the second quarter grew 9% to USD24.8 million. Q2 orders increased 17% to a record backlog of USD642 million. Overall revenue during the first six months of 2012 gained 1.5% to USD596.5 million, with operating income up 4.1% to USD67.1 million.
Precision Castparts Corp. reported Fastener Products sales increased 42% to USD492.8 million in the first quarter of fiscal 2012, which included a full quarter of Primus and a partial quarter of sales from Centra. Segment operating income rose 37% to USD146.2 million, or 29.7% of sales.
Fastener Products orders for the 787 program is gradually aligning with build rates, PCC stated. "Base critical aerospace fastener sales showed more than 15% growth year over year due to base aircraft production increases, slowly improving 787 orders, and heightened distribution activity, and the segment's aerostructures businesses, including the newer acquisitions, are seeing steady top-line improvement as well," the company stated. "Operationally, the base aerospace fastener businesses are starting to drop through solid incremental margins as larger volumes are leveraged across much improved cost structures."
Vossloh reported Fastening Systems revenue dropped 17.5% to EUR114.3 million during the first six months of 2012, hampered by "project delays in China and the related sales shrinkage."
In June, shipments resumed in China, contributing a sales gain of 3% to EUR74.9 million in the second quarter. First-half order influx by the Fastening Systems segment fell 24% to EUR143.2 million, though major new contracts were booked in Germany and Thailand during Q2.
ITW reported total revenues grew 0.9% to USD4.65 billion in the second quarter of 2012, hindered by negative currency translation. FIN pointed out that ITW's operating income gained 8.3% to USD770 million. Six-month revenue grew 3.5% to USD9.2 billion, with operating income improving 7.7% to USD1.47 billion.
B/E Aerospace reported revenue at its Consumables management segment (CMS) — primarily fasteners — climbed 19.5% to USD286.6 million in the second quarter, with operating earnings rising 14.9% to USD55.5 million. The second-quarter CMS growth rate slowed a bit from the 24.3% rate of growth recorded in Q1. Six-month consumables revenue increased 21.8% to USD573.4 million, with operating earnings gaining 15.5% to USD107.3 million.
