(RTTNews) - Industrial and construction supplies provider Fastenal Co. (FAST: News ) Monday reported a 42.8% year-over-year drop in profit for the second quarter, hurt by a 21.4% drop in quarterly net sales as well as lower margins. The sluggish economy drove down sales by double digits, impacting particularly the company's industrial production business. Earnings per share for the quarter dropped 43.1% and missed analysts' expectations by four cents.

Second Quarter Results

The Winona, Minnesota-based company reported net earnings of $43.54 million or $0.29 per share for the second quarter, down about 43% from $76.17 million or $0.51 per share in the prior-year quarter.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the second quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter declined 21.4% to $474.89 million from $604.22 million in the same quarter last year, and missed eight Wall Street analysts' consensus estimate of $487.10 million.

Among others in the industry, Melville, New York-based MASC Industrial Direct Co. Inc. (MS) earlier in the month reported a drop in earning for the third quarter, hurt by a drop in quarterly sales amid very challenging economic climate, despite cost controls. Net income was $27.8 million or $0.44 per share, sharply down from $51.4 million or $0.81 per share in the year-ago quarter. Quarterly net sales dropped to $350.5 million from $457.2 in the same quarter a year ago.

Another peer, Lake Forest, Illinois-based W.W. Grainer, Inc. (WW) is scheduled to report financial results for the for the second quarter on Wednesday, July 15, 2009. Analysts expect the company to report earnings of $1.14 per share for the second quarter on revenues of $1.532 billion.
Other Metrics

Operating income for the second quarter dropped to $69.94 million or 14.7% of total sales, from $123.35 million or 20.4% of total sales, in the prior-year quarter. Gross profit for the quarter declined to $242.51 million from $317.39 million in the year-ago quarter, while gross profit margin was down 140 basis points at 51.1% from last year.

Operating and administrative expenses were $172.14 million, down 11.2% from $193.90 million in the same quarter last year. However, as a percentage of sales, expenses surged 410 basis points to 36.2%.

The company ended the second quarter with cash and cash equivalents of $173.67 million, compared to $76.44 million at end of the prior-year quarter.

To receive FREE breaking news email alerts for Fastenal Co. and others in your portfolio

 1   2   Next Page