(RTTNews) - Industrial and construction supplies provider Fastenal Co. (FAST: News ) Monday reported a 35% year-over-year drop in profit for the third quarter, hurt by a 21.7% decline in quarterly net sales as well as lower margins.

The weakened economy continued to drive down sales by double digits, impacting particularly the company's industrial production business. Earnings per share for the quarter dropped 34.7% and came in below analysts' expectations by a penny.

Fastenal noted that it plans to resume normal annual store openings by between 7% to 10%, assuming the economy remains somewhat stable, beginning in January 2010.

Third Quarter Results

The Winona, Minnesota-based company reported net earnings of $47.59 million or $0.32 per share for the third quarter, down about 35% from $72.91 million or $0.49 per share in the prior-year quarter. The results for the year-ago quarter included a legal settlement that reduced earnings per share by just over $0.03.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the third quarter, with estimates ranging between $0.29 and $0.35 per share. Analysts' estimates typically exclude special items.
Net sales for the quarter declined 21.7% to $489.34 million from $625.04 million in the same quarter last year, and came in line with seven Wall Street analysts' consensus estimate of $489.32 million.

Among others in the industry, Melville, New York-based MSC Industrial Direct Co., Inc. (MSM: News ) is scheduled to report financial results for the fourth quarter on Wednesday, October 21, 2009. The company expects earnings to range between $0.33 and $0.37 per share for the quarter on net sales of between $336.0 million and $348.0 million, compared to last year's earnings and sales of $0.80 per share and $448.56 million, respectively. The Street is looking for earnings of $0.36 per share for the third quarter, on revenues of $343.42 million.

Another peer, Lake Forest, Illinois-based W.W. Grainer, Inc. (GWW: News ) is scheduled to report financial results for the for the third quarter on Wednesday, October 14, 2009. Analysts expect the company to report earnings of $1.34 per share for the third quarter, on revenues of $1.60 billion.

Other Metrics

The company's net sales for the month of September 2009 declined 20.8% to $167.10 million from last year's $211.06 million, and August 2009 sales fell 21.4% to $161.70 million from a year ago's $205.81 million. Sales for the month of July 2009 dropped 22.9% to $160.54 million from $208.17 million last year.

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