Industrial Products Maker Fastenal Posts 3Q Slide

WINONA, Minn. (AP) — Fastenal Co. said Monday its third-quarter profit fell 34 percent as a weak economy cut sales to manufacturers and builders of nonresidential properties and left the industrial products maker with a surprisingly low profit.

Net income declined to $47.6 million, or 32 cents per share, from $72.9 million, or 49 cents per share, a year earlier.

Analysts polled by Thomson Reuters expected, on average, 33 cents per share.

Sales fell to $489.3 million from $625 million, exactly what Wall Street expected. Sales to manufacturing customers contracted about 23 percent and nonresidential construction revenue declined about 25 percent.

Expenses fell to $168.1 million from $213.3 million. Fastenal's payroll by the end of the third quarter had decreased 10 percent over last year's levels through layoffs.

In response to the weak economy, Fastenal said it was "temporarily slowing store openings to a range of 2 percent to 5 percent and stopping headcount additions except for store openings and for stores that are growing."

In morning trading, shares rose 14 cents to $39.53.