Wed, Jul 17, 1:46 PM (52 days ago)
Fastenal Company’s Q2 2024 financial results reveal stable but modest growth. Net sales increased by 1.8% year-over-year to $1,916.2 million, driven by higher unit sales from larger customers and Onsite locations. However, gross profit margins slightly declined from 45.5% to 45.1%, impacted by an unfavorable customer and product mix, and short-term supply chain inefficiencies. SG&A expenses rose by 3.0%, leading to a decrease in operating income margin from 21.0% to 20.2%. Net income fell by 1.8% to $292.7 million, with diluted EPS at $0.51. Cash flow from operations decreased by 14.6% due to changes in working capital, particularly inventory adjustments. The company maintained a stable debt level and increased dividends. Growth initiatives, including Onsite locations and digital capabilities, continue to be a focus. Fastenal expects capital expenditures to rise, reflecting investments in distribution centers and technology. The company remains cautious about future uncertainties, including economic conditions and market risks.