Continued weakness in the heavy equipment and construction markets contributed to slowing growth at industrial supplier Fastenal Co.
"This is not a great environment to do business in, but that's the world we live in," said president and CEO Dan Florness on the company's conference call with analysts. "But we will continue to focus on our growth drivers."
Fastenal Co., a distributor of fasteners and other industrial and construction supplies, reported third-quarter results Tuesday that slightly missed analysts' expectations. The Winona-based company reported earnings per share of 44 cents on revenue of $1.013 billion for the quarter ended Sept. 30. Analysts had expected earnings per share of 45 cents on sales of $1.014 billion.
Third-quarter earnings for Fastenal declined by 3 cents, or 6.4 percent, while sales increased 1.8 percent compared with last year's third quarter.
The company's results were generally impacted by a slow to no-growth industrial and manufacturing economy, which impacted its core fastener business.
Logan Purk, an analyst who covers Fastenal for Edward Jones, said it has been more of the same from Fastenal for the last three quarters.
"The business continues to show anemic growth, largely due to weakness in the industrial economy," Purk said.
Purk moved his recommendation from "buy" to "hold" after Fastenal reported second-quarter results in July. He maintained his "hold" rating Tuesday after noting that management wasn't particularly upbeat about calling a bottom to the industrial economy.