Fastenal Responds To Improvement In Economy (FAST)
Industrial spare parts company Fastenal (NASDAQ: FAST) had a tough 2009. However, the company has bounced back owing to the improvement in the economy. Will Oberton, CEO of Fastenal (FAST), said, “We tend to mirror the economy." Fastenal responded with tougher cost control measures. It slashed its workforce by 12% and slowed its expansion speed. The company opened only 69 new stores last year, in comparison to 161 store-openings in 2008.
Fastenal commands an 8% market share in the US fastener market. Fastenal is a zero-debt company and has a decent cash reserve of $195 million. The company has injected $250 million to augment its store count, over the last five year. The fastener manufacturer has also established its presence in international markets, including China and Singapore.
