Fastenal misses on Q3 expectations, shares decline

Industrial supplies manufacturer Fastenal published weaker-than-expected results on Tuesday for its third quarter of 2016, with profits lower as a result of weakness in its core segment.

The Minnesota-based company has been affected by the slowdown in the construction industry, and shares were declining ahead of the open.

A rise in revenues to $1.01bn was predicted by analysts and this expectation was met, but Fastenal reported earnings of 44 cents per share for $126.9m, which was below the 47 cents per share for $136.5m a year earlier.

"Business conditions in the third quarter of 2016 looked very similar to those in the first half of 2016," Fastenal said in a statement.

"Daily sales growth remained slow at 1.8% in the third quarter of 2016, versus growth of 1.9% and 1.6%, respectively, in the first and second quarters of 2016."