Fastenal 2Q16 Earnings Call Notes

Daniel Florness

We saw longer term slowdowns in construction but also temporary shutdowns affected the quarter

“In a construction front we saw slowdown in our energy customers in both May and June. And a piece of that is we’re seeing projects that were still going on from year ago that just are not being replaced. I would not look at that as a temporary one. On the temporary front we saw quite a few customers that were shutdown, I think our largest impact was actually on-site we have, where the customer was shutdown for three weeks or the month in doing maintenance, but the week of Memorial Day in early June we saw shutdowns, we saw some shutdowns here in the over the week of July 4th and I believe those are temporary will impact third quarter as well because of the July 4th and I would suspect there’ll be some over Labor Day as well.”

Steel price increases haven’t led to much pricing power

“We were seeing probably more propensity for Fastener prices to rise two and three months ago, while there still is – still our examples of that, some of the propensity had lessen, but I won’t – I’m less certain. I that’s probably more of a – we need some traction in the economy to make some of that becoming a little stickier.”

I think things potentially got a little worse but it’s tough to tell

“I think they potentially got a little bit worse. And sometimes that’s a hard one to gauge Ryan because a lot of our internal information as it relates to some of the plant shutdowns is more anecdotal of talking to our regional VPs around the country and kind of getting from them a feel for what we are seeing or what the impact is, but very much a weakening.”

Some of the shutdowns are back in full force now

“some of the shutdowns which were extended in June they are back in full force now, and so that will give us some lift from June to July and I don’t even want to speculate on July fourth week.”