Fastenal FY 1Q17 Earnings Call Notes

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Dan Florness – President and CEO

Holden Lewis

Industrial production returned to growth

“Industrial production returned to growth with an even stronger showing from key subcomponents like primary metal, fabricated metal and machinery areas that are more pertinent to our business. And this broadening of industrial demand was reflected by the fact that as Dan alluded to the significantly greater number of our stores were actually growing in the first quarter relative to the 53% to 54% pace that had been set through 2016.”

Transportation markets are the only laggard

“here remains a great deal of enthusiasm around oil and gas, and during the quarter the outlook for the general manufacturing space and the construction space also improved even as the quarter we’re on. The only laggard we could see would be manufacturing that’s going into transportation markets, things like heavy duty truck, rail et cetera. But other than that, frankly on the hold customer demand strengthened and broadened throughout the quarter and we remain encouraged about the near-term trend.”