EXHIBIT 99.1
Fastenal Company Reports 2020 Third Quarter Earnings
WINONA, Minn., October 13, 2020 (BUSINESS WIRE) -- Fastenal Company (Nasdaq:FAST), a leader in the wholesale distribution of industrial and construction supplies, today announced its financial results for the quarter ended September 30, 2020. Except for share and per share information, or as otherwise noted below, dollar amounts are stated in millions. Share and per share information in this release, and in the financial statements attached to this release, has been adjusted to reflect the two-for-one stock split effective at the close of business on May 22, 2019. Throughout this document, percentage and dollar calculations, which are based on non-rounded dollar values, may not be able to be recalculated using the dollar values included in this document due to the rounding of those dollar values.
PERFORMANCE SUMMARY
 Nine-month PeriodThree-month Period
 20202019Change20202019Change
Net sales$4,289.3 4,056.8 5.7 %$1,413.3 1,379.1 2.5 %
Business days192 191 64 64 
Daily sales$22.3 21.2 5.2 %$22.1 21.5 2.5 %
Gross profit$1,949.0 1,917.0 1.7 %$640.6 651.1 -1.6 %
 % of sales45.4 %47.3 %45.3 %47.2 %
Operating income$877.4 818.3 7.2 %$290.1 281.9 2.9 %
 % of sales20.5 %20.2 %20.5 %20.4 %
Earnings before income taxes$870.5 807.3 7.8 %$287.6 278.4 3.3 %
 % of sales20.3 %19.9 % 20.4 %20.2 % 
Net earnings$663.0 612.2 8.3 %$221.5 213.5 3.7 %
Diluted net earnings per share$1.15 1.07 8.0 %$0.38 0.37 3.4 %
Quarterly Results of Operations
Net sales increased $34.2, or 2.5%, in the third quarter of 2020 when compared to the third quarter of 2019. This increase was driven primarily by higher unit sales of safety products, where volume moderated relative to the pandemic-driven level of "surge" sales in the second quarter of 2020, but remained elevated relative to the third quarter of 2019. Re-opening of the economy has been accompanied by greater demand for personal protection equipment ('PPE'), hand sanitizer, and related products, which more than offset continued softness in underlying business activity owing to a generally weak industrial marketplace for products unrelated to mitigating the effects of COVID-19. The impact of product pricing on net sales was immaterial, as price levels were broadly comparable to those of the third quarter of 2019.
The tone of the third quarter of 2020 can best be described as one of normalization following the heavily pandemic-influenced second quarter of 2020. Activity levels throughout the period remained below those that existed prior to the onset of the pandemic and the related mitigation efforts. Based on trends in vending dispenses and hub picks during the period, however, we believe there was gradual sequential improvement in general business activity each month of the quarter. This was apparent not only in our sales trend, but also in improving signings and activity levels among our growth drivers. Our product trends are instructive. For instance, daily sales of fastener products declined 6.9% over the third quarter of 2019, and represented 30.5% of our net sales in the third quarter of 2020; fasteners represented 26.0% and 33.7% of net sales in the second quarter of 2020 and the third quarter of 2019, respectively. The daily sales decline of fasteners reflects the continued softness of the manufacturing and construction markets, but is improved on the 16.4% daily sales decline of fasteners experienced in the second quarter of 2020 compared to the second quarter of 2019. Daily sales of our safety products grew 34.4% over the third quarter of 2019, and represented 23.8% of our net sales in the third quarter of 2020; safety products represented 34.0% and 18.2% of net sales in the second quarter of 2020 and the third quarter of 2019, respectively. The daily sales growth of safety products decelerated from the 116.3% increase in the second quarter of 2020 as a result of a reduction in "surge"-type purchasing. However, we continue to see strong growth with state and local government and healthcare customers in addition to experiencing elevated day-to-day consumption of safety products from our manufacturing and construction customers as they operate with enhanced safety protocols for employees. Daily sales of our other products declined 2.3% over the third quarter of 2019, and represented 45.7% of our net sales in the third quarter of 2020; other products represented 40.0% and 48.1% of net sales in the second quarter of 2020 and the third quarter of 2019, respectively.
Our gross profit, as a percentage of net sales, declined 190 basis points to 45.3% in the third quarter of 2020 from 47.2% in the third quarter of 2019. The most significant factor behind the decline in our overall gross profit percentage in the period was the impact of lower product margins specifically for a narrow subset of COVID-specific safety products, such as masks and face
1

The following information was filed by Fastenal Co (FAST) on Tuesday, October 13, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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