Summary
This 10-K filing for Fastenal Company for the fiscal year ended December 31, 2002, highlights the company's continued expansion and its core business of distributing industrial and construction supplies. Fastenal operated 1,169 store sites across 50 states, Puerto Rico, Canada, Mexico, and Singapore, with a strategy focused on convenient locations and a wide product range. The company's growth is primarily driven by opening new stores, with an expectation of 14-16% annual growth, though it notes that new stores typically take 9-12 months to become profitable. Financially, the report details strong net sales growth over the past decade, reaching $905.4 million in 2002. The company's product mix is dominated by threaded fasteners, accounting for approximately 46% of sales in 2002, with a diversified strategy of adding new product lines over the years to supplement its core offerings. Fastenal emphasizes its decentralized decision-making and a strong employee base as key competitive advantages in a highly competitive market.
Key Highlights
- 1Fastenal operated 1,169 store sites across 50 states, Puerto Rico, Canada, Mexico, and Singapore as of December 31, 2002.
- 2Net sales grew to $905.4 million in 2002, reflecting a consistent upward trend over the past decade.
- 3The company plans to continue its aggressive store expansion, targeting 14-16% new store openings annually.
- 4Threaded fasteners represented approximately 46% of the company's consolidated net sales in 2002, with diversified product lines contributing significantly.
- 5Fastenal acquired and subsequently divested a 'Do-It-Yourself' (DIY) business, impacting net sales in 2001 and 2002.
- 6The company utilizes a decentralized operational model and emphasizes employee quality as a key competitive strength.
- 7No single supplier accounted for more than 5.0% of Fastenal's purchases in 2002, indicating a diversified supply chain.