Fastned BV (EU:FAST)
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   DOW JONES NEWSWIRES 
 

Fastenal Co. (FAST) reported a 11% rise in fourth-quarter net income amid higher margins and sales at the construction-equipment retailer, but a marked slowdown occurred in November and December.

The company posted net income of $62.5 million, or 42 cents a share, compared with $56.2 million, or 38 cents a share, a year ago.

Revenue grew 5% to $545 million.

Analysts polled by Thomson Reuters were looking for earnings of 41 cents on revenue of $553 million.

Gross margin edged up to 53.4% from 51%, helped by a slide in fuel prices.

But a crack in the company's strong revenue gains showed up as the year came to a close. After double-digit gains in every month of 2008, that streak for stores open at least 2 years stopped in October with an 8.1% increase. That slowed further to 2.3% in November and a 3.9% drop in December as the U.S. economy continued to worsen.

For the past two years, Fastenal has shifted focus away from store openings to expanding its sales personnel. In October, the company said it wanted to maximize the use of working capital, mainly inventory, as the average store size increases.

Fastenal shares closed Friday at $33.15 and there was no premarket trading. The stock is down 40% the past four months.

-By Katherine Wegert, Dow Jones Newswires; 201-938-5400; katherine.wegert@dowjones.com

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