Fasten missed estimates due to sluggish demand for industrial security products.
(Reuters) – Fastener ( FAST ) posted a fourth-quarter profit below analysts’ estimates on Friday as a continued slowdown in the construction sector dampened demand for fasteners and other safety products.
The Winona, Minnesota-based company fell 5.7 percent in premarket trading.
Close: January 17th 4:00:01 PM EST
U.S. construction activity has hurt demand for industrial supplies as financing costs for major projects have increased.
“The pace of growth was exacerbated by the fact that many of our largest customers took unusually large production cuts in the last two weeks of December in connection with the holidays,” Festnal said.
Sales of fasteners, one of the wholesaler’s main divisions, fell to 29.9 percent of the company’s total sales, compared with 31.1 percent a year ago.
Fasten reported earnings of 46 cents per share in the fourth quarter, compared with an average of 48 cents expected by analysts, according to data compiled by LSEG.
Total revenue for the quarter rose 3.7 percent to $1.82 billion from a year ago, but missed estimates of $1.84 billion.
(Reporting by Anandita Mehrotra in Bengaluru; Editing by Sahal Muhammad)