Here are a few key points from Fastenal's Q2 2012 conference call:
1. Fastenal is definitely seeing a slowdown in manufacturing and construction activity. In the CEO's words, the economy is taking a "step-down" throughout the country and internationally. Backlogs are flattening, and as a result, production is slowing. However, people are not panicking.
2. Fastenal is having a lot of success with its vending solutions and is selling more vending than expected. The growth in sales of its fasteners, however, declined sharply from the first quarter.
3. The company is reducing its SG&A expenses to record low levels and believes it can sustain the lowered expenses in the future.
4. Margins have improved to 22.2 percent, which is one of the best, if not the best, quarter on margins.
5. Fastenal's transportation segment is experimenting with using compressed natural gas in its semis, which would save $1500 to $2000 per month on expenses (after paying higher prices for the trucks and engines).
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