1/7/2013 2:22:00 AM
HEADLINES
Fastener Stocks Outperform Other Industrials in 2012
The FINdex gained 7.1% in Q3, compared with 4.9% gain by industrial stock composites. Only three fastener companies lost share value in the third quarter.
The FINdex was hit especially hard in the second quarter, when all public companies with fastener holdings recorded losses. The FINdex declined 14.6% from the beginning of April to the end of June, bested by an index of related industrial stocks, which dipped a comparatively modest 3.4% during the period.
During the opening quarter of 2012 the FINdex rose 12.3%, besting a 9.4% gain by an index of related industrial stocks. But finding a middle ground proved difficult, as most public fastener companies achieved double-digit gains or suffered a loss during the period.
The FIN Fastener Stock Index finished strong in the fourth quarter of 2012, solidifying a third-quarter rebound with a 7.3% increase in the final quarter and besting an index of related industrial stocks, which fell slightly.
For the year, the FINdex finished 10.5% higher than 2011 — edging out the 10.4% gain recorded by an index of related industrial stocks.
Nine of the companies tracked by the FINdex achieved double-digit stock gains in Q4, while six lost share value during the period.
The clear winner for 2012 was H. Paulin & Co., whose stock nearly tripled in value during the year, including a 129.5% jump in stock price during the final quarter.
Through the first nine months of 2012, Paulin stock gained 26.2% in value. But share value ballooned in Q4 on news that the Hillman Companies Inc. agreed to acquire Paulin. The transaction is expected to close in the first quarter of 2013.
Other public fastener companies achieving strong share gains in 2012 included B/E Aerospace (27.6%); Chicago Rivet (13.7%); ITW (30.2%); Park-Ohio (19.4%); Precision Castparts (15%); and TriMas (56%).
Fastener companies whose share value declined in 2012 included Barnes, Carpenter Technologies, Dorman Products, Kaydon Corp., Lawson Products and Simpson Mfg.
Lawson saw its stock value drop 35% overall in 2012, despite a 43% share gain in the fourth quarter. ©2013 GlobalFastenerNews.com
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