4/3/2014 1:43:00 AM
NEWS BRIEFS
2014 FINdex Sees Lackluster Opening
The FIN Fastener Stock Index achieved a modest 1.5% gain in the opening quarter of 2014, compared to a 0.5% gain by an index of related industrial stocks.
About one in five of 21 public companies tracked by the FINdex lost share value during the quarter, which saw tough market conditions in January and February as weaker-than-expected U.S. data, concerns over growth in China and the outlook for some emerging economies troubled investors.
By contrast, the FINdex gained 9.5% in the opening quarter of 2013 on its way to a 33.3% increase for the year, including 7% growth in the final quarter.
The Institute for Supply Management-Chicago business barometer was at 55.9 in March, its lowest level since August, and down from 59.8 in February, Reuters reports.
Fastener companies gaining 10% or more in share value during the opening quarter of 2014 included Alcoa (21.1%), Anixter (13%), Chicago Rivet (17.6%), Bisco Industries (10%), Lawson Products (31%), and Tree Island Steel (38%).
Anixter achieved share growth of 13% in the quarter as speculation swirled regarding a possible sale of the company. Bloomberg reports that Anixter is working with Goldman Sachs Group Inc. to find a buyer, and is seeking offers of more than $115 per share for a market value of $3.3 billion.
Most aerospace fastener companies saw share declines in Q1, hampered by investor perceptions of excess inventory in the supply chain. Among aerospace fastener companies losing share value were B/E Aerospace (down 0.2%), Precision Castparts (down 6.1%) and TriMas (down 16.8%).
Other fastener companies losing share value in Q1 included Barnes (down 0.4%), Nucor (down 5.3%), and Simpson Mfg. (down 3.8%).
The FINdex gained 33.3% in 2013, compared to a 27.1% increase by other indices.
Only one out of the 18 public companies tracked by the FINdex saw its share value decline in 2013. Stanley Black & Decker shares fell 0.02% to $80.69, hurt by a 10.9% stock slide in the final quarter.
The biggest FINdex gain was achieved by Park-Ohio, whose shares swelled 146% to $52.40 in 2013, having achieved a quarterly growth rate of at least 30%.
Other FINdex companies gaining share value of 25% or more in 2013 included Anixter, B/E Aerospace, Barnes, Chicago Rivet, Dorman, Grainger, ITW, Precision Castparts and TriMas.
The FINdex showed strength in the opening quarter of 2013, rising 9.5% amid positive market news and major acquisitions. ©2014 GlobalFastenerNews.com
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