Jason Sandefur

Federal Screw Works trimmed its losses with net sales for the third quarter of fiscal 2006 dropped 7% to $22.08 million. The St. Clair Shores, MI-based fastener maker recorded a Q3 loss of $571,000 compared with a $2.5 million loss during the third quarter of fiscal 2005.
Net sales for the first nine months of fiscal 2006 declined 3.8% to $61.73 million, while the company more than halved its losses to $1.93 million compared with a $4.9 million loss during the first nine months of fiscal 2005.
Federal Screw de-listed its stock on the NASDAQ Stock Market in March 2005, citing regulation costs and shrinking margins. Company revenue has declined each year since 2001, and its shares are now traded in the over-the-counter market known as the “Pink Sheets.”
A week after de-listing, Federal Screw announced the closure of its fastener manufacturing facility in Chelsea, MI. Shuttering the facility will eliminate 37 jobs and cost the company an estimated restructuring charge of $2.8 million.
Founded in 1919, the fastener manufacturer produces special fasteners, cold formed and machined parts. The company has six plants in Michigan manufacturing products for use in fluid-power transmission, structural assembly, internal combustion and safety applications. Products include locknuts, bolts, piston pins, bushings and other machined, cold formed or ground metal parts.
About 90% of sales are to the automotive industry, with Ford Motor Co. and General Motors ranked as their largest customers. Much of the Federal Screw production is to OEM specifications.
The ZurSchmiede family owns about 30% of Federal Screw stock.
Headquarters: 20229 Nine Mile Rd., St. Clair Shores, MI 48080-1775. Tel: 586 443-4200 Fax 586 443-4220
Web: federalscrew.com
NASDAQ Symbol: FSCR
CEO: Thomas ZurSchmiede, 54
Key fastener executive: John O”Brien, vice president of sales & marketing
Founded: 1919
Employees: 376
Percentage of revenue from fastener-related products: About 90% \ �2006 FastenerNews.com