FIN Survey: 2005 Sales & Profit Remain Strong

Jason Sandefur

While 2005 was by no means a problem-free year, fastener companies reported steady sales and profit gains.
The FIN Sales Index dipped 4.5% to 4.2, but the level remained well above the pace during the late 1990s and the first four years of the new century. Over 91% of distributors saw revenue increases in 2005, while seven out of 10 manufacturers reported sales growth.
Only 17% of respondents reported that sales remained stable or declined in 2005.
The FIN Profit Index dropped slightly to 3.9. More than 71% of manufacturers reported profit gains in 2005, while nearly 85% of distributors said their bottom line had grown.
Cost increases, increasing growing steel prices, were significant enough to affect performance. A majority of the fastener industry remains optimistic about 2006, with 76.6% expecting sales increases and 58.5% anticipating profit growth.
Close to 72% of distributors expect sales to grow this year, compared with 81% of manufacturers. Likewise 54.3% of distributors foresee profit increases, compared with 64.3% of fastener makers.
\ �2006 FastenerNews.com