2/22/2016 5:50:00 PM
HEADLINES
Aerospace and Auto Fastener Segment Sales Rise
Several publicly held companies with fastener operations reported rising sales in 2015.
Aerospace and automotive fasteners provided the most consistent growth, especially in emerging markets.
Those companies with sales declines found productivity and cost improvements to help offset top line shortfalls.
Alcoa Fastener Segment Sales Rise
Alcoa reported fourth quarter revenue in its Engineered Products and Solutions segment, including results from Alcoa Fastening Systems and Rings, rose 26% to a record $1.4 billion. This result included a 34% increase in aerospace sales. Segment ATOI declined slightly to $123 million in Q4.
Full-year Engineered Products and Solutions segment revenue increased 27% to $5.3 billion, with ATOI up 3% to $595 million and EBITDA rising 9% to $1.1 billion.
Consolidated revenue declined 6% to $22.5 billion in 2015, with a net loss of $121 million.
In January 2016, Alcoa announced long-term supply contracts with Boeing valued at over $2.5 billion. Alcoa will supply multi-material fasteners for every Boeing platform in its largest fastener deal ever.
Under one contract, Alcoa Fastening Systems & Rings will supply advanced titanium, stainless steel, alloy steel, aluminum and nickel-based superalloy fastening systems for every Boeing platform, including the 777X — Boeing’s newest commercial airplane — the 737 MAX — scheduled for first delivery in 2017 —and the 787 Dreamliner. Alcoa will produce these fasteners at seven of its global manufacturing facilities.
In November 2015, Alcoa spent $2.5 million to bring new machinery into its site at Telford, UK. Equipment is an optical inspection machine, a collar header and a shoulder bolt cell. Web: alcoa.com
Stanley Black & Decker Fastener Efficiency Up
Stanley Black & Decker reported revenue for its Industrial segment, including results for its Engineered Fastening business, declined 7% to $477 million in the fourth quarter of 2015. Engineered Fastening saw “strong automotive revenues more than offset by market related declines within Electronics and Industrial,” leading to a 1% organic growth decline.
Industrial segment profit margin increased to 17.9% as productivity gains and cost actions within Engineered Fastening overcame currency headwinds and lower hydraulics volume.
Full-year Industrial segment sales dropped 5.2% to $1.94 billion, with profit down 3% to $339.9 million. Web: stanleyblackanddecker.com
Fastener Sales Rebound at Fastenal
Fastenal Co. reported daily fastener sales improved from -6% in the final quarter of 2015 to -0.4% in January 2016.
For 2015, the company’s fastener product line saw sales decline 1.4%, compared to sales growth of 6.9% the previous year.
Overall Fastenal sales declined 1.6% to $308.3 million in January 2016. Daily sales improved 3.3% to $15.42 million.
Sales to manufacturing customers increased 1.9%, while sales to non-residential construction customers improved 1.2%.
In the first month of 2016, Fastenal opened 9 new stores, compared to none in the first month of the previous year.
During January the company’s overall headcount rose 11.4% to 20,745 employees, including a 17.6% jump in non-store selling personnel, a 9.4% gain in distribution personnel, and a 3.3% increase in manufacturing personnel. Web: fastenal.com
Nucor Fastener Segment Sales Decline
Nucor Corp. reported Cold Finished Steel sales, including results from Nucor Fastener, declined 9% to 95,000 tons in the fourth quarter of 2015.
For the year, Cold Finished Steel sales, dropped 11% to 449,000 tons.
Overall Nucor sales decreased 22% to $16.44 billion in 2015. Total tons shipped to outside customers dropped 11% to 22.7 million tons.
Nucor’s consolidated net sales decreased 31% to $3.46 billion in Q4. Average sales price per ton decreased 6% from the third quarter of 2015 and decreased 18% from the fourth quarter of 2014.
Total tons shipped to outside customers fell 16% to 5.1 million tons in Q4. Total Q4 steel mill shipments decreased 16%. Web: nucor-fastener.com
ITW Fastener Segments See Organic Growth
ITW reported fourth-quarter Automotive OEM organic revenue, including fasteners, grew 5%, including 10% growth in Europe, 4% growth in North America and 14% growth in China.
Total Q4 segment revenue reached $615 million, with a profit of $135 million and operating margin of 22%.
Full-year Automotive OEM segment revenue totaled $2.53 billion, with operating income of $613 million and operating margin of 24.2%.
Q4 organic revenue for Construction Products, including fasteners, increased 3%, driven by 7% growth in Asia Pacific and 2% growth in North America. Segment revenue for Q4 totaled $378 million, with operating income of $75 million and operating margin of 19.9% — up 420 basis points.
Full-year Construction Products revenue reached $1.59 billion, with operating income of $316 million and operating margin of 19.9%.
The news comes days after ITW announced a deal to acquire the automotive Engineered Fasteners and Components business of ZF TRW for $450 million.
Enkenback, Germany-based ZF TRW Engineered Fasteners and Components operates 13 locations with a global manufacturing and engineering footprint that serves customers in Europe, Asia, and North America. The business has 3,500 employees in nine countries.
ITW reportedly intends to run the Engineered Fasteners and Components business as a standalone division within ITW’s automotive OEM segment. Web: itw.com
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