Chicago Rivet & Machine Co. reported fastener segment revenues declined 8.6% to $8.1 million in the second quarter of 2017. Fastener segment gross margin fell 32% to $1.55 million, which included tooling costs of $122,000 for the quarter.

“The automotive sector is the primary market for our fastener segment products and domestic automotive sales have declined in the current year, which has negatively impacted demand for our products,” the company stated.

For the first six months of 2017, fastener segment revenues were down 2.7% to $16.8 million, hurt by reduced shipments to certain large automotive customers. Fastener segment gross margin decreased 16.6% to $3.6 million, which included tooling costs of $174,000 for the six-month period.

Overall Chicago Rivet revenues slipped 3.9% to $9.4 million in Q2, with net income falling 42% to $462,355.

First-half revenues were down 2.6% to $18.9 million, while net income slipped 11.7% to $973,277.

Chicago Rivet tempered its forecast for the second half of 2017, pointing to declining automotive sales despite increased car manufacturer incentives.

“Based on the current economic environment, we don’t believe overall business conditions during the second half of the year will be markedly different from those of the first half.

“While our strong financial condition should enable us to pursue opportunities to profitably grow revenues and improve net income, our results will continue to be impacted by the overall level of activity in the automotive market, and as such, we plan to emphasize our efforts to control costs and improve operating efficiencies.” Web: chicagorivet.com