Chicago Rivet & Machine Co. reported sales dropped 12.1% to $7.6 million in the first quarter of 2020 “due to reduced demand for fastener segment parts, especially from automotive customers as the impact of the coronavirus pandemic (“COVID-19”) took hold.”  Net income plummeted 80% to $56,568.

Fastener segment revenues declined 11.1% to $6.7 million.

“The automotive sector is the primary market for our fastener segment products and sales to automotive customers were $4,413,737 in the first quarter this year compared to $4,718,215 in the first quarter of 2019, a decline of $304,478, or 6.5%.”

Fastener segment sales to non-automotive customers fell 18.8% to $2.3 million.

“Fastener segment production costs in the first quarter were lower than a year earlier, with variable costs remaining consistent as a percentage of net sales with the first quarter of 2019, however, our fixed production costs were little changed which resulted in lower segment gross margins due to the lower level of sales,” the company stated.

Fastener segment gross margins were down 82% to $1.09 million.

Assembly equipment segment revenues declined 19.5% to $839,058 in Q1 “due to fewer machines being shipped compared to the comparable year earlier quarter as the combination of a slowing economy and the coronavirus pandemic resulted in reduced demand.”  Assembly equipment gross margin fell 35% to $218,476.

“Since some of our customers are classified as essential businesses and have been able to continue to operate, we have been able to continue our operations, but at a significantly reduced level, in order to service those customers during these shut-down orders.  To ensure the safety of our own employees during this unprecedented crisis, we have reduced personnel in our facilities in order to practice social distancing protocols and are following other safety practices recommended by the Centers for Disease Control.”  Web: ChicagoRivet.com