Chicago Rivet & Machine Co. reported fastener segment revenues edged up 0.1% to $8.15 million in the opening quarter of 2022. 

Fastener sales to automotive customers fell 3.1% to $4.9 million, which compares favorably to the 15.7% decline in North American light vehicle sales in Q1 due to component shortages. Fastener sales to non-automotive customers rose 5.2% to $3.25 million. 

Fastener segment gross margins declined 5.9% to $1.56 million during the quarter. 

“We have experienced price increases in various manufacturing costs, including steel, our primary raw material, which has increased approximately 37% compared to the first quarter of 2021,” the company stated.

Q1 assembly equipment segment revenues dropped 9.7% to $1.04 million, hurt by a lower average selling price on machines sold in the current year. Lower sales contributed to a $80,495 decline in segment gross margin to $297,313 in 2022.

Consolidated Chicago Rivet sales fell 1.2% to $9.2 million in Q1 “due to a lower average selling price on machines sold in the current year.” Lower sales combined with higher operating costs lowered net income 17% to $447,313, or $0.46 per share.

“Results in the first quarter reflected steady demand overall, but demand from automotive customers, our primary customer market, was constrained by continued pandemic-fueled chip and parts shortages,” the company summarized. “Higher operating costs related to accelerating inflation and a tight labor market further weighed on results during the quarter.” Web: ChicagoRivet.com