Chicago Rivet & Machine Co. reported fastener sales increased 2.2% to $8.9 million in the first quarter of 2018.

“U.S. light-vehicle sales rose approximately 2% during the first quarter of 2018 after experiencing the first full year decline in seven years in 2017,” the company stated. “The improvement in automotive sales and the addition of a number of non-automotive customers in the second half of 2017 contributed to the revenue increase in the first quarter.”

Q1 fastener segment gross margins declined 2.8% to $1.98 million, driven by Q1 production costs increases as “higher material costs exceeded savings related to tooling expense of $123,000.”

Capital expenditures for the fastener segment increased 5.4% to $184,227.

Assembly equipment segment revenues jumped 45.4% to $1.1 million in Q1 due to the shipment of a “high-dollar machine order.” The higher revenue contributed to a $142,668 increase in segment gross margin to $366,365. Material costs increased during Q1 but were offset by an overall reduction in overhead expenses.

Consolidated Q1 revenues at Chicago Rivet rose 5.6% to $10.01 million, while net income increased 38.6% to $707,788. Web: ChicagoRivet.com