11/9/2011 12:06:00 AM
NEWS BRIEFS
Chicago Rivet Fastener Segment Records 7th Consecutive Quarterly Gain
Chicago Rivet reported net sales for the third quarter of 2011 increased 12.5% to $7.82 million.
During the third quarter, fastener segment revenues improved to $6,913,898 from $6,073,599 in the year earlier period, an increase of $840,299, or 13.8%. This marks the seventh consecutive quarter of increased sales for the fastener segment compared with the year earlier quarter.
Overall nine-month sales grew 9.8% to $23.8 million. The increase in revenue helped to improve net income for the third quarter to $317,640, or $0.33 per share, compared with $105,993, or $0.11 per share, in the third quarter of 2010. Net income for the current year to date, which has benefited from the revenue growth achieved during the first three quarters as well as the sale of certain property in the second quarter, was $1,022,183, or $1.06 per share, compared with $559,922, or $0.58 per share, reported in 2010.
Year to date results include the second quarter gain of $142,000 from the sale of our Jefferson, Iowa property, which had formerly been used in our fastener segment operations, as well as a net gain of $48,000 from the disposal of certain property and equipment.
For the first three quarters of the year, fastener segment revenues have increased $2,250,217, or 11.8%, from $19,080,342 in 2010 to $21,330,559 in the current year. “While the majority of this segment’s revenues are derived from the automotive industry, current year sales for this segment have exceeded the increase seen in domestic automotive production,” the company stated.
“Higher sales and cost control efforts have resulted in improved fastener segment margins for the quarter and year to date periods. However, raw material prices continue to exceed those of last year.”
In the third quarter, the average price of steel, the company’s primary raw material, was 9.8% higher than during the same period last year, and for the first three quarters of 2011 steel prices are 9.1% higher than a year earlier.
“We have experienced even greater percentage increases in non-ferrous materials in 2011, before experiencing some relief in recent weeks. The combination of greater sales and our ongoing emphasis on efficiency and cost controls offset the higher raw material prices resulting in third quarter gross margins of $1,405,000 compared to $973,000 in 2010. The same factors contributed to a $742,000 improvement in gross margins for the first nine months of the year to $4,292,000 from $3,550,000 in 2010.”
Revenues within the assembly equipment segment were $907,708 in the third quarter of 2011, an increase of $31,033, or 3.5%, compared with the third quarter of 2010, when revenues were $876,675. While the average unit value of machines shipped during the quarter declined compared to the prior year quarter, an increase in the number of units shipped contributed to the increase in revenues. The increase in revenue, combined with maintaining manufacturing costs at levels near or below the prior year, resulted in gross margins of $341,000 for the quarter, an increase of $36,000 over last year’s third quarter. Current year to date revenues of $2,439,519 represent a decline of $130,339, or 5.1%, compared to the $2,569,858 reported in 2010. The improvement in third quarter results helped increase year to date gross margins for the assembly equipment segment to $827,000, compared to $904,000 in the prior year.
Working capital at September 30, 2011 was $15.2 million, an increase of approximately $.6 million from the beginning of the year. Most of the net improvement relates to an increase in accounts receivable balances of $1.3 million, related to greater sales during the quarter compared to the seasonally lower sales late in the fourth quarter of 2010. Inventories have increased by $.5 million, or 12%, since the beginning of the year, due to higher material prices and quantities on hand being increased for the greater level of activity.
“We are encouraged by the improvement in sales and net income reported in the first three quarters of this year and our ability to maintain a strong financial position while making long-term investments in our operations,” the company stated.
“Although economic conditions remain relatively weak due to high unemployment and weak confidence, we will continue to pursue opportunities to profitably grow our revenues and improve our bottom line.”
“Higher raw material prices remain a significant concern as many of the parts we sell are under contracts that limit our ability to pass on such increases. Despite the difficult challenges we face, we will continue to make prudent investments in our operations in order to position the company for further success.” ©2011 GlobalFastenerNews.com Chicago Rivet reported net sales for the third quarter of 2011 increased 12.5% to $7.82 million.
During the third quarter, fastener segment revenues improved to $6,913,898 from $6,073,599 in the year earlier period, an increase of $840,299, or 13.8%. This marks the seventh consecutive quarter of increased sales for the fastener segment compared with the year earlier quarter.
Overall nine-month sales grew 9.8% to $23.8 million. The increase in revenue helped to improve net income for the third quarter to $317,640, or $0.33 per share, compared with $105,993, or $0.11 per share, in the third quarter of 2010. Net income for the current year to date, which has benefited from the revenue growth achieved during the first three quarters as well as the sale of certain property in the second quarter, was $1,022,183, or $1.06 per share, compared with $559,922, or $0.58 per share, reported in 2010.
Year to date results include the second quarter gain of $142,000 from the sale of our Jefferson, Iowa property, which had formerly been used in our fastener segment operations, as well as a net gain of $48,000 from the disposal of certain property and equipment.
For the first three quarters of the year, fastener segment revenues have increased $2,250,217, or 11.8%, from $19,080,342 in 2010 to $21,330,559 in the current year. “While the majority of this segment’s revenues are derived from the automotive industry, current year sales for this segment have exceeded the increase seen in domestic automotive production,” the company stated.
“Higher sales and cost control efforts have resulted in improved fastener segment margins for the quarter and year to date periods. However, raw material prices continue to exceed those of last year.”
In the third quarter, the average price of steel, the company’s primary raw material, was 9.8% higher than during the same period last year, and for the first three quarters of 2011 steel prices are 9.1% higher than a year earlier.
“We have experienced even greater percentage increases in non-ferrous materials in 2011, before experiencing some relief in recent weeks. The combination of greater sales and our ongoing emphasis on efficiency and cost controls offset the higher raw material prices resulting in third quarter gross margins of $1,405,000 compared to $973,000 in 2010. The same factors contributed to a $742,000 improvement in gross margins for the first nine months of the year to $4,292,000 from $3,550,000 in 2010.”
Revenues within the assembly equipment segment were $907,708 in the third quarter of 2011, an increase of $31,033, or 3.5%, compared with the third quarter of 2010, when revenues were $876,675. While the average unit value of machines shipped during the quarter declined compared to the prior year quarter, an increase in the number of units shipped contributed to the increase in revenues. The increase in revenue, combined with maintaining manufacturing costs at levels near or below the prior year, resulted in gross margins of $341,000 for the quarter, an increase of $36,000 over last year’s third quarter. Current year to date revenues of $2,439,519 represent a decline of $130,339, or 5.1%, compared to the $2,569,858 reported in 2010. The improvement in third quarter results helped increase year to date gross margins for the assembly equipment segment to $827,000, compared to $904,000 in the prior year.
Working capital at September 30, 2011 was $15.2 million, an increase of approximately $.6 million from the beginning of the year. Most of the net improvement relates to an increase in accounts receivable balances of $1.3 million, related to greater sales during the quarter compared to the seasonally lower sales late in the fourth quarter of 2010. Inventories have increased by $.5 million, or 12%, since the beginning of the year, due to higher material prices and quantities on hand being increased for the greater level of activity.
“We are encouraged by the improvement in sales and net income reported in the first three quarters of this year and our ability to maintain a strong financial position while making long-term investments in our operations,” the company stated.
“Although economic conditions remain relatively weak due to high unemployment and weak confidence, we will continue to pursue opportunities to profitably grow our revenues and improve our bottom line.”
“Higher raw material prices remain a significant concern as many of the parts we sell are under contracts that limit our ability to pass on such increases. Despite the difficult challenges we face, we will continue to make prudent investments in our operations in order to position the company for further success.” ©2011 GlobalFastenerNews.com
Chicago Rivet reported net sales for the third quarter of 2011 increased 12.5% to $7.82 million.
During the third quarter, fastener segment revenues improved to $6,913,898 from $6,073,599 in the year earlier period, an increase of $840,299, or 13.8%. This marks the seventh consecutive quarter of increased sales for the fastener segment compared with the year earlier quarter.
Overall nine-month sales grew 9.8% to $23.8 million. The increase in revenue helped to improve net income for the third quarter to $317,640, or $0.33 per share, compared with $105,993, or $0.11 per share, in the third quarter of 2010.
Net income for the current year to date, which has benefited from the revenue growth achieved during the first three quarters as well as the sale of certain property in the second quarter, was $1,022,183, or $1.06 per share, compared with $559,922, or $0.58 per share, reported in 2010.
Year to date results include the second quarter gain of $142,000 from the sale of our Jefferson, Iowa property, which had formerly been used in fastener segment operations, as well as a net gain of $48,000 from the disposal of certain property and equipment.
For the first three quarters of the year, fastener segment revenues have increased $2,250,217, or 11.8%, from $19,080,342 in 2010 to $21,330,559 in the current year.
“While the majority of this segment’s revenues are derived from the automotive industry, current year sales for this segment have exceeded the increase seen in domestic automotive production,” the company stated.
“Higher sales and cost control efforts have resulted in improved fastener segment margins for the quarter and year to date periods. However, raw material prices continue to exceed those of last year.”
In the third quarter, the average price of steel, the company’s primary raw material, was 9.8% higher than during the same period last year, and for the first three quarters of 2011 steel prices are 9.1% higher than a year earlier.
“We have experienced even greater percentage increases in non-ferrous materials in 2011, before experiencing some relief in recent weeks. The combination of greater sales and our ongoing emphasis on efficiency and cost controls offset the higher raw material prices resulting in third quarter gross margins of $1,405,000 compared to $973,000 in 2010. The same factors contributed to a $742,000 improvement in gross margins for the first nine months of the year to $4,292,000 from $3,550,000 in 2010.”
Revenues within the assembly equipment segment were $907,708 in the third quarter of 2011, an increase of $31,033, or 3.5%, compared with the third quarter of 2010, when revenues were $876,675. The increase in revenue, combined with maintaining manufacturing costs at levels near or below the prior year, resulted in gross margins of $341,000 for the quarter, an increase of $36,000 over last year’s third quarter.
Current year to date revenues of $2,439,519 represent a decline of $130,339, or 5.1%, compared to the $2,569,858 reported in 2010. The improvement in third quarter results helped increase year to date gross margins for the assembly equipment segment to $827,000, compared to $904,000 in the prior year.
Working capital at September 30, 2011 was $15.2 million, an increase of approximately $.6 million from the beginning of the year. Most of the net improvement relates to an increase in accounts receivable balances of $1.3 million, related to greater sales during the quarter compared to the seasonally lower sales late in the fourth quarter of 2010.
Inventories have increased by $.5 million, or 12%, since the beginning of the year, due to higher material prices and quantities on hand being increased for the greater level of activity.
“We are encouraged by the improvement in sales and net income reported in the first three quarters of this year and our ability to maintain a strong financial position while making long-term investments in our operations,” the company stated.
“Although economic conditions remain relatively weak due to high unemployment and weak confidence, we will continue to pursue opportunities to profitably grow our revenues and improve our bottom line.”
“Higher raw material prices remain a significant concern as many of the parts we sell are under contracts that limit our ability to pass on such increases. Despite the difficult challenges we face, we will continue to make prudent investments in our operations in order to position the company for further success.” ©2011 GlobalFastenerNews.com
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