5/12/2009
NEWS BRIEFS
Chicago Rivet Q1 Fastener Revenue Drops
With North American automotive production at an 18-year low, Chicago Rivet & Machine Co. saw fastener revenue drop 51% to $3.69 million during the first quarter of 2009.
“In response to the reduced demand, we have taken steps to reduce expenses where practicable, including reductions in staffing and work schedules,” the company stated in its SEC filing.
Chicago Rivet saved $87,000 during Q1 by eliminating contract labor and $531,000 through “an aggressive competitive bid process” for supplies.
“Even though we reduced all major categories of manufacturing costs, these savings did not fully offset the decline in sales volume, resulting in a $982,000 reduction in fastener segment gross margin.”
The company reported a fastener segment loss of $617,979 for the quarter, compared with a segment profit of $326,878 during the opening quarter of 2008. Capital expenditures for fasteners dropped 46% to $70,092.
Overall Chicago Rivet revenue fell 43% to $4.75 million during Q1. The company reported a net loss of $623,861 for the period.
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