5/11/2016
NEWS BRIEFS
Chicago Rivet Reports ‘Stable’ Fastener Demand
Chicago Rivet & Machine Co. reported fastener segment revenue gained 0.6% to $8.45 million in the opening quarter of 2016.
“The increase in sales reflects the modest growth in North American vehicle sales during the first quarter of 2016 and reduced demand for certain non-automotive parts,” the company stated.
“Demand for our fastener segment products remains stable and is supported by a healthy domestic automotive market. Although the fastener segment benefited from lower material prices during the first quarter of 2016, we have experienced some increases early in the second quarter that are difficult to mitigate.”
Q1 fastener segment overhead was consistent with the year earlier quarter. “However, favorable raw material prices resulted in improved gross margins in the current year. The net impact of these factors was to increase fastener segment gross margin by $244,506.”
Fastener segment operating profit rose 20.5% to $1.23 million, while capital expenditures increased 16.8% to $409,785.
Overall Chicago Rivet sales increased 3.4% to $9.6 million, “primarily attributable to strong machine sales and improved demand from automotive customers in China.”
Capital expenditures rose 45% to $599,381, while net income improved 40% to $647,057.
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