11/9/2015 12:12:00 AM
NEWS BRIEFS
Chicago Rivet & Machine Co. reported fastener revenue in the third quarter of 2015 declined 1.7% to $8.15 million. Segment operating profit slipped 19% to $893,862 during the quarter, as lower sales and increases in payroll and employee insurance negatively impacted margins in the quarter.
Q3 capital expenditures in the fastener segment declined 32% to $360,898.
“Fastener segment demand remained uneven during the third quarter, but improved order activity for machines resulted in strong assembly equipment sales compared to last year,” the company stated. “Conditions in the automotive market, upon which we rely for the majority of our revenues, remain favorable, even though foreign shipments, especially to China, trail last year.”
During the first nine months of 2015, fastener revenue dropped 5% to $24.83 million, with operating profit down 13% to $3.04 million. Capital expenditures on fastener operations declined 37% to $820,441, which included $387,000 for equipment.
“Sales to the China location of a certain automotive customer slowed dramatically during the third quarter and declined approximately $288,000 compared to the year earlier quarter. On a year to date basis, the decline accounted for approximately $592,000 of the net decrease in fastener segment sales in the current year.”
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