Chicago Rivet & Machine Co. reported “financial results for 2016 were very positive, with both operating segments recording increases in sales while net income improved by an impressive 39.7%.” 

Fastener segment sales grew 0.16% to $33.1 million, supported by modest growth in domestic automobile and light truck sales.

“Segment margins were further improved by favorable raw material prices during the year and a $141,000 reduction in tooling expense, contributing to a net increase in gross margin for the fastener segment of $329,235 in the fourth quarter and $1,144,067 for the full year of 2016.”

Overall net sales in 2016 increased 2.3% to $37.02 million, with net income up 40% to $2.35 million, or $2.44 per share.

“In addition to the increase in sales during 2016, our margins benefited from lower raw material prices compared to the year earlier period.”

Total capital expenditures in 2016 were $2.03 million. Fastener segment additions accounted for $1.7 million of the total, including $758,467 for the substantial completion of the H & L Tool building expansion that was begun in 2015. Cold heading and screw machine equipment additions totaled $180,818, while secondary processing equipment totaled $301,932. Inspection equipment comprised $247,330 of the fastener segment additions and the remaining additions of $195,406 were for various general plant equipment.

Sales to foreign customers represented 12% of total sales in 2016. Web: chicagorivet.com