Chicago Rivet & Machine Co. reports fastener segment revenues rose 20.9% to $8.15 million in the first quarter of 2021. Segment sales to automotive customers grew 14.6% to $5.06 million, comparing favorably to the 11.8% increase in U.S. light-vehicle sales during the quarter. Fastener segment sales to non-automotive customers jumped 32.9% to $3.1 million. 

The Q1 sales increase boosted fastener segment gross margins 51% $1.65 million. 

“While the improvement in gross margins was significant, we have experienced price increases in various manufacturing costs, including steel, our primary raw material, which has increased approximately 11% compared to the first quarter of 2020,” the company stated. “Labor costs, which have been held down due to the pandemic, are also expected to increase in the near-term.”

Assembly equipment segment revenues increased 37.8% to $1.16 million, boosted by an increase in the number and average selling price of machines sold in the current year as well as improved tool sales. Segment gross margin improved 73% to $377,808 during Q1.

Consolidated net sales gained 22.8% to $9.3 million, resulting from “greater demand in both our fastener segment and our assembly equipment segment as the outlook for the global economy improved and the post-pandemic recovery appears to be underway.” Q1 net income improved to $540,128, while capital expenditures totaled $116,463, consisting primarily of equipment used in fastener production.

“While the pandemic is not entirely under control, the wider availability of vaccines has allowed for fewer COVID-related restrictions and an improved economic outlook,” the company stated. “While demand improved in the first quarter, some automobile manufacturers have recently reduced operations due to shortages of critical components. These disruptions could result in reduced demand for our products.” Web: ChicagoRivet.com