FIN SURVEY
Fewer than one in five fastener companies were able to boost profit in 2009 amid widespread sales declines, the End of 2009 FIN Survey found.
Overall, three out of four fastener companies participating in the survey saw sales decline in 2009, with another 14.1% reporting steady sales. Less than one in ten – 8.3% – claimed sales grew last year.
Nearly 80% of both distributors and manufacturers said sales fell last year, while 18% of distributors reported profit gains compared with 15% of manufacturers. Only 5% of distributors participating in the survey achieved sales growth in 2009, compared with 6% of fastener manufacturers. About 67% of importers found sales declined in 2009.
In 2009 the FIN Sales Index bottomed out at 1.84 – its lowest level since FIN began tracking fastener industry sales in 1994. The 2009 FIN Sales Index was 44% lower than the 3.3 level achieved in 2008. The ’09 index also declined 29% from the previous low of 2.6 recorded in 2001.
The bottom line was thinner, too, with 63% of fastener companies reporting “Moderate” to “Strong” declines in profit. About 18% of survey respondents claimed stable profit, while nearly 17% achieved profit increases last year.
Fastener distributors were slightly more profitable than manufacturers during 2009.
At 2.14 the FIN Profit Index sunk below the previous low mark of 2.6 set in 2001. The profit index dropped 30% from the 3.1 level achieved in 2008.
The fastener industry expressed optimism in 2010, with the sales index expected to more than double to 3.8 this year and the profit index forecasted to gain more than 65% to 3.6.
More than 93% of manufacturers forecast rising orders in the next six months, including 21.9% who expect a “strong” increase in sales. About three in four distributors expect sales to grow, including 10.8% who foresee strong revenue gains. ©2010 GlobalFastenerNews.com
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