Fastener Stocks Best Related Markets in 2003

Jason Sandefur

A strong fourth quarter helped the FIN Fastener Stock Index post a 29.9% gain for 2003, outperforming an index of related stocks that rose 28.6% for the year.\
Fastener stocks gaining 50% or more during 2003 were: Aviall, Alcoa, Barnes Group, Park-Ohio, R&B Inc., Penn Engineering and Precision Castparts.
Aviall had the largest percentage increase among fastener stocks in 2003, increasing 92.7% to $15.51 per share. Portland, OR-based Precision Castparts ranked a close second with an 87.3% increase in 2003, boosted by its fourth quarter acquisition of fastener manufacturer SPS Technologies Inc. for about $729 million.
Other acquisitions included Anixter International�s purchase of British fastener distributor Walters Hexagon for $41.6 million in cash, and Prophet 21�s acquisition of Faspac Systems for an undisclosed sum.
While some fastener stocks soared, a few fared poorly in 2003. Ivaco�s stock slid 82.7% to $0.43 per share, posting the biggest fastener stock loss for the year. Ivaco replaced longtime CEO Paul Ivanier with Gordon Silverman as part of a major restructuring that will include the sale of its fastener subsidiary Ifastgroupe LP. Ivaco is operating under credit protection in its host country, Canada, and in the U.S. while it restructures.
Other companies losing 10% or more included Federal Screw Works and T-3 Energy Services.
2003 included some tough news for domestic fastener makers. Textron Fastening Systems set up a fastener plant in China and announced significant plant and workforce reductions in its traditional home city of Rockford, IL. TFS will close four Rockford plants and eliminate about 1,000 jobs.
Additionally, TriMas Corp. announced an end to its Lake Erie fastener operations in Lakewood, OH. Lake Erie was founded by John Wasmer Sr. in 1946.
Promising news for the industry in 2003 included an end to the Bush tariffs on steel that most in the fastener field had lobbied hard to repeal.
The FIN Fastener Stock Index rose 20% during the final quarter of 2003, boosted by strong gains from such companies as Alcoa, Textron and Fastenal. An index of related stocks rose 12.5% during Q4.
Fastener stocks gaining 20% or more during Q4 were: Aviall, Barnes Group, Black & Decker, Danaher, Honeywell, ITW, BE Aerospace, Lawson Products, R&B Inc., Penn Engineering and Precision Castparts. �2004 FastenerNews.com