Federal Screw To De-List NASDAQ Stock

Jason Sandefur

Citing a need to focus on increased shareholder value, Federal Screw Works announced it would terminate registration of its common stock on the NASDAQ Stock Market. Likewise, the company is delisting its stock starting March 2, 2005. The St. Clair Shores, MI-based fastener manufacturer is eligible to deregister stock because the company has fewer than 300 shareholders. As of September 2004, the company had 296 shareholders of record, according to Securities and Exchange Commission filings.
Federal Screw’s board unanimously approved the move reportedly to help save costs and management time related to compliance with SEC regulations and other federal guidelines. “The board concluded & that the burdens associated with operating as a registered public company currently outweigh any advantages to the company and its shareholders,” Federal Screw stated in a press release.
The company’s stock was trading at $31.5 when the announcement was made. In the past year, Federal Screw stock has lost about 16% in value. Federal Screw will continue to trade its shares in the over-the-counter market known as the “Pink Sheets.” The company will also continue its annual shareholders meeting, along with quarterly reports and audited financial statements.
A decline in auto sales and a rise in steel prices have hurt results at Federal Screw. The company reported six-month sales for the first half of fiscal 2005 declined 4.2% to $40.4 million. The company declared a loss of $2.4 million during the period as compared with a $115,000 profit during the first half of fiscal 2004.
Over the past five years, sales have declined 25%, and the company has cut its workforce by nearly 20%. The ZurSchmiede family, including CEO Thomas Zurschmiede, owns about 30% of company stock. Web: federalscrew.com �2005 FastenerNews.com