FIN Fastener Stock Index Nears 20% Growth in 2006

John Wolz

The FIN Fastener Stock Index performed nearly twice as well as other industrial stocks in 2006, gaining 19.7% compared with a 10.9% increase by an index of related stocks.\
Precision Castparts led the way with a 32% jump in share value to $78.28, posting consecutive stock gains throughout the year. The Portland, OR-based manufacturer became a major player in the fastener industry when it acquired SPS Technologies in 2003 for $893 million, followed by the 2005 acquisitions of Air Industries Corp. and Shur-Lok. PCC”s fastener sales topped $800 million in fiscal 2006.
Other fastener companies posting double-digit stock gains in 2006 included Anixter and Lawson.
Fastenal saw the largest percentage loss of stock value on the FINdex, with its stock dropping 24% to $35.88 in 2006 despite a 21% jump in stock value during the first quarter.
Other fastener companies with stock losses of at least 10% included Park-Ohio and Paulin.
Barnes, ITW, and Nucor all offered 2-for-1 stock splits during the year.
Companies divesting their fastener holdings or being taken private during 2006 included Aviall, GE and Textron.
GE dropped off the FINdex in the fourth quarter after selling its electrical distribution business, GE Supply, for $725 million to France-based Rexel Group. The deal included Irving, TX-based GE Supply Logistics, which GE established after acquiring fastener distributor Questron Technologies Inc. in 2002 for $88.7 million.
Q4 FINdex Outpaced By Competition
The FINdex gained 5.8% during the fourth quarter of 2006, reversing a decline that lasted for two quarters. However the FINdex increase was just over half of the 10.9% growth seen in an index of related industrial stocks during Q4.
Precision Castparts saw the largest percentage gain during the quarter, jumping 24% to $78.28. Barnes registered a 23.9% increase to $21.75 per share.
Other industrial companies with fastener operations reporting double-digit stock growth included Honeywell, Nucor, B/E Aerospace and Park-Ohio.
Chicago Rivet recorded the largest percentage loss of stock value among publicly-traded fastener companies, with its share price dropping 11.3% to $21.01 in Q4. Other fastener companies with stock declines included Fastenal, Anixter, whose shares dipped 3.8% after strong third quarter gains of 19%, and Paulin. �2007 FastenerNews.com