2020
Chicago Rivet & Machine Co. reported sales dropped 12.1% to $7.6 million in the first quarter of 2020 “due to reduced demand for fastener segment parts, especially from automotive customers as the impact of the coronavirus pandemic (“COVID-19”) took hold.”  Net income plummeted 80% to $56,568.

Fastener segment revenues fell 11% to $6.7 million.

“The automotive sector is the primary market for our fastener segment products and sales to automotive customers were $4,413,737 in the first quarter this year compared to $4,718,215 in the first quarter of 2019, a decline of $304,478, or 6.5%.”

Fastener segment sales to non-automotive customers fell 18.8% to $2.3 million.

“Fastener segment production costs in the first quarter were lower than a year earlier, with variable costs remaining consistent as a percentage of net sales with the first quarter of 2019, however, our fixed production costs were little changed which resulted in lower segment gross margins due to the lower level of sales.”

Fastener segment gross margins were down 82% to $1.09 million.

“Since some of our customers are classified as essential businesses and have been able to continue to operate, we have been able to continue our operations, but at a significantly reduced level, in order to service those customers during these shut-down orders.  To ensure the safety of our own employees during this unprecedented crisis, we have reduced personnel in our facilities in order to practice social distancing protocols and are following other safety practices recommended by the Centers for Disease Control.”

2019
During 2019, Chicago Rivet fastener sales declined 14% to $28.9 million.

“While North American light-vehicle production declined modestly in 2019, our sales to automotive customers declined 15.4% during the fourth quarter and 16.6% for the year.  Sales to non-automotive customers declined 26.9% in the fourth quarter and 8.9% for the full year after being down only 3.1% after three quarters.”

 

2018
Chicago Rivet & Machine Co. reported fastener segment revenues for 2018 increased 5.4% to $33.7 million, while segment gross margin gained 2.9% to $6. 83 million “despite the higher raw material costs.” The company said fastener segment sales reflected growth in each quarter, with much of that growth coming from non-automotive customers.

“While North American light-vehicle production was relatively flat in 2018 compared to 2017, our sales to automotive customers declined 7.8% during 8 the fourth quarter and 1.4% for the year,” the company stated.

“However, the decline in automotive sales was more than offset by growth in non-automotive sales which increased 25.9% and 21.7% in the fourth quarter and for the full year of 2018.”

Fastener segment capital expenditures increased 50% to $1.64 million during the year, including $956,739 for cold heading and screw machine equipment additions, $243,194 for equipment to perform secondary operations on parts and $296,289 for inspection equipment. The remaining $138,893 fastener segment additions consisted of general plant equipment and facilities improvements.

Fourth quarter fastener segment sales rose 2.1% to $7.82 million, with gross margin down 7.5% to $1.47 million.

“Steel is our primary raw material and we have experienced significant increases in our cost of steel during 2018 which was primarily responsible for the net decline in gross margins during the quarter despite the increase in sales.”

Overall Chicago Rivet sales gained 3.9% to $37.2 million during 2018, with net income down 3.7% to $2 million.

“Financial results for 2018 were positive by most measures, as we increased our revenues to the highest level since 2007,” the company stated.

Overall capital expenditures rose 51% to $2.02 million.

“Higher raw material prices, brought on by tariffs instituted during 2018, had a negative impact on earnings during the year. It is unknown whether there will be relief from higher material prices in 2019 even if the tariffs were to be eliminated.”

Fastener sales increased 2.2% to $8.9 million in the first quarter of 2018.

“U.S. light-vehicle sales rose approximately 2% during the first quarter of 2018 after experiencing the first full year decline in seven years in 2017,” the company stated. “The improvement in automotive sales and the addition of a number of non-automotive customers in the second half of 2017 contributed to the revenue increase in the first quarter.”

Q1 fastener segment gross margins declined 2.8% to $1.98 million, driven by Q1 production costs increases as “higher material costs exceeded savings related to tooling expense of $123,000.”

Capital expenditures for the fastener segment increased 5.4% to $184,227.

Assembly equipment segment revenues jumped 45.4% to $1.1 million in Q1 due to the shipment of a “high-dollar machine order.” The higher revenue contributed to a $142,668 increase in segment gross margin to $366,365. Material costs increased during Q1 but were offset by an overall reduction in overhead expenses.

Consolidated Q1 revenues at Chicago Rivet rose 5.6% to $10.01 million, while net income increased 38.6% to $707,788.

2017
Chicago Rivet & Machine Co. reported “financial results for 2017 were positive, although not as strong as those reported in 2016.”

Fastener segment sales declined 3.5% to $31.98 million in 2017.

“Domestic automobile and light truck sales declined approximately 2% during 2017, which negatively impacted our sales,” the company stated. “During 2017, fastener segment margins were pressured due to greater quality related expenses and a reversal of the favorable raw material prices experienced in 2016.”

Assembly equipment segment revenues declined 2.8% to $3.8 million, “primarily due to a reduction in the number of rivet setting machines shipped.” These declines were partially offset by an increase in machine parts and tool sales during 2017.

Consolidated sales declined 3.4% to $35.8 million in 2017, while net income declined 12% to $2.1 million.

Capital expenditures in 2017 totaled $1,34 million. The fastener segment accounted for $1,093,539 of the total, including $904,312 for production equipment. Cold heading and screw machine equipment additions were $303,992, quality control equipment additions were $281,983, additions for equipment to perform secondary operations on parts were $261,143 and $57,194 was expended for general plant equipment. The remainder of the fastener segment additions relate to building improvements and technology equipment.

Sales to foreign customers represented 12% of total sales in 2017.

During the second quarter, fastener segment revenues declined 8.6% to $8.1 million. Fastener segment gross margin fell 32% to $1.55 million, which included tooling costs of $122,000 for the quarter.

“The automotive sector is the primary market for our fastener segment products and domestic automotive sales have declined in the current year, which has negatively impacted demand for our products,” the company stated.

For the first six months of 2017, fastener segment revenues were down 2.7% to $16.8 million, hurt by reduced shipments to certain large automotive customers. Fastener segment gross margin decreased 16.6% to $3.6 million, which included tooling costs of $174,000 for the six-month period.

Overall Chicago Rivet revenues slipped 3.9% to $9.4 million in Q2, with net income falling 42% to $462,355.

First-half revenues were down 2.6% to $18.9 million, while net income slipped 11.7% to $973,277.

Chicago Rivet tempered its forecast for the second half of 2017, pointing to declining automotive sales despite increased car manufacturer incentives.

“Based on the current economic environment, we don’t believe overall business conditions during the second half of the year will be markedly different from those of the first half.

“While our strong financial condition should enable us to pursue opportunities to profitably grow revenues and improve net income, our results will continue to be impacted by the overall level of activity in the automotive market, and as such, we plan to emphasize our efforts to control costs and improve operating efficiencies.”

First quarter revenues rose 3.4% to $8.74 million, despite a decline in U.S. auto and light-truck sales during the quarter.

Production costs in the first quarter were comparable to last year with the notable exception of tooling expense, which was $52,000 greater, primarily due to new parts being produced. That increase limited improvement in the fastener segment gross margin to $15,290.

Fastener segment operating profit dipped 2.4% to $1.2 million, while capital expenditures fell 57% to $174,789.

Overall Q1 revenues declined 1.2% to $9.5 million, primarily due to lower machine sales “which more than offset an improvement in fastener segment sales during the quarter.”

“Sales in the first quarter were mixed as the increase in fastener segment revenues was offset by the reduction in the smaller assembly equipment segment,” the company stated.


2016
Chicago Rivet & Machine Co. reported “financial results for 2016 were very positive, with both operating segments recording increases in sales while net income improved by an impressive 39.7%.” 

Fastener segment sales grew 0.16% to $33.1 million, supported by modest growth in domestic automobile and light truck sales.

“Segment margins were further improved by favorable raw material prices during the year and a $141,000 reduction in tooling expense, contributing to a net increase in gross margin for the fastener segment of $329,235 in the fourth quarter and $1,144,067 for the full year of 2016.”

Overall net sales in 2016 increased 2.3% to $37.02 million, with net income up 40% to $2.35 million, or $2.44 per share.

“In addition to the increase in sales during 2016, our margins benefited from lower raw material prices compared to the year earlier period.”

Total capital expenditures in 2016 were $2.03 million. Fastener segment additions accounted for $1.7 million of the total, including $758,467 for the substantial completion of the H & L Tool building expansion that was begun in 2015. Cold heading and screw machine equipment additions totaled $180,818, while secondary processing equipment totaled $301,932. Inspection equipment comprised $247,330 of the fastener segment additions and the remaining additions of $195,406 were for various general plant equipment.

Sales to foreign customers represented 12% of total sales in 2016.

Chicago Rivet produces rivets, rivet-setting machines, parts and tooling for the automotive and appliance industries. The company has fastener operations in Naperville, IL; Madison Heights, MI; and Tyrone, PA.

Corporate Office: 901 Frontenac Rd., P.O. Box 3061, Naperville, IL 60566.
Tel: 630 357-8500
Web: chicagorivet.com
CEO: John Morrissey
Employees: 217