1/4/2016 12:06:00 AM
HEADLINES
Fastener Stocks Decline in 2015

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U.S. stocks closed lower in 2015, capping the worst year for the market since 2008.

Industrial and aerospace fastener stocks took their share of market losses, with the FIN Fastener Stock Index falling 15.9% for the year. A comparative index of related industrial stocks declined 1% during 2015.

Only two of the twenty public companies tracked by the FINdex made stock gains during the year. Stanley Black & Decker shares climbed 11%, while shares of Tree Island Steel jumped 135%.

After falling three straight quarters, the FINdex rose in final quarter of the year, increasing 1.6%. But gains were modest and unable to cover mounting stock losses for many publicly traded companies with industrial fastener holdings.

Companies gaining 10% or more in share value during Q4 included Fastenal (up 10.3%); ITW (up 12.6%); Park Ohio (up 27.4%); Stanley Black and Decker (up 10%); Tree Island Steel (up 14%); and TriMas (up 14%).

The FINdex fell 1.3% in Q3. A comparative index of related industrial stocks declined 2% during Q3. Only two of the twenty publicly traded companies with fastener holdings tracked by the FINdex achieved share gains during the period: Dorman Products (up 6.8%) and Precision Castparts (up 14.9%).

In August, billionaire investor Warren Buffet’s Berkshire Hathaway agreed to acquire Precision Castparts Corp., which manufactures aerospace fasteners and other products, for $37.2 billion cash. The price equals about $235 per share. 

During the first nine months of 2015, the FINdex fell 20.7%, compared to a 6.7% loss by an index of related industrial stocks.

FINdex companies losing 10% or more in share value during the first nine months of 2015 included Alcoa (down 38.9%); Anixter (down 33.5%); Carpenter Technologies (down 39.5%); Chicago Rivet (down 18.7%); Bisco Industries (down 19.9%); Fastenal (down 23%); Grainger (down 15.6%); ITW (down 13%); KLX Inc. (down 13.3%); Lawson Products (down 18.5%); MSC Industrial (down 25%); Nucor (down 23.4%); Park-Ohio (down 54%); TriMas (down 47.8%); and Wesco Aircraft (down 12.7%).

The FINdex dropped 7.4% in the second quarter of 2015. A comparative index of related industrial stocks declined 0.4% during Q2.

Only seven of the twenty publicly traded companies with fastener holdings tracked by the FINdex achieved share gains during the period: Bisco Industries (up 6.8%); Fastenal (up 2%); Grainger, which recorded a slight gain; KLX (up 14.5%); Lawson Products (up 1%); Stanley Black and Decker (up 10%); and Tree Island Steel (up 76%) in Q2.

FINdex companies losing 10% or more in share value during the second quarter of 2015 included Alcoa (down 13%); Anixter (down 14%); and Chicago Rivet (down 14%).

The FINdex declined 6.9% in the opening quarter of 2015, reversing gains it made during the final quarter of 2014. A comparative index of related industrial stocks rose 2% during the first three months of 2015.

During the first half of 2015, the FINdex dropped for a second consecutive quarter at the end of June, dropping 13.8%. A comparative index of related industrial stocks grew 1.5% during the first six months of 2015.

The biggest winner was Tree Island Steel, which saw its share value more than double in the first half. Only three other FINdex companies achieved gains during the period: KLX (the spinoff of B/E Aerospace’s fastener distribution segment) saw its stock grow 7%; Stanley Black & Decker shares improved 9.5%; and Wesco Aircraft stock increased 8.4% in the opening six months of 2015.

Fastener stocks losing 10% or more in value during the first half include Alcoa (-29%); Anixter (-26%); Carpenter Technology (-21.5%); Bisco Industries (-10%); Fastenal (-11%); Lawson Products (-11%); MSC Industrial (-14%); Nucor (-10%); Park-Ohio (-23%); and Precision Castparts (-17%).

The FINdex declined 6.9% in the opening quarter of 2015, reversing gains it made during the final quarter of 2014. A comparative index of related industrial stocks rose 2% during Q1.

In 2014, the FINdex lost 2.5% of its value, compared to a 7.2% gain by an index of related industrial stocks.

FIN Subscribers can also read a summary of the last seven years of fastener results for FINdex companies by visiting the FIN Stock Review section of GlobalFastenerNews.com.