Chicago Rivet reported fastener segment revenues rose 11.6% to $9.03 million in the second quarter of 2018.

“Our current year fastener segment sales have been supported by a 2% increase in U.S. light-vehicle sales,” the company stated. “Additionally, we have added a number of non-automotive customers in the past year which has contributed to an increase in such sales.

“However, we have experienced increases in steel prices, our primary raw material, in recent months that have negatively impacted our gross margins and remain a concern as further increases are expected.”

Q2 fastener segment gross margins gained 32% to $2.04 million, with operating profit increasing 63% to $1.23 million and capital expenditures declining 45% to $281,692.

“Raw material purchases were accelerated during the second quarter in an effort to avoid tariff charges which contributed to a $0.9 million increase in inventory and a $0.8 million increase in accounts payable.”

For the first six months of 2018, fastener segment revenues rose 6.7% to $17.96 million. Segment gross margins improved 12.2% to $4.02 million, with segment operating profit up 23.6% to $2.4 million and capital expenditures dropped 32% to $465,919.

“The overall improvement in fastener segment margins during the first six months of 2018 was primarily due to the increase in sales in the current year as well as the reduction in certain overhead expenses, most significantly tooling which declined $127,000, which helped offset the impact of higher steel prices.” Web: ChicagoRivet.com