5/17/2010
HEADLINES
Stock Report: CHICAGO RIVET
“Economic conditions, which were weak at the close of 2008, worsened in early 2009 and had a dramatic impact on revenues in both the fastener and assembly equipment segments,” Chicago Rivet reported.
Fastener segment revenue dropped 25.9% to $18.3 million during the year, with the drop in domestic automotive production contributing to a segment loss of $496,877.
During the first six months of 2009 fastener segment sales declined 46.2%. Conditions began to improve in the second half of the year, with fastener sales growing 36.4%, or $2.8 million.
To offset the decline in demand, fastener segment payroll was reduced by more than 20% through reductions in hours worked and headcount. Additional savings were generated by reductions in all significant overhead categories, including tooling, containers, maintenance and supplies.
“The decline in (fastener) sales was too severe to be offset by cost controls, resulting in a decline in fastener segment gross margin to $1,891,870, from $2,585,306 reported in 2008.”
A more rigorous quoting process for obtaining various services and supplies is providing additional savings that should continue to provide benefits as demand improves.
Overall sales dropped 25% to $21.4 million during 2009, producing a net loss of $1.28 million.
Capital expenditures for fastener production totaled $443,643, which included $115,000 for cold heading and screw machine equipment, $92,000 for various equipment that expanded our secondary processing capabilities, and $63,000 for inspection and other quality related equipment.
Chicago Rivet produces rivets, rivet-setting machines, parts and tooling for the automotive and appliance industries. The company relies primarily on independent sales representatives.
Chicago Rivet 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 Fax 630 983-9314
Web: chicagorivet.com
CEO: John Morrissey, 74
Employees: 208
©2010 GlobalFastenerNews.com
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