Jason Sandefur

Calling 2005 “one of the more difficult years in the company”s history,” Chicago Rivet & Machine Co. reported fastener profit fell 93.7% to $180,156 despite a 4.5% rise in revenue to $33.95 million.
“Although revenues within the fastener segment improved over 2004, this increase reflects a partial recovery of higher raw material costs, rather than an increase in volume. In addition, changes in our product mix had a negative impact on our bottom line,” Chicago Rivet stated in its annual report.
The company said fastener margins were hurt “by an increase in the percentage of product produced through the screw machine process.”
Overall revenue improved 1.3% to $39.76 million in 2005, but net results dipped to a loss of $398,612 compared with a $1.5 million profit during 2004. However the company remained free of outstanding debt for the third straight year.
During 2005 sales to two Chicago Rivet customers combined for about 37% of overall revenue. Sales to Fisher & Co. accounted for approximately 24% of consolidated sales, while sales to TI Group Automotive Systems Corp. accounted for approximately 13% of overall annual revenues.
Capital expenditures declined 53.7% to $647,162, with $91,000 going for fastener plating and quality control equipment.
“Many of the challenges that contributed to poor results in 2005 remain in evidence as we begin 2006. Increasing revenues remains critical to a return to profitability and continues to be a key objective,” the company stated.
Chicago Rivet named Michael Bourg to replace longtime COO John Osterman, who retired in May 2006. Bourg has been part of the company”s management team since December 1998.
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; Jefferson, IA; Madison Heights, MI; and Tyrone, PA.
Headquarters: 901 Frontenac Rd., P.O. Box 3061, Naperville, IL 60566. Tel: 630 357-8500 Fax 630 983-9314
Web: chicagorivet.com
ASE Symbol: CVR
CEO: John Morrissey, 70
COO & Investor Relations: Michael Bourg
Founded: 1927
Employees: 297
Percentage of revenue from fastener-related products: 85%
\ �2006 FastenerNews.com