4/13/2009
HEADLINES
STOCKS: Chicago Rivet, Black & Decker, Lawson, Paulin, MSC, TZ Ltd.

Chicago Rivet Sales Decline
Chicago Rivet & Machine Co. reported sales dropped 24% to $28.5 million during 2008.

For the year the Naperville, IL-based fastener maker realized a loss of $1.25 million before taxes, and a net loss of $825,482.

The outcome had been anticipated by the company.

“With the possibility of a recession that would likely affect all the markets we serve, we expect customers will continue to demand higher quality and lower prices as their operations cope with a difficult economic environment,” the company stated at the beginning of 2008. “Our ability to increase revenues while diversifying our customer base will be significant factors determining our future success.”

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. Web: chicagorivet.com

Black & Decker Raising Long-Term Cash for Auto Slowdown
Hurt by shrinking auto markets, Black & Decker Corp. plans to replace its short-term debt with higher-interest long-term debt in light of the recession and recent ratings downgrades, the company stated.

Analysts say the company’s decision to raise long-term cash comes amid deterioration of its automobile-related business, including fastener supplier Emhart Teknologies.

Black & Decker floated a $350 million bond offering, hoping to use proceeds primarily to pay down $283 million in existing debt.

Black & Decker has been the subject of market speculation concerning Danaher as a possible buyer, the Baltimore Sun reports. Analysts have largely dismissed the speculation as highly unlikely. Web: emhart.com

Lawson To Cut 150 Jobs; Closing Dallas Facility
Looking to cut costs, Lawson Products said it would layoff 150 employees – about 11% of its overall workforce, according to SEC documents.

Likewise, Lawson is closing its MRO distribution center in Dallas, TX, which is expected to be shuttered by the end of the second quarter. Lawson will incur a charge of $5.5 million to $7 million.

Coupled with the closing of its distribution facility in Charlotte, NC, the job cuts and facility consolidation are expected to save the company between $10 million and $12 million annually.

As of December 31, 2008, Lawson employed approximately 1,350 full-time workers, including 340 sales and marketing employees, 760 operations and distribution employees and 250 management and administrative staff.

Lawson reported sales dropped 5% to $485.2 million during 2008, with a net loss of $27.6 million. Web: lawsonproducts.com

Paulin Sales Up in Down Economy
H. Paulin reported sales rose 2% to CAD 138.2 million during 2008, though the Canadian fastener manufacturer tallied a yearly net loss of CAD 729,000 compared with a CAD 1.8 million profit for 2007.

Paulin recorded charges of $3.1 million in the fourth quarter “due to the significant downturn in the automotive sector.”

Fourth quarter sales slipped 3% to CAD 29.42 million, while Q4 income declined to a loss of CAD 2.6 million, compared to a CAD 535,000 loss during the final quarter of 2007. Web: hpaulin.com

MSC Revenue Tops Estimates
Topping market estimates, MSC Industrial Direct Co. reported sales of $351.9 million during the second quarter of fiscal 2009.

Net income dropped 45% to $26.3 million, while operating expenses declined 3% to $120.6 million for the quarter. MSC doubled its cash reserves to about $138 million.

At present the company has suspended its 401(k) matching contribution and cut executive incentives.

For the upcoming quarter, MSC forecasts sales of $339 million to $351 million.

Founded in 1941, MSC Industrial distributes 590,000 metalworking and MRO supplies – including fasteners and hardware – from 3,000 suppliers to 371,000 customers. Mellville, NY-based MSC has 97 branch sales offices and 912 sales people. Web: mscdirect.com

TZ Limited Cuts Executive Pay
Intelligent fastener maker TZ Ltd. announced its top executives, including CEO Chris Kelliher, would forego 20% of their salaries during the economic slump, the Australian Financial Review reports.

The move should net TZ around $530,000 a year.

Headquartered in Chicago, TZ invented the Intevia Intelligent Fastening Technology, which features embedded microchips controlled by radio frequency signals for remote-controlled applications through the use of shape-memory alloys and polymers.

TZ has created IP and proprietary knowledge around the field of intelligent fastening with over 100 engineers and scientists capable of leveraging the technology into industry. Web: tzlimited.com