11/10/2009
HEADLINES
STOCKS: Precision Castparts, Nucor Fastener, B/E Aerospace, Alcoa, Anixter, Carpenter Tech, Black & Decker, Grainger, Lawson, MSC Industrial, Simpson Strong-Tie and TriMas
PCC Fastener Sales Decline
Fastener Products sales at Precision Castparts Corp. dropped 16% to $338 million during the second quarter of fiscal 2010. Destocking at OEMs and distributors dampened aerospace sales by 10%, while weak economic conditions caused a year-over-year decline in general industrial/automotive sales of approximately 20%. Fastener Products operating margins improved to 32.5% despite a 7% decline in income to $109.8 million.
During the first half of fiscal 2010, Fastener Product revenue fell 14% to $689.8 million, with operating income slipping 3% to $223.8 million.
Overall PCC sales dropped 27% to $1.3 billion, while operating income declined 16% to $337 million and net income fell 17% to $218.3 million. Web: precast.com
Nucor Fastener Segment Sales Slip
Nucor Corp. reported cold finished steel sales, including fasteners, dropped 24% to 87,000 tons during the third quarter of 2009.
Nine-month cold finished steel sales sunk 38% to 243,000 tons.
Overall Nucor sales increased 26% to $3.12 billion during Q3, compared with $2.48 billion in the second quarter of 2009. Sales decreased 58% compared with $7.45 billion in the third quarter of 2008. Average sales price per ton increased 1% from the second quarter of 2009 and decreased 45% from the third quarter of 2008. Total tons shipped to outside customers were 5,114,000 tons in the third quarter of 2009, an increase of 24% over the second quarter of 2009 and a decrease of 24% from the third quarter of 2008.
Nine-month Nucor sales decreased 58% to $8.25 billion. nucor-fastener.com
B/E Aerospace Fastener Segment Sales Top $617m
B/E Aerospace’s fastener business, B/E Aerospace Consumables Management, reported sales slid 30% to $181 million on a proforma basis during the third quarter of 2009. Q3 segment operating earnings fell 23% to $33.5 million.
Consumables Management sales during the first nine months of 2009 dropped 23.9% to $617 million, while operating income decreased 21.6% to $116.7 million.
Overall B/E Aerospace sales dipped 26.9% to $459.8 million during Q3, while operating earnings slipped 32.5% to $69.6 million. Web: beaerospace.com
Destocking Hampers AFS Revenue
Alcoa’s Engineered Solutions segment, including Alcoa Fastening Systems, reported sales declined 28% to $1.13 billion during the third quarter of 2009.
“(Engineered Products) ATOI for the quarter of $75 million was 15% (lower), driven by continued aerospace destocking, industrial gas turbine market declines, and normal seasonal impacts,” the company stated. “This was partially mitigated by improved demand in commercial transportation and strong results from spend reduction efforts.”
Nine-month Engineered Solutions revenue dropped 25% to $3.59 billion, with operating income slipping 43% to $258 million.
Overall Q3 sales rose to $4.6 billion, a 9% sequential quarter increase, but down 34% from the third quarter of 2008. Net income during the third quarter declined 71% to $77 million. Web: alcoa.com
Anixter North American Fastener Segment Achieves “Best Sales Performance”
Anixter International reported sales at its North American OEM Supply segment, including fasteners, turned in the company’s “best sales performance in North America … where continuing softness with aerospace customers was partially offset by a small amount of growth with industrial customers,” stated CEO Robert Eck.
OEM Supply sales in North America declined 8% to $128.8 million during the third quarter of 2009.
European OEM Supply sales, including fasteners, dropped 34% to $98.9 million during Q3, though “sales in this market were flat sequentially from the second to the third quarter,” Eck stated.
Nine-month OEM Supply sales in North America slipped 3% to $372 million, with segment sales in Europe falling 37% to $303.2 million.
Overall Q3 sales at Anixter dropped 20% to $1.27 billion, while operating income fell 51% to $58.4 million.
In early July Anixter Pentacon and Anixter Eurofast were combined as the Aerospace Hardware division of Anixter Inc. Chatsworth, CA-based Anixter Aerospace Hardware has facilities in Texas, Canada, the UK and France. Web: anixter.com
Carpenter Tech Fastener Sales “Soft”
Carpenter Technologies reported aerospace market sales, including fasteners, fell 35% to $102.9 million, during the first quarter of fiscal 2010.
“Fastener demand, in particular, continues to be soft with excess inventory remaining at manufacturers and distributors and a longer lead time to builds,” the company stated.
Industrial market sales, including fasteners, declined 49% to $50.4 million during fiscal Q1.
Consolidated company sales declined 38% to $233.7 million during Q1, while income fell to a net loss of $9.8 million. Web: cartech.com
Black & Decker Fastener Sales Fall 23%
Black & Decker fastener sales declined 23% to $132.8 million during the third quarter of 2009, while operating income fell 55% to $12.3 million.
Results improved sequentially, particularly in the North American automotive division, as the auto industry’s production rates rose from the depressed levels in the first half of 2009.
Fastener sales during the first nine months of 2009 dropped 30% to $381.7 million, with operating income decreasing 74% to $22 million.
Overall Q3 sales dropped 23% to $1.2 billion, with net income dropped 35% to $55.4 million. Web: bdk.com
Grainger U.S. Sales Drop 14%
Grainger reported third quarter sales, including fasteners, dropped 14% to $1.59 billion, while net earnings grew 3% to $145 million versus $140 million in 2008. Operating earnings declined 19%.
U.S. sales decreased 14% to $1.4 billion during Q3, with operating earnings falling 15% to $204.4 million. Sales fell in all U.S. customer end-markets.
Nine-month sales in the U.S. slipped 12% to $4.06 billion, while operating earnings declined 14% to $554.2 million.
Sales in Canada dropped 13% to $166.3 million, with operating earnings falling 40% to $8.4 million. Growth in the oil and utilities sectors “remained favorable in the quarter.”
Nine-month sales in Canada decreased 16% to $470.8 million, while operating earnings slid 42% to $24.05 million. Web: grainger.com
Lawson OEM Margins Improve
Lawson Products Inc. reported sales, including fasteners, dropped 24% to $95.1 million during the third quarter of 2009. Gross profit declined 20% to $56.4 million, though margins improved on better OEM performance. Q3 net income fell 51% to $1.5 million.
Sales for the first nine months of 2009 dropped 23% to $289.5 million, with an operating loss of $2.7 million and a net loss of $2.6 million. Web: lawsonproducts.com
MSC Industrial Sales Dip 21%
MSC Industrial reported sales, including fasteners, dropped 21% to $354.1 million during the final quarter of fiscal 2009. Operating income fell 46% to $41.8 million, while net income declined 48% to $26 million in a “highly competitive” pricing environment.
Full year sales, including fasteners, decreased 16% to $1.49 billion, with operating income falling 35% to $204.7 million and net income slipping 36% to $125.1 million. Web: mscdirect.com
Simpson Strong-Tie Sales Drop
Simpson Strong-Tie sales, including fasteners and anchor systems, fell 22% during the third quarter of 2009, as weak homebuilding activity hampered growth.
During the first nine months of 2009 Simpson Strong-Tie revenue decreased 25.5%.
Overall Q3 sales at parent company Simpson Manufacturing Co. fell 23.9% to $167.2 million, while net income was nearly halved to $12.8 million.
Nine-month sales dipped 25% to $452.4 million, with profit off 71% to $15 million. Web: simpsonmfg.com
TriMas Fastener Sales Dropping
TriMas Corp. reported lower blind-bolt fastener sales pushed third quarter Aerospace & Defense segment revenue, including Monogram Aerospace Fasteners, down 34.6% to $16.06 million, hampered by program delays at commercial airframe manufacturers and inventory reductions at distribution customers. Q3 operating profit fell 40% to $5.2 million.
Nine-month Aerospace & Defense segment sales declined 14% to $56.53 million, with operating profit dipping 17% to $18.4 million.
Overall TriMas revenue decreased 22% to $203.7 million, while operating profit dropped 26.7% to $20.2 million. Web: trimascorp.com ©2009 GlobalFastenerNews.com
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