Third Quarter FIN Fastener Stock Index Plummets 20.4%

John Wolz

Fastener stocks plunged 20.4% during the third quarter of 2002. It is the sharpest drop in the six-year history of the FIN Fastener Stock Index. \

An index of related North American and world stock markets fell only 6.6% in the third quarter, but that was far better than the blue chips, which fell 17.9% for Q3.
Previously the biggest drop in the FIN Fastener Stock Index was 17.2% in the third quarter of 2001. The end of the quarter came just after the September 11 terrorist attacks.
The FIN Index rose 6.2% for the full year of 2001.
The FIN Index was up 11.8% in the first quarter this year, compared with stock markets rising 3.4%. In Q2 fastener stocks edged down 1.6%, while related stock markets fell 11.5%.
Fastener stocks are down 10.5% thus far during 2002.
European blue chips are down 35% for the year. Japanese stocks started strong for 2002, but the Nikkei stock average has fallen to its lowest level since 1983. Brazilian stocks fell 23% during the third quarter.
Among the few fastener gainers was Fairchild Corporation, which rose from $3.15 to $5.19. But the soon-to-be parent company, Alcoa, which has a deal pending to acquire the Fairchild Fasteners division, dropped from 33.15 to 19.30.
TransTechnology, which is nearing completion of deals to sell its fastener businesses, rose from 11.35 to 13.50.
Federal Screw Works is another fastener stock showing a gain. At 41.55 FSR is up from 39 at the end of the second quarter and 35.01 at the beginning of the year.
At 8.66 R&B Inc. gained one penny. And it is up from 6.95 at the end of 2001.
Chicago Rivet & Machine edged down 40 cents to $25.30 from the end of Q2 to Q3, but remains above its 22.50 price at the beginning of the year.
Lawson Products edged down in the third quarter from 30.81 to 29.15 but remains ahead of its 27.19 at the beginning of the year.
Park-Ohio also remains ahead for the year. Though down 50 cents to 4 at the end of the third quarter, Park-Ohio started at 3.18.
Other fastener stocks showed substantial declines. Nucor was down from 65.04 to 37.90.
Though down from 5.50 at halfway through 2002, Ivaco at 3.70 remains above its 3.25 at the close of 2001.
Other fastener stocks losing more than 10% of stock price during Q3 included: Aviall, Barnes, B/E Aerospace, Black & Decker, Danaher, Dover, Fastenal, Honeywell, ITW, Kaydon, PennEngineering, Precision Castparts, SPS and Textron.
During the quarter Anixter International Inc. completed acquisition of fastener distributor Pentacon Inc. After struggling with debt from acquisitions since its 1998 IPO, Pentacon was in bankruptcy.
�Investors keep hoping for a turnaround, and their hopes keep getting dashed,� E.S. Browning of the Wall Street Journal summarized the third quarter of 2002 after nearly two years of a troubled economy.
�This is when things were supposed to be getting better. Instead, to the dismay of investors, they have kept getting worse.�
The end of the third quarter 2002 saw the Dow industrials dropping to their lowest close in more than four years.�
It appears 2002 may be the third consecutive year of overall declines for the stock market, which Browning noted hasn�t happened since 1939 to 1941. �2002 FastenerNews.com