Global Fastener News

FIN Review of Fastener Stocks in 2002 A-K

Jason Sandefur

Alcoa
Alcoa Inc. doubled its presence in the fastener industry with the $657 million acquisition of Fairchild Fasteners in December 2002. The cash deal completed Fairchild Corp.�s exit from the industry except for some operations in its Banner Aerospace subsidiaries. Alcoa combined Fairchild Fasteners with Huck International to form Alcoa Fastening Systems with projected revenue of about $1 billion. AFS employs 5,500 people in two divisions: aerospace products and commercial products. Former Fairchild Fastener chief Olivier Jarrault is AFS president and reports to William Christopher, Alcoa executive vice president and group president for Aerospace, Automotive and Commercial Transportation.
Alcoa Fastening Systems is headquartered at 3000 W. Lomita Blvd., Torrance, CA 90505.
Last year Fairchild Fasteners generated $560.8 million in sales, nearly 90% of Fairchild�s total revenue. Operating income increased 12.4% to 41.6 million on the 4.4% sales improvement.
About 60% of Fairchild Fastener revenue is generated from the aerospace industry, 23% is from commercial transportation, and 17% is automotive business. Fairchild Fasteners customers include Boeing, Airbus, Bombardier, Delta Airlines and US Airways. The division owns three fastener factories in California, three in France and two in Germany. In addition, Fairchild Fasteners leases plants in California, Massachusetts and Oakleigh, Australia.
In January 2003 Alcoa announced plans to sell its �commodity automotive fasteners business� but did not specify any locations or facilities.
Aluminum-giant Alcoa entered the fastener industry with the 2000 acquisition of Cordant Technologies Inc., which included Huck. Huck had acquired fastener manufacturer Jacobson Mfg. Co. Inc. in 1998 and Chicago-based Continental/Midland Group in 1999.
Huck products include threaded and non-threaded fasteners, lock bolts, blind bolts, locknuts, blind rivets and cap screws for aerospace, automotive and construction use.
Corporate Office: 201 Isabella St., Pittsburgh, PA 15212-5858. Tel: 412 553-4545 Fax 412 553-4498
Web: alcoa.com
NYSE Symbol: AA
CEO: Alain Belda, 59
Investor Relations: William Oplinger
Key fastener executives: Olivier Jarrault, president, Alcoa Fastening Systems; Don Busby, president, commercial products
Founded: 1888
Employees: 127,000
Percentage of revenue from fasteners: 5%
Alleghany
Despite a strong fourth quarter, Alle-ghany Corp. reported a 37.6% drop in 2002 revenue, with net earnings falling 87% to $54.8 million.
Heads & Threads International LLC, the fastener importing segment of Alleghany, reported 2002 earnings improved to $2.44 million from a loss of $20.2 million in 2001. Revenue dropped 7.5% to $110.4 million on declining domestic demand for fasteners.
Greg Brown replaced Don Haggerty as CEO of HTI in April 2003. Haggerty held the top spot for the past two years. Brown is the former CEO of Vancouver, BC-based Xantrex Technology Inc., a privately held manufacturer of power electronic products with $105 million in sales last year.
HTI celebrated its 50th anniversary in early 2003. The master distributor and importer was founded in 1953 as Heads and Threads Co. in Chicago.
Known primarily as an insurance company, Alleghany has held fastener importer and master distributor HTI since 1974. It expanded in fasteners in the past few years with the acquisition of Reynolds Fasteners Inc. and Gardenbolt International.
In addition to fasteners, Alleghany handles property and casualty insurance, reinsurance, industrial minerals, and real estate.
Corporate Office: 375 Park Ave, New York, NY 10152. Tel: 212 752-1356 Fax 212 759-8149
Web: headsandthreads.com
NYSE Symbol: Y
CEO: John Burns Jr., 71
Investor Relations: Robert Hart
Key fastener executive: Greg Brown, CEO of HTI
Founded: 1916
Employees: 2,132
Percentage of revenue from fasteners: 19%
Allied Capital
Allied Capital Corp. entered the fastener business by backing a management buyout of industrial distributor Hillman Companies Inc. (formerly SunSource) during 2001. Allied owns a 96.8% stake in Hillman, which reported a 15.3% increase in net sales to $286.8 million during 2002. Fasteners accounted for 57% of Hillman�s revenue last year.
In 2002 Hillman acquired FAS-N-IT and Anchor Wire/ DIY Business from Fastenal for $15.3 million. Hillman also bought certain assets of Lowe�s specialty fastener business from R&B Inc. for about $7.5 million, allowing it to provide fasteners to all Lowe�s locations. The Lowe�s acquisition provided $17.7 million in sales, accounting for nearly 47% of Hillman�s $38 million sales increase during 2002. The DIY business had sales of $4.7 million for the year.
Cincinnati, OH-based Hillman distributes fasteners, anchors, letters, numbers, signs, keys, rope, chain, cable accessories and other specialty goods to hardware and home center stores.
Hillman buys 37,500 products from about 650 vendors and distributes the items from 12 distribution centers, including its new $9.8 million facility in Cincinnati, OH. Hillman employs 1,800 people.
Headquarters: 1919 Pennsylvania Ave. NW, Washington, DC 20006-3434. Tel: 202 331-1112 Fax 202 659-2053
Web: alliedcapital.com
NYSE Symbol: ALD
CEO: William Walton, 53
Investor Relations: Joseph Corvino
Founded: 1958
Employees: 105
Anixter
Anixter International Inc. entered the fastener business with the May 2002 agreement to purchase Pentacon Inc. Pentacon was on the verge of bankruptcy due to $100 million in debt, much of it from acquisitions, when Anixter stepped in. The deal closed September 20, 2002, for $108.5 million, transforming the fastener distributor into Anixter Pentacon. Anixter said the acquisition decreased its dependence on the weak telecommunications industry.
Anixter CEO Robert Grubbs was pleased with Pentacon�s break-even results during the fourth quarter of 2002. In a show of confidence Grubbs transferred $130 million of established wire & cable OEM supply business to Anixter Pentacon management.
2002 sales for Pentacon dropped 20.8% to $205.3 million, compared with $259.4 million for 2001 and $283.7 million for 2000.
Pentacon operates aerospace and industrial divisions. The company was founded as a merger of five fastener distributors: Alatec Products, AXS Solutions, Capital Bolt & Supply, Maumee Industries and Sales Systems Ltd.
Chicago billionaire Sam Zell is chairman and owns 14% of Anixter, which was named a Forbes �Platinum 400� company in 2002. Zell owns 24.5% of Pentacon�s senior subordinated notes.
In May 2003 Anixter moved its corporate headquarters from Skokie, IL, to a 167,000 sq ft facility in Glenview.
Anixter is a global distributor of wiring systems and networking products that sells 185,000 items from more than 2,000 suppliers to 82,000 active customers.
Corporate Office: 2301 Patriot Blvd., Glenview, IL 60025-8020. Tel: 224 521-8000 or 800 ANI-XTER Fax 224 521-8555
Web: anixter.com
NYSE Symbol: AXE
CEO: Robert Grubbs Jr., 46
Investor Relations: Dennis Letham, CFO
Key fastener executives: Pentacon CEO Rob Ruck; Kent Rosenthal, Pentacon vice president of finance; Marty Jones, Pentacon vice president of materials; Jay McFadyen, Pentacon vice president of contracts; Wayne Williams, Pentacon vice president of operations; Melissa McKay, Pentacon vice president of business processes; Joseph Homa, Pentacon senior vice president; and Fran Lampman, Pentacon vice president of sales & marketing
Founded: 1957
Employees: 5,000
Percentage of revenue from fasteners: 8%
Aviall
Aviall Inc. combated weak commercial airline industry performance by ramping up military sales 900% to nearly half of overall revenue in 2002. �Aviall�s 2002 performance clearly shapes up as one of the brightest in the company�s history,� CEO Paul Fulchino reported. Military sales helped the company grow revenue by 58.7% during the year, most of it in North America. Overall, the company nearly doubled in size and tripled in income.
Aviall slashed capital expenditures 67% in 2002 to $6.9 million. The company projects capital spending of $12 million this year.
Aviall provides new aviation parts and aftermarket services through two subsidiaries: Aviall Services Inc. and Inventory Locator Service Inc.
Aviall is an independent, global distributor of aviation parts and inventory management services to 17,000 aviation customers and 250 airlines. Aviall sells 90,000 products from more than 180 manufacturers.
In December 2001 Aviall won a 10-year, $3-billion contract from Rolls Royce to supply aftermarket parts for military aircraft.
CEO Paul Fulchino has piloted the company since January 2000. Fulchino, a former Raytheon Co. engineer, was COO of B/E Aerospace Inc. from 1996 to 1999.
Headquarters: 2750 Regent Blvd., DFW Airport, Dallas, TX 75261-9048. Tel: 972 586-1000 or 800 284-2551 Fax 972 586-1361
Web: aviall.com
NYSE Symbol: AVL
CEO: Paul Fulchino, 56
Investor Relations: David Leedy
Founded: 1981
Employees: 875
Barnes Group
In early 2003 Barnes Group Inc. acquired MRO distributor Kar Products for $78.5 million, adding about $122 million in annual sales to Barnes Distribution. The company announced it will sell more than 2 million shares of its common stock and use the proceeds to help pay down the debt it incurred in acquiring Kar Products and parts of its Canadian subsidiary, A&H Bolt & Nut Co.
Barnes will offer 2 million shares owned by the company and 823,506 shares owned by GC-Sun Holdings II, a current shareholder. The company also said it would give underwriters of the public offering an option to buy an additional 423,525 shares to cover any over allotments. Barnes has a total of 19,894,312 shares of common stock outstanding.
The company said it expects net proceeds from the stock sale to be between $39.9 million and $48.5 million.
The acquisition added a sales force of about 600 to Barnes� existing sales and service organization and gave the company nearly 40,000 new customers in all 50 states. Barnes officials believe the deal places the company among the top 10 industrial distributors in North America, the company said in its SEC filing.
Barnes Group recovered from the slumping aerospace industry in 2002 by cutting costs and diversifying its customer base, allowing it to post a 2% growth in revenue to $784 million. Operating income increased 11% to $44.8 million, while net income rose 42% to $27.2 million.
The aerospace decline continued throughout the year, with Barnes Aerospace division sales slipping 9% to $183 million. Barnes cut 20% of its aerospace workforce in 2002.
Barnes is an international manufacturer and distributor of precision metal parts and industrial supplies. The company has three separate businesses: Associated Spring (41% of revenues) produces and distributes custom springs and other close-tolerance engineered metal components; Barnes Distribution (36%) handles MRO products, including fasteners, for industrial, heavy equipment and transportation markets; Barnes Aerospace (23%) produces precision machined assemblies and refurbishes jet engine components.
Barnes Distribution reported 2002 sales dipped 4% to $286.7 million, while operating profit rose 36% to $7.5 million.
Headquarters: 123 Main St., Bristol, CT 06011-0489. Tel: 860 583-7070 Fax 860 589-3507
Web: barnesgroupinc.com
NYSE Symbol: B
CEO: Edmund Carpenter, 61
Investor Relations: Phillip Penn
Key Fastener Executives: Leonard Carlucci, president, Associated Spring; Keith Drewett, president, Barnes Distribution; Idelle Wolf, COO, Barnes Distribution
Founded: 1857
Employees: 6,200
B/E Aerospace
B/E Aerospace completed the closure of four facilities and terminated about 1,000 jobs by the end of 2002 to counter a struggling aerospace market that reduced the company�s revenue by 22%. 2002 net sales for fasteners fell 12% to $78 million. Another facility closure and 400 more job cuts are expected in 2003.
B/E Aerospace, known as a manufacturer of commercial jet interiors, entered the fastener industry with the 2001 acquisition of M&M Aerospace Hardware Inc. for $184.7 million. M&M distributes aerospace fasteners, with 70% of its sales in the aftermarket. In January 2003 M&M opened a fastener distributor facility in Hamburg, Germany, to serve B/E�s growing international customers.
About 60% of company net sales in 2002 were in North America.
CEO Robert Khoury predicts that despite a lagging airline industry, most of B/E�s $155 million consolidation is completed and the company is now poised to weather an uncertain future.
Since 1989 BE has acquired more than 20 companies. About 85% of revenues are from sales to airlines, and thus BE is dependent on the health of the global airline industry.
Corporate Office: 1400 Corporate Center Way, Wellington, FL 33414-2105. Tel: 561 791-5000 Fax 561 791-7900
Web: beaerospace.com
NASDAQ Symbol: BEAV
CEO: Robert Khoury, 60
Investor Relations: Max Kuniansky
Key Fastener Executive: Robert Marchetti, Group Vice President & GM of Fastener Distribution Group
Founded: 1987
Employees: 3,700
Percentage of revenue from fasteners: 15.5%
Black & Decker
Black & Decker Corp�s 2001 acquisition of the automotive division of Bamal Corp. helped the company�s Fastening & Assembly Systems segment post record sales of $502.4 million in 2002, an increase of 5%, while operating profit grew 5% to $72.1 million. Those results were nearly double the overall company�s sales improvement of 3%. Technology-based automotive fasteners and higher automotive production also boosted results, CEO Nolan Archibald reported. Archibald praised the fasteners segment for �consistent, strong financial results� and �impressive margins.�
Black & Decker began restructuring in 2002, closing three plants and shifting production to Mexico and the Czech Republic. The company plans to close its Eastern Shore plant and eliminate 1,300 jobs by the end of 2003.
Best known for its power tools, Black & Decker maintains a fastener industry presence through Emhart Teknologies, which manufactures Dodge, Gripco, Gripco Assemblies, Heli-Coil, NPR, Parker-Kalon, Pop, Pop-Lok, Powerlink, T-Rivet, Ultra-Grip, Tucker, Warren, Dril-Kwik, Jack Nut, Kalei, Plastifast, Plasti-Kwick, Popmatic, Popnut, Pop-Sert, Swageform, Weldfast, SWS, Spiltfast, Nut-Fast, Well-Nut, F-Series, Menator, Point & Set, Pars and Ultrasert.
Black & Decker�s principal fastener markets are automotive, transportation, construction, electronics, aerospace, machine tool and appliance industries.
Black & Decker has 39 factories in 11 countries, and its products are sold in more than 100 countries.
Fastener production facilities are in Danbury, CT; Montpelier, IN; Campbellsville and Hopkinsville, KY; Chesterfield, MI; Birmingham, England; Giessen, Germany; and Toyohashi, Japan.
Power tools and accessories represent 71% of Black & Decker�s sales; hardware and home improvement, 17%; and fasteners and assembly systems, 12%.
Headquarters: 701 E. Joppa Rd., Towson, MD 21286. Tel: 410 716-3900 Fax 410 716-2933
Web: bdk.com and emhart.com
NYSE Symbol: BDK
CEO: Nolan Archibald, 59
Key fastener executive: Paul Gustafson, executive vice president and president of Fastening & Assembly Group
Founded: 1910
Employees: 22,300
Percentage of revenue from fastener-related products: 12%
Chicago Rivet & Machine
A surprisingly strong automotive industry helped Chicago Rivet & Machine Co. rebound from a bad year in 2001 by posting a 6% boost in 2002 sales to $43 million. Income grew 44% to $2.6 million, while gross margins achieved a 15% gain to $10.59 million.
Chicago Rivet�s fastener segment, which makes up 81% of the company�s revenue, outperformed overall company results, with sales improving 7% to $35 million on increased automotive production. Fastener gross margins improved to 21.1%.
In 2002 Chicago Rivet invested $886,009 in equipment, including $567,000 for new fastener manufacturing machines and $123,000 for quality control and finishing equipment.
Chicago Rivet produces rivets, rivet-setting machines, parts and tooling for the automotive and appliance industries. Chicago Rivet relies primarily on independent sales representatives. As a supplier mainly to domestic automotive and appliance industries, Chicago Rivet�s sales are closely related to U.S. manufacturing activity.
No customer, raw material supplier or competitor dominates. In 1993 Chicago Rivet acquired Textron�s Townsend Automation division, a manufacturer of customized fastener installation and assembly equipment, rivet-setting equipment, lacing hooks and cold-headed studs.
In 1996 Chicago Rivet bought H&L Tool Co. Inc., maker of screw machine products and cold-formed parts for the automotive industry.
Chicago Rivet has plants in Illinois, Iowa, Michigan and Pennsylvania.
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, 67
Investor Relations: John Osterman
Founded: 1927
Employees: 340
Percentage of revenue from fastener-related products: 81%
Danaher
Danaher Corp. had a stellar year in 2002, posting a 21% increase in sales to $4.58 billion at a time when many companies were consolidating operations and eliminating jobs. Likewise, operating profit jumped 40% to $701.1 million. Most of the 2002 gains were related to the February acquisitions of Gilbarco, maker of environmental instrumentation and retail automation products, and Videojet Technologies, a variable product information marker.
Danaher is best known for its Sears Craftsman tools and accessories and Veeder-Root leak-detection systems. In the fastener industry Danaher is known for its Holo-Krome brand. West Granby, CT-based Holo-Krome manufactures fasteners and Allen hex key products.
The tool segment includes Danaher Hand Tool Group, Matco Tools, Jacobs Chuck Mfg., Delta Consolidated Industries, Jacobs Vehicle Systems, Hennessy Industries and hardware and electrical lines of Joslyn Mfg.
The tools and components segment � including fasteners � contributes 26% of revenue, while process & environmental controls add up to 74%.
Brothers Steve Rales and Mitch Rales own about 30% of Danaher stock.
Headquarters: 2099 Pennsylvania Ave. NW, Washington, DC 20006-1813. Tel: 202 828-0850 Fax 202 828-0860
Web: danaher.com
NYSE Symbol: DHR
CEO: Lawrence Culp, 39
Investor Relations: Patrick Allender
Key fastener executive: Steve Sigmon, vice president/fastener business
Founded: 1969
Employees: 29,000
Fastenal
Fastenal Co. called 2002 �a better year than 2001 but not a great one.� This despite posting a sales increase of 10.7% to $905.4 million, and a 7.7% rise in net earnings to $75.5 million. The �Wal-Mart of the Fastener Industry� added 65 new national accounts during the year and purchased two new distribution centers: a 198,000 sq ft facility in Atlanta; and a 62,000 sq ft center in Kitchener, Ontario, that will serve as Fastenal�s first distribution center in Canada. Threaded fasteners accounted for 46% of consolidated sales in 2002.
Fastenal has stores in all 50 states, as well as Canada, Mexico, Puerto Rico and Singapore. The company opened 144 stores during the year, bringing the total to 1,169. Fastenal plans to open 150 to 185 during 2003.
Longtime Fastenal executive Will Oberton replaced company co-founder Robert Kierlin as CEO in December. Kierlin remains chairman of the board. Oberton had been effectively running the company since Kierlin was elected to the Minnesota state senate in 1999.
Fastenal sold its DIY fastener business to the Hillman Group in October, turning a $5.9 million profit from the transaction.
Fastenal sells 169,000 different threaded fasteners and supplies, 67,000 tools, 29,000 metal cutting tool blades, 34,000 types of fluid transfer components and accessories, 10,000 types of material handling and storage products, 5,000 kinds of janitorial and paper products, 10,000 different kinds of electrical supplies, 17,000 welding supplies, 9,000 safety supplies, and 6,000 types of raw materials. Fastenal sells primarily to the construction industry, OEM and MRO markets. No company supplies more than 5% of Fastenal�s purchases.
Headquarters: 2001 Theurer Blvd., Winona, MN 55987. Tel: 507 454-5374 Fax 507 453-8049
Web: fastenal.com
NASDAQ Symbol: FAST
CEO: Will Oberton, 44
Investor Relations: Steve Slaggie
Founded: 1967Employees: 7,108
Percentage of revenue from fastener-related products: 55.6%
Federal Screw Works
Federal Screw Works had a muted performance for the second year in a row, with sales dipping 9.8% in 2002 to $95.5 million. Net earnings slipped 3% to $4.5 million.
Founded in 1917, the fastener manufacturer produces special fasteners, cold formed and machined parts. The company has seven plants in Michigan manufacturing products for use in fluid-power transmission, structural assembly, internal combustion and safety applications. Products include locknuts, bolts, piston pins, bushings and other machined, cold formed or ground metal parts.
About 91% of sales are to the automotive industry, with Ford Motor Company being the largest customer with 35% of sales, and General Motors accounts for 13%. After a four-year hiatus, Federal Screw began supplying parts to DaimlerChrysler during 2002. Much of the Federal Screw production is for OEM specifications. Non-automotive sales are primarily to durable goods manufacturers. Top competitors are Chicago Rivet, MNP and SPS Technologies.
Federal screw invested $7.7 million in equipment and facility expansion in 2002 and estimates capital expenditures of $6.8 million during 2003.
The ZurSchmiede family owns about 30% of Federal Screw stock.
Headquarters: 20229 Nine Mile Rd., St. Clair Shores, MI 48080-1775. Tel: 586 443-4200 Fax 586 443-4220
Web: federalscrew.com
NASDAQ Symbol: FSCR
CEO: Thomas ZurSchmiede, 51
Key fastener executive: John O�Brien, vice president of sales & marketing
Founded: 1917
Employees: 443
Percentage of revenue from fastener-related products: About 90%
General Electric
Since the 2002 acquisition of bankrupt Questron Technologies Inc. � renamed GE Supply Logistics LLC � for $88.7 million, General Electric has established the distributor of fasteners and electronic hardware in a new 82,000 sq ft facility in Irving, TX. The complex houses the company�s headquarters, aerospace distribution center, and an industrial and commercial branch.
GE Supply Logistics president Jason Jones said the Irving facility will help spur growth by increasing capacity for the aerospace industry.
In addition to Jones, GE Supply Logistics is lead by Matt Grim, aerospace; Phil Schweibert, west region; Dan Falmer, east region; Scott Tucker, sales and marketing; Andy Ray, sourcing; Vishwanathan Balasubramanian, operations; Derek Cleghorn, finance; Rany Hoff, quality; Brian Rowland, technology; and Janice Dyer, human resources.
A division of Shelton, CT-based GE Supply, GE Supply Logistics supplies 126,000 line items through 30 warehouses in the U.S. and Mexico. The company has about 400 employees and supplies parts for the aerospace industry as well as commercial and industrial OEM users.
Overall, parent company GE operates 188 plants in the U.S. and Puerto Rico and 191 facilities in 33 other countries around the world.
Headquarters: 3135 Easton Turnpike, Fairfield, CT 06828-0001. Tel: 203 373-2211 Fax 203 373-3131
Web: gesupplylogistics.com
NASDAQ Symbol: GE
CEO: Jeff Immelt, 47
Key fastener executives: Jason Jones, president and general manager, GE Supply Logistics; Matt Grim, head of aerospace; Phil Schwiebert, west region director; Dan Falmer, east region director; Scott Tucker, sales & marketing; Andy Ray, sourcing
Founded: 1892
Employees: 315,000
Honeywell
After the planned 2001 acquisition of Honeywell by General Electric was nixed by European and other regulatory reviews, Honeywell closed about 50 plants and cut its workforce by several thousand in 2002. The conglomerate continued the trend in 2003, most recently by announcing the elimination of 374 more jobs at its Pawtucket, RI, plant and shifting production to China and Mexico.
Honeywell owns the former TriStar Aerospace and the aerospace parts distribution business of Banner Aerospace Inc.
Honeywell is a global supplier of aircraft components and repair services and a manufacturer of controls equipment, specialty chemicals and car care products.
Dallas-based TriStar Aerospace distributes aerospace hardware and provides inventory management to OEMs and aircraft facilities. TriStar Aerospace is a leading distributor of aerospace fasteners, fastening systems and related hardware.
Founded in 1973, TriStar has long-term supply agreements with Boeing, Northrop, Grumman, Bell Helicopter, Gulfstream, United Airlines, British Airways and Federal Express.
TriStar has annual sales of about $200 million from 2,000 customers.
Headquarters: 101 Columbia Rd., Morristown, NJ 07962-2297. Tel: 973 455-2000 Fax 973 455-4807
Web: honeywell.com
NYSE Symbol: HON
CEO: Dave Cote, 50
Investor Relations: Dan Gallagher
Founded: 1985
Employees: 108,000
ITW
Illinois Tool Works Inc. beat analyst predictions that the manufacturer would grow revenues no more than 1% during 2002 by turning in a 2% growth rate to $9. 47 billion.
ITW reported North American engineered fasteners and components operating revenue grew 2.5% to $2.4 billion, while international engineered fasteners and components gained 6% to $1.36 billion.
Within the manufacturing segments, acquisitions accounted for 3% of revenues and currency translation added 1%, offset by a 2% decline in base business revenues.
In October 2002 ITW sold its Precor fitness equipment business for about $180 million.
ITW is a diversified manufacturer of highly engineered components and industrial systems. The company consists of approximately 603 decentralized operations in 44 countries.
Founded in 1912, ITW first manufactured cutting tools at a small plant in Chicago. ITW entered the fastener business in 1923 using a patent on a twisted-tooth lockwasher to start Shakeproof Company in 1923, when Detroit was converting auto bodies from wood to metal door hinges. Fastener involvement expanded with the concept of �preasSEMbling� a washer to a screw. In the early 1950s the Fastex division was formed to produce special stampings and plastic fasteners.
Today ITW manufactures highly engineered fasteners and industrial components and specialty products primarily for the auto, food and construction industries. Brand names include Buildex, Fastex, Ramset/Red Head and Shakeproof.
Fasteners are part of the Engineered Products division, which accounts for 49% of sales and 50% of profits.
Headquarters: 3600 W. Lake Ave., Glenview, IL 60025-5811. Tel: 847 724-7500 Fax 847 657-4392
Web: itw.com
NYSE Symbol: ITW
CEO: James Farrell, 61
Investor Relations: John Brooklier
Founded: 1912
Employees: 48,700
Ivaco
Ivaco Inc. said lower capacity and a shaky U.S. economy held revenues at modest levels. Ivaco reported sales rose 5% to Canadian $937.48 million (US$660.76 million) for 2002 and net earnings of CAD $7.6 million compared to a net loss of CAD $42.44 million in 2001.
Ivaco�s 2002 fabricated steel products segment sales increased 3% to CAD $509.7 million. Operating earnings for fabricated steel fell 13% to CAD $38.5 million last year. Segment earnings were affected by Ifastgroupe running at 80% capacity and difficult U.S. economic conditions.
CEO Paul Ivanier predicted a modest sales increase for the coming year, along with some price increases. Ivanier said the company incurred significant legal costs last year related to recent U.S. antidumping investigations for wire rod.
Fastener operations are IFC Inc. and IFC USA Corp., Ifastgroupe & Company LP, Infasco division, Infasco Nut division, Ingersoll Fasteners division, Vermont Fasteners Manufacturing division and Vermont Fastener Sales Corp.
Best known as a leading North American producer of steel, Montreal-based Ivaco is a major wire rod and fastener manufacturer. Ivaco has production capacity of 400,000 tons per annum of wire products and 200,000 tons of fasteners.
Ifastgroupe introduced value-added products and expanded production capabilities for locknuts, weld nuts, nylon patching and Teflon coating for nuts at Infasco Nut and large-diameter truck wheel bolts.
Nearly 80% of Ivaco�s property, plant and equipment is in Canada, with the remainder in Vermont, New York and Georgia.
Headquarters: Le 2001 McGill College, 770 Rue Sherbrooke ouest, Montreal, Quebec, Canada H3A 1G1. Tel: 514 288-4545 Fax 514 284-9414
Web: ivaco.com
Toronto Symbol: IVA
CEO: Paul Ivanier
Key fastener executives: Mortie Chaikelson, vice president, Infasco; and Charlie Birch, general manager, Ingersoll Fasteners
Employees: 2,000
Kaydon
Kaydon Corp. reported 2002 sales slipped 2% to $279.4 million, with net income totaling $12.2 million, compared to a $4 million loss in 2001.
The company is best known as a bearing system manufacturer for heavy equipment, aerospace, defense and construction industries.
Kaydon was formed in 1983 as a custom-engineered manufacturer of retaining rings, custom rings, metal castings, slip rings, antifriction bearings, bearing systems and components, and filters. Divisions include Parker Hannifin, SKF Industries, Dover Corp., Commercial Intertech Corp., Torrington/Fafmir, Rotek, FAG, EG&G and Electro-Tec Corp.
About 70% of sales come from U.S. aerospace, and military sales comprised about 13.8% of company revenue.
CEO Brian Campbell joined Kaydon in 1998 from fastener manufacturer TriMas Corporation.
Headquarters: 315 Eisenhower Pkwy #300, Ann Arbor, MI 48108-3330. Tel: 734 747-7025 Fax 734 747-6565
Web: kaydon.com
NYSE Symbol: KDN
CEO: Brian Campbell, 62
Founded: 1983
Employees: 1,850
Editor’s Note: The information and statistics in this report have been obtained from sources we believe are reliable but FIN does not warrant the accuracy or completeness. \ �2003 FastenerNews.com