Global Fastener News

FIN Review of Fastener Stocks in 2000

John Wolz

Alcoa
Aluminum giant Alcoa entered the fastener industry with the 2000 acquisition of Cordant Technologies Inc.
Cordant, once known as Morton-Thiokol Corporation, acquired fastener manufacturer Huck International in 1991 as part of an effort to diversify.
Huck products include threaded and nonthreaded fasteners, lock bolts, blind bolts, locknuts, blind rivets and cap screws for aerospace, automotive and construction use.
Huck acquired fastener manufacturer Jacobson Mfg. Co. Inc. in 1998 and Chicago-based Continental/Midland Group in 1999. Continental/Midland manufactures engineered fasteners and fastener systems primarily for the auto industry.
Corporate Office: 425 Sixth Ave., Pittsburgh, PA 15219-1850. Tel: 412 553-4545.
Web: alcoa.com
NYSE Symbol: AA
CEO: Alain Belda
Investor Relations: Charles McLane
Key fastener executives: Bruce Zorich, president, Huck International; Don Busby, president, industrial fasteners; Gary Hourselt, president, aerospace fasteners; Chuck Schultz, vice president, Huck installation systems.
Employees: 107,700

Alleghany Corporation

Alleghany continued its expansion in fastener importing with the 2000 acquisition of Reynolds Fasteners. Three major fastener importers � Gardenbolt International, Heads & Threads and Reynolds � now have been consolidated as Heads & Threads International.
While HTI provides less than 10% of Alleghany�s revenue, the fastener importing division�s earnings rose even though the parent corporation�s earnings slipped.
The higher fastener revenue reflected the acquisition of Reynolds.
Two years ago Heads & Threads was well known in the fastener industry as an importer. Not as well known was its parent company, Alleghany Corporation, which had owned Heads & Threads since 1974. But after the 1998 acquisition of importer Gardenbolt International and Reynolds last year, Alleghany is rapidly becoming known in the industry.
Today HTI has facilities in 19 states.
In addition to fasteners, Alleghany provides title insurance, investment management, reinsurance and industrial minerals.
Alleghany�s history is traced back to the 1916 acquisition of Nickel Plate Railroad by the Van Sweringen brothers. Alleghany has no railroad investments today.
Corporate Office: 375 Park Ave, New York, NY 10152. Tel: 212 752-1356. Fax 212 759-8149.
NYSE Symbol: Y
CEO: John Burns Jr.
Investor Relations: Robert Hart
Key fastener executives: CEO Steve Schonholtz and Mike Wrenn of Heads & Threads International.
Recent Standard & Poor�s Ratings: Fair Value Risk: LowEarn/Div Rank: B+
Value of $10,000 invested five years ago: $11,062

Aviall Inc.
Aviall Inc. is an independent, global distributor of aviation parts and inventory management services to 13,000 general aviation customers and 300 airlines. Aviall sells products from 180 manufacturers.
Most of 2000�s sales increase was due to the addition of serving a Rolls-Royce turbine engine. Gross profit for 2000 increased 16.8% from 1999 to $15.8 million. Expenses rose 11.6%, due to e-commerce initatives.
Aviall management predicts 2001 will �reflect continued stabilization and growth in the Asia-Pacific region�however, continued volatility in Latin America.�
�Commercial airlines in North America and Europe continue to effectively manage their capacity by retiring older aircraft as new aircraft are delivered, thereby limiting growth in demand for replacement parts.�
Headquarters: 2075 Diplomat Dr., Dallas, TX 75234-8999. Tel: 972 406-2000 or 800 284-2551. Fax 972 406-2071.
Web: aviall.com
NYSE Symbol: AVL
CEO: Paul Fulchino
Investor Relations: David Leedy
Employees: 739
Percentage of revenue from fastener-related products: 25%

Barnes Group
In 2000 Barnes Group Inc. acquired Curtis Industries Inc., which it combined with Barnes� Bowman Distribution to form Barnes Distribution. Mayfield Heights, OH-based Curtis distributes MRO supplies and security products for the industrial and automotive markets.
Foreign sales were up 27% and overall sales up 19% for 2000.
Barnes also acquired UK-based Euro Stock Springs & Components Ltd., Kratz-Wilde Machine Company and Apex Manufacturing. As 2001 began Barnes acquired spring distributor Euro Stock Springs & Components Ltd. of Redditch, UK.
Barnes is an international manufacturer and distributor of precision metal parts and industrial supplies.
Barnes has three separate businesses: Associated Spring (32% of revenues) produces and distributes custom springs and other close-tolerance engineered metal components; Bowman Distribution (47%) handles MRO products, including fasteners, for industrial, heavy equipment and transportation markets; Barnes Aerospace (20%) produces precision machined assemblies and refurbishes jet engine components.
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
Investor Relations: Phillip Penn
Key Fastener Executives: Leonard Carlucci, president, Associated Spring; Keith Drewett, president, Barnes Distribution.
Employees: 5,700
Recent Standard & Poor�s Ratings: Risk: Low
Earn/Div Rank: B+

Black & Decker
Black & Decker is best known for its power tools and such household brand names as PricePfister, Kwikset and Dustbuster.
Within the fastener industry Black & Decker�s brand names are Emhart Fastening Teknologies, Emhart, 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.
The fastening & assembly systems 2000 revenue totaled $518 million, up from $496.2 million for 1999 and $461.7 million for 1998.
Sales to unaffiliated customers increased 4% over 1999, due to the worldwide industrial market and the automotive sector outside the U.S.
At 16.6% fastening profit for 2000 was at approximately the same level as the year before. Profits totaled $86 million.
No one fastener product accounted for more than 10% of the sales.
Black & Decker�s principal fastener markets are automotive, transportation, construction, electronics, aerospace, machine tool and appliance industries.
Founded in 1910, Black & Decker has plants in 14 countries, and its products are sold in more than 100 countries.
Fastener production facilities are in Danbury, CT; Montpelier, IN; Campbellsville and Hopkinsville, KY; Mt. Clemens, MI; Brimingham, England; Giessen, Germany; and Toyohashi, Japan.
Power tools and accessories represent 65% of Black & Decker�s sales; building products, 19%; and fasteners and assembly systems, 10%.
Headquarters: 701 E. Joppa Rd., Towson, MD 21286. Tel: 410 716-3900 Fax 410 716-2933.
Web: blackanddecker.com and emhart.com
NYSE Symbol: BDK
CEO: Nolan Archibald
Investor Relations: Robert Hunter
Key fastener executive: Paul Gustafson, executive vice president and president of Fastening & Assembly Group.
Employees: 21,800
Percentage of revenue from fastener-related products: 10%
Value of $10,000 invested 5 years ago: $12,359
Recent Standard & Poor�s Ratings: Neutral since November 1999. Fair Value 41 3/8 Risk: AverageEarn/Div Rank: B-

Chicago Rivet & Machine
Naperville, IL-based Chicago Rivet & Machine produces rivets, rivet-setting machines, parts and tooling for the automotive and appliance industries.
Net income dropped from $3.5 million for 1999 to $2.7 million in 2000.
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. business activity.
No customer, raw material supplier or competitor dominates. Founded in 1927, Chicago Rivet acquired Textron�s Townsend Automation division in 1993, which manufactures customized fastener installation and assembly equipment, rivet-setting equipment, lacing hooks and cold-headed studs. In 1996 Chicago Rivet acquired H&L Tool Co. Inc., a manufacturer 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.
ASE Symbol: CVR
CEO: John Morrissey
Investor Relations: John Osterman
Employees: 390
Percentage of revenue from fastener-related products: 60%
Recent Standard & Poor�s Ratings: Risk: AverageEarn/Div Rank: B+

Danaher Corporation
Danaher Corp. started the year with new management as Lawrence Culp Jr. took over as chief executive.
Known in the fastener industry for its Holo-Krome brand, Danaher Corporation manufactures tools � including Sears Craftsman hand tools � environmental controls and telecommunications equipment.
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 56% of revenue, while process & environmental controls add up to 44%.
Holo-Krome manufactures fasteners and Allen hex key products and is headquartered in West Granby, CT.
In 2000 Danaher acquired electronic motion control equipment manufacturer Kollmorgen Corp.
Headquarters: 1250 24th St. NW, Washington, DC 20037. Tel: 202 828-0850 Fax 202 828-0860.
Web: danaher.com
NYSE Symbol: DHR
CEO: Lawrence Culp
Investor Relations: P.W. Allender
Key fastener executives: Steve Sigmon, vice president/fastener business.
Employees: 19,000
S&P value of $10,000 invested 5 years ago: $40,269
Recent Standard & Poor�s Ratings: Fair Value 64.75 Risk: Low Earn/Div Rank: A-

The Eastern Company
The Eastern Company set a sales record in 2000 with an 18% increase over 1999. While many companies reported slow 4th quarters, Eastern sales jumped 35%.
Eastern is a 140-year-old manufacturer of proprietary locks, latches, fasteners, coin collection and smart card products and other security hardware for industrial and commercial customers. Eastern has eight manufacturing locations in the U.S.A., Canada, Mexico and the Pacific Rim.
Brands include Frazier & Jones, Illinois Lock, Eberhard Mfg., World Lock Co., CCL Security Products, Sesamee padlocks and Presto Lock.
Eastern sells to OEMs and distributors.
Eastern made two acquisitions in the past year in the Industrial Hardware segment.
CEO Leonard Leganza said Eastern will continue to look for acquisitions. �In addition to our ongoing internal initiatives we are continuing to search for other opportunities that will enhance and build on the many niche markets which we serve,� Leganza said.
Headquarters: 112 Bridge St., P.O. Box 460, Naugatuck, CT 06770. Tel: 203 729-2255. Fax 203 723-8653.
Web: easterncompany.com
ASE Symbol: EML
CEO: Leonard Leganza
Investor Relations: John Dibble
Employees: 500
Recent Standard & Poor�s Ratings: Risk: LowEarn/Div Rank: B+

Fairchild Corporation
Fairchild Corporation spent 1999 closing major acquisitions and 2000 integrating the fastener businesses.
Fairchild merged six U.S. plants into four and merged corporate offices and salesforces.
�We are no longer two separate companies,� president Eric Steiner said. �We have united into a single company, with one corporate identity and one culture. We have improved our performance while reducing production costs, through synergistic savings. Now we are ready to reap the benefits of our efforts.�
Steiner said Fairchild survived a downturn in the aerospace market by increasing global market share.
Early in 1999 Fairchild closed deals acquiring the remaining 15% of shares of Banner Aerospace it did not own and acquired fastener manufacturer Kaynar Technologies, French self-locking nut and specialty threaded fastener manufacturer SNEP and French specialty fittings manufacturer Technico.
Fairchild�s customers include Boeing, Airbus, Bombardier, Delta Air Lines and U.S. Airways. Its principal businesses are aerospace fasteners and aerospace distribution through Banner Aerospace.
Fairchild has divested much of its non-fastener business.
Fairchild has manufacturing operations in the U.S., France, Germany, Hungary, Australia, Portugal and the UK.
CEO Jeffrey Steiner owns 43% of Fairchild stock.
Headquarters: 45025 Aviation Dr. #400, Dulles, VA 20166. Tel: 703 478-5800. Fax 703 478-5767.
Web: fairchildcorp.com
NYSE Symbol: FA
CEO: Jeffrey Steiner
Investor Relations: Donald Miller
Key fastener executives: Robert Edwards, COO of U.S. operations and Recoil in Australia and Marson Corporation; Robert Marchetti, senior vice president of worldwide sales & marketing, is responsible for Fairchild Fasteners Direct organizations in Aichach, Germany; Chatsworth, CA; and Paris.
Employees: 4,900
Recent Standard & Poor�s Ratings: Fair Value N/A Risk: Average Earn/Div Rank: B-

Fastenal Co.
Fastenal Company reported net sales for 2000 increased 22.4% over 1999.
Net sales for the year ended December 31, 2000, totaled $745,740,000. Net earnings grew 23.3% to $80,730,000.
Fourth quarter 2000 sales totaled $187,961,000, a 21% increase over the same period of 1999. Net earnings grew 19% to $18,907,000.
During the fourth quarter Winona, MN-based Fastenal opened 36 new sites, bringing the total number of sites to 897. At the end of the quarter 828 were operating as traditional Fastenal stores, and 69 were operating as satellite stores.
There were 4,356 site employees as of December 31, 2000, an 18.7% increase over the end of 1999.
Fastenal management reported 23.3% growth in daily sales for October 2000 over the same month in 1999.
�As the quarter progressed we began to see a weakening in the overall industrial economy,� reads a company statement. �As a result of this weakening, our growth in daily sales dropped to 21.0% in November.�
Severe weather during December in the northern and central United States as well as many parts of Canada slowed construction, some general manufacturing and Fastenal�s ability to distribute products. The daily growth in sales in December dropped to 17.8%.
December sales also were impacted by the weakening of the Canadian dollar.
�As we begin 2001 we are very optimistic about the benefits to be derived from our direct-mailing campaign. This campaign consists of mailing approximately 500,000 pieces of marketing material per month in 2001 to current and prospective customers, a tenfold increase over the volume of direct mailings in 1999. The funding for this initiative came from our suppliers who are directly involved in the program.�
Headquarters 2001 Theurer Blvd., Winona, MN 55987. Tel: 507 454-5374. Fax 507 453-8049.
Web: Fastenal.com
NASDAQ Symbol: FAST
CEO: Robert Kierlin
Investor Relations: Steve Slaggie
Founded: 1967
Employees: 5,493
Percentage of revenue from fastener-related products: 55%
Fastener-related products: Distributes 59,000 items.
Recent Standard & Poor�s Ratings:
Fair Value 70 1/8 Risk: AverageEarn/Div Rank: A+

Federal Screw Works
While many automotive suppliers reported sales declines as 2000 progressed, Federal Screw Works ended the year with higher sales, a 19.5% growth in net income and 9.4% increase in employees.
Federal Screw Works, founded in 1919, manufactures locknuts, bolts, piston pins, bushings and other machined, cold formed or ground metal parts. Nearly 90% of sales are to the automotive industry, with Ford Motor Company being the largest customer with 40% of sales. General Motors accounts for 15% of sales. Nonautomotive sales are primarily to durable goods manufacturers.
Federal Screw Works has six plants in southern Michigan.
The ZurSchmiede family has owned about 36% of the stock for decades.
Headquarters: 20229 Nine Mile Rd., St. Clair Shores, MI 48080-1775. Tel: 810 443-4222. Fax 810 443-4220.
Web: federalscrew.com
NASDAQ Symbol: FSCR
CEO: W.T. ZurSchmiede Jr.
Key fastener executives: J.M. O�Brien, vice president of sales & marketing.
Employees: 474
Percentage of revenue from fastener-related products: 90%

Honeywell International Inc.
General Electric announced plans to acquire Honeywell International Inc., but European and other regulatory reviews are casting doubt on the combination.
Jet engine maker and service provider GE wants Honeywell for its cockpit controls manufacturing and other strategic products.
United Technologies also tried to acquire Honeywell during 2000.
If combined into Fairfield, CT-based General Electric, fasteners would be a tiny portion of the corporation. 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, but the top 10 total 59% of sales.
Headquarters: 101 Columbia Rd., Morristown, NJ 07962-2245. Tel: 973 455-2000.
Web: honeywell.com
NYSE Symbol: HON
CEO: Michael Bonsignore
Investor Relations: James Colby
Employees: 127,000
Recent Standard & Poor�s Ratings:
Fair Value 59.5 Risk: Low Earn/Div Rank: B+

Illinois Tool Works
Illinois Tool Works Inc. reported a 1% decline in total company revenues for the three months ended January 31, 2001. The revenue decline consisted of 9% growth from acquisitions, offset by a 4% decline from base businesses and a 6% decrease due to the impact of currency translation.
ITW reported North American engineered products were down 3%, but international engineered products gained 22%.
ITW is a $10 billion diversified manufacturer of highly engineered components and industrial systems. The company consists of approximately 600 decentralized operations in 43 countries and employs 55,300 people.
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 autobodies 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. The 2000 North American revenues increased 7% from 1999 to $3,184 million. International engineered products rose 15% to $1,516 million.
The North American margin was 19.2% for 2000 and international was 10.1%.
Headquarters: 3600 W. Lake Ave., Glenview, IL 60025-5811. Tel: 847 724-7500. Fax 847 657-4392.
Web: itwbrands.com
NYSE Symbol: ITW
CEO: James Farrell
Investor Relations: John Brooklier
Employees: 55,300
Recent Standard & Poor�s Ratings:
Fair Value 66 3/8 Risk: Low Earn/Div Rank: A+

Industrial Holdings Inc.
Industrial Holdings Inc. has acquired several well-known fastener companies in the past decade, but in the next year the Houston-based corporation hopes to specialize in the energy industry and divest itself of some key fastener holdings. And the IHI name may disappear and be replaced with T-3 Energy Services Inc.
IHI put its engineered products group up for sale, including Orbitform, American Rivet, Ideal and Landreth. The group manufactures fasteners and specialty metal components for OEMs in home furnishings, automotive and electrical components.
Ameritech, Lonestar Screw, Walker Bolt and GHX are in the stud bolt & gasket group. A&B Bolt is in the energy group.
IHI also plans to merge with privately held T-3 Energy Services Inc.
Current T-3 shareholders will acquire control of IHI. T-3�s largest shareholder, First Reserve Fund VIII L.P., will invest an estimated $24.6 million and will work with IHI to refinance the combined company�s debt into a long-term credit facility.
The merger is subject to customary regulatory approvals and is scheduled to close in the third quarter.
CEO Robert Cone said the combined company �will serve the Gulf of Mexico market, providing oilfield manufacturing and aftermarket repair services to a diverse customer base.�
Headquarters: 7135 Ardmore, Houston, TX 77054. Tel: 713 747-1025. Fax 713 749-9642.
Web: industrialholdings.com
NASDAQ Symbol: IHII
CEO: Robert Cone
Investor Relations: Debbie Bonefas
Key fastener executives: Tom Landreth, CTO for engineered products; Mike Shirkey, president of engineered products; Dan Ahuero, interim president, stud bolt & gasket group; Tim Malone, president of Walker Bolt; and Judy Jandl, president of LoneStar.
Employees: 2,200
Percentage of revenue from fastener-related products: 51%

Ivaco
Ivaco proudly proclaimed 2000 a turnaround year, with the corporation showing profit in 2000 instead of losses.
�Ivaco is among the very few steel producers in North America that had profitable operations during the fourth quarter of 2000,� CEO Paul Ivanier observed. He attributed the improved Ivaco performance to �the benefits of the strategic restructuring and investment initiatives undertaken during the last five years.�
Tempering Ivaco sales was an economic slowdown, particularly in its standard fasteners for the automotive, truck and agriculture markets.
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 350,000 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. The Ingersoll and Vermont Fastener plants installed new production equipment during 2000.
The Distributor Sales division of Ifastgroupe implemented new integrated software for the entire distribution channel.
Sivaco Wire Group operated at capacity, and both the Marieville, Quebec, and Newman, GA, plants are being expanded.
A total of 79% of Ivaco�s property, plant, and equipment is in Canada, and 21% is in the U.S.
Ivaco produces wire rod at Ivaco Rolling Mills for Sivaco Wire Group. Ivaco also owns Ingersoll Machine & Tool, 50%-owned IPEX plastic pipe products, and automotive and industrial products distributor Docap.
Ivaco reported 68% of 2000 sales were to the U.S., 29% to Canada and 3% overseas. Fabricated steel products, including fasteners, wire and wire products, totaled $567.3 million for 2000, up from 1999�s $555.9 million.
Wire rod sales totaled $465.8 million in 2000, up from $420.4 million for 1999.
�Prospects for 2001 depend primarily on how the North American economy performs during the year,� Ivanier commented. �We expect that once the reduction of inventories at the customer level will have run its course, which we believe will be during the second quarter, the North American economy will start to accelerate again.
Headquarters: Place Mercantile, 770 Rue Sherbrooke ouest, Montreal, Quebec, Canada H3A 1G1. Tel: 514 288-4545. Fax 514 284-9429.
Web: ivaco.com
Toronto & Montreal Symbol: IVA.A
CEO: Paul Ivanier
Key fastener executives: Mortie Chaikelson, vice president, Infasco; and Glenn Snowberger, general manager, Ingersoll Fasteners.
Employees: 5,500
Percentage of revenue from fastener-related products: 45%

Kaydon Corp.
CEO Brian Campbell joined Kaydon in 1998 from fastener manufacturer TriMas Corporation. There has been a housecleaning of managers along with acquisitions, new productivity programs and bonus plans implemented to boost Kaydon performance.
Kaydon Corp. was formed in 1983 as a custom-engineered manufacturer of retaining rings, custom rings, metal castings, sling 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 Litton Poly-Scientific.
Headquarters: 315 Eisenhower Pkwy. #300, Ann Arbor, MI 48108-3330. Tel: 734 747-7025.
Web: kaydon.com
NYSE Symbol: KDN
CEO: Brian Campbell
Investor Relations: Shelley Schwemly
Employees: 2,362
Recent Standard & Poor�s Ratings:
Fair Value 30 1/2 Risk: Low Earn/Div Rank: A

Lawson Products Inc.
Lawson Products Inc. expanded its fastener business at the beginning of 2001 with the acquisition of the North American Industrial Products and Kent Automotive divisions of Premier Farnell plc.
Lawson distributes replacement fasteners, fittings and other parts for more than 216,000 MRO capital equipment, buildings and automobile customers and OEMs. Lawson is broadening its markets with a CD-ROM catalog, which allows customers to order using a laptop computer and compact disk.
Founded in 1952, Lawson purchases most products in bulk and repackages in smaller quantities, and 90% of the products are sold with Lawson�s own label.
In 1999 Lawson, through its ACS/Simco subsidiary, acquired SunSource Inc.�s Inventory Management Company Inc. and its Hillman Industrial division. The divisions comprised the OEM fastener business of SunSource.
Fasteners totaled 45% of 1998 net sales; industrial supplies 49%; and automotive and equipment maintenance parts 5%.
Lawson has 16 distribution centers and a manufacturing plant � Automatic Screw Machine Products Co. of Decatur, AL � and 1,775 independent sales reps in North America.
Founder Sidney Port and his wife own about 30% of the stock.
Headquarters: 1666 E. Touhy Ave., Des Plaines, IL 60018. Tel: 847 827-9666. Fax 847 297-2037.
Web: lawsonproducts.com
NASDAQ Symbol: LAWS
CEO: Robert Washlow
Investor Relations: Joseph Pawlick
Founded: 1952
Employees: 1,190
Percentage of revenue from fastener-related products: 45%
Recent Standard & Poor�s Ratings: Risk: Low Earn/Div Rank: A-

Nucor Corporation
U.S. steelmakers struggled in 2000, though Nucor continued its expansion with opening new steel plants.
Nucor is best known as the largest U.S. minimill producer, but the corporation also has two fastener plants.
Nucor entered the steel fastener business in 1986 when it opened a $25 million plant in St. Joe, IN. The facility produces hex-head cap screws, hex bolts and socket-head cap screws. Nucor Fastener opened a second plant in Conway, AR, in late 1995.
Nucor fasteners are used in automotive, machine tool, farm implement, construction and military applications.
Interim CEO David Aycock, a Nucor director since 1971, retired in early 2001, and a new management team is now led by Daniel Dimicco.
Headquarters: 2100 Rexford Rd., Charlotte, NC 28211. Tel: 704 366-7000. Fax 704 362-4208.
Web: nucor.com
NYSE Symbol: NUE
CEO: Daniel Dimicco
Key fastener executives: Mike Parrish, executive vice president, and fastener general manager Jerry DeMars.
Employees: 7,500
Recent Standard & Poor�s Ratings: Fair Value 65.38 Risk: LowEarn/Div Rank: A-

Park-Ohio
Sales were up, but Park-Ohio Holdings Corp. was one of several fastener companies with dropping stock price for 2000.
Park-Ohio, which supplies logistics services for 175,000 types of fasteners and related industrial components and manufactures engineered products for OEMs, has 34 manufacturing sites and 55 logistics warehouses in North America and England.
Park-Ohio entered the fastener business in 1995 by acquiring a historic name in the industry, RB&W. With the added acquisitions of Arden Industrial Products Inc., Arcon Fastener Corporation and screw machine products manufacturer Delo Screw Products Co. in 1997, and Direct Fasteners of Ontario, Canada, and Gateway Industrial Supply in 1998, the industrial fastener logistics business became a majority of Park-Ohio revenue.
In 1999 Park-Ohio acquired northern NJ-based Columbia Nut & Bolt Corp.
Park-Ohio has grown rapidly, with sales going from $67 million in 1992 to $754,7 million for 2000 from both internal growth and acquisitions.
Ford accounts for 13% of sales.
CEO Edward Crawford owns 26% of Park-Ohio stock.
Headquarters: 23000 Euclid Ave., Cleveland, OH 44117. Tel: 216 692-7200 Fax 216 692-7174.
NASDAQ Symbol: PKOH
CEO: Edward Crawford
Key fastener executives: Andrew Arena, president, logistics.
Employees: 4,000
Percentage of revenue from fastener-related products: 60+%
Recent Standard & Poor�s Ratings: Fair Value: 16 Risk: HighEarn/Div Rank: B-

H. Paulin & Co. Ltd.
Founded by Harry Paulin in 1920, Paulin manufactures and distributes bolts, nuts, screws, industrial fasteners, fluid system components, metal stampings, automotive parts and screw machine components. Paulin supplies 40,000 standard fasteners and manufactures custom cold headed products, metal stampings, screw machine products, self-locking fasteners and custom parts for the automotive, agricultural, electronic and appliance industries. Paulin also produces stainless and nonferrous fasteners for the marine, pulp and paper, chemical, and processing industries.
Trademarks include Paulin, Papco, Easy-Spot, Work Savers, Loxxon, Pie-a-Pae, Uni-Bolt, Uni-Nut, Pro-Tip, Contractor Quality and Dominion.
Paulin has warehouses in Moncton, New Brunswick, Montreal, Winnipeg, Edmonton, Vancouver and Cleveland, OH.
Headquarters: 55 Milne Ave., Scarborough, Ontario, Canada. Tel: 416 694-3351 Fax 416 694-1869.
Web: ecommercemarket.com/paulin/
Toronto Symbol: PAP.A-T
CEO: Arthur Paulin

PennEngineering
Penn Engineering & Manufacturing Corp. changed its name to PennEngineering during 2000 and reorganized its business units.
Fasteners and Pemserter presses are now in the Pem Fastening Systems unit, rivet nut fasteners are in Atlas Engineering, distribution and logistics are in Arconix Group, and DC motors are in Pittman.
Penn acquired privately owned Atlas Engineering Inc. for $4 million in April. Atlas is a Tallmadge, OH, manufacturer of blind threaded rivet nuts.
Founded in 1942 by K.A. Swanstrom, Penn Engineering produces self-clinching fasteners, fastener installation equipment, miniature DC electric motors and other metal products. Brand names include PEM self-clinching fasteners, SI inserts for plastics and Pemserter automatic fastener installation equipment.
PennEngineering has locations in North Carolina, Virginia, Europe and Asia and independent distribution facilities in more than 40 countries.
Fastener sales totaled $47.4 million in 1999.
Penn acquired California-based distributor R.C. Dudek & Company Inc. in 1999. Dudek had been a Penn distributor on the West Coast since 1952 and had sales of $31 million in 1998. Penn products accounted for 85% of Dudek�s sales.
At the beginning of 2000 Penn formed the Arconix Group to distribute PEM fastening products and other fasteners worldwide. Arconix consolidated Penn�s sales, marketing and warehousing operations in England and Singapore with R.C. Dudek. Penn also acquired Stickscrew system manufacturer MicroAssembly Systems Inc. and Rivnut Engineered Products Inc. during 1999.
The Swanstrom family owns more than half the class A common stock.
Headquarters: 5190 Old Easton Rd., P.O. Box 1000, Danboro, PA 18916-1000. Tel: 215 766-8853 or 800 237-4736. Fax 215 766-3633.
Web: penn-eng.com
NYSE Symbol: PNN (non-voting) and PNN.A (voting)
CEO: Kenneth Swanstrom
Investor Relations: CFO Mark Simon
Key fastener executives: Francis Wilson, president, Pem Fastening Systems; Paul Perry, Atlas; and Alan Kay, Arconix.
Employees: 1,400
Percentage of revenue from fastener-related products: 25%
Fastener-related products: Self-clinching fasteners
Recent Standard & Poor�s Ratings: Fair Value: 16 Risk: HighEarn/Div Rank: B-

Pentacon Inc.
Pentacon made numerous announcements of new customers, new technology and a 4% increase in revenue during 2000, but nothing could spur the stock price.
In an interview with FIN last fall, then-CEO Mark Baldwin attributed profit troubles to the aerospace segment. Aerospace was 48% of 1999 revenue.
�It�s the market, not Pentacon,� Baldwin said.
Aerospace revenues for 2000 declined 6% from 1999. Industrial group sales rose 13%, and operating income was 28% over 1999.
Baldwin was optimistic about 2001 as with new contracts, a new management team and staffing reduced by 40%.
Shares opened at $10 in the March 1998 IPO and rose as high as $14 but were below $1 most of 2000. Stock prices during 1999 had ranged from $2 to $6.
The low stock price and high cost of funds make it difficult to acquire more distribution companies.
Pentacon now has 34 facilities in 17 states.
Pentacon officials believe the blending of cultures of the acquisitions is proceeding on schedule.
Headquarters: 10375 Richmond Ave. #700, Houston, TX 77042. Tel: 713 860-1000. Fax 713 860-1001 (The headquarters will move to Chatsworth, CA, during 2001).
Web: pentacon-inc.com
NYSE Symbol: JIT
CEO: Robert Ruck
Investor Relations: James Jackson
Key fastener executives: Jack Fatica, vice chair, and Jeff Fatica, president/industrial group.
Employees: 750
Percentage of revenue from fastener-related and �C� products: 100%
Recent Standard & Poor�s Ratings: Fair Value: N/A Risk: N/AEarn/Div Rank: B-

Precision Castparts
PCC Specialty Products Inc. � the fastener machinery tooling group of Precision Castparts � signed a 50/50 joint venture agreement with Kadimi Tool Manufacturing Company Pvt. Ltd. to manufacture thread rolling dies and header tooling under technical collaboration with Reed-Rico and Astro Punch at Kadimi�s Gurgaon, India, plant.
PCC Specialty Products is based at 18 Industrial Dr., Holden, MA 01520-1895.
During 2000 PCC Specialty Products acquired privately held Fastener Engineers Group Inc. and Lewis Machine. The Rockford, IL-based group manufactures wire-processing equipment.
Precision Castpart�s corporate office is in Portland, OR. The corporation entered the fastener-related business with the acquisition of its two tooling companies, Reed-Rico in 1995 and Astro Punch in 1996.
Just over half of corporate sales come from aerospace, followed by nearly a quarter from the industrial market, 8% energy, 7% industrial gas turbines, 6% automotive.
PCC supplies structural and airfoil components for the aircraft engine and industrial gas turbine industries and has diversified into non-aerospace businesses.
Headquarters: 4650 SW Macadam Ave., Portland, OR 97201-4254. Tel: 503 417-4800. Fax 503 417-4817.
Web: precast.com
NYSE Symbol: PCP
CEO: William McCormick
Investor Relations: Dwight Weber
Key fastener executives: Greg Delaney, president, PCC Specialty Products Inc.
Employees: 12,335
Percentage of revenue from fastener-related products: Under 10%
Fastener-related products: Manufactures cold-forming header and threader tools and threader machines for the fastener industry.
Recent Standard & Poor�s Ratings: Bearish since November. Fair Value 47 1/2 Risk: High Earn/Div Rank: A-

Premier Farnell plc
Premier Farnell appears to be withdrawing from the North American fastener distribution business with the sale of its Industrial Products and Kent Automotive divisions announced at the beginning of 2001.
Premier Farnell distributes 250,000 items from 1,000 manufacturers. Much of its business is distribution via catalog in the U.S. Premier Farnell also has been active in Europe, Australia and the UK and is growing in Asia and South America.
Premier Farnell is UK based and distributes fasteners and electronic components in Europe, Asia Pacific and UK.
The company was formed by the acquisition of Premier Industrial of the U.S. by Farnell Electronics (UK) in the mid 1990s.
Premier Farnell distributes electronic items for appliance replacement parts. The Industrial products & manufacturing segment distributes fasteners, automotive trade supplies, industrial consumable, brass, TPC wire and other products.
Headquarters: U.S.: 4500 Euclid Ave., P.O. Box 94884, Cleveland, OH 44101-4884. Tel: 216 361-4375. Fax 216 361-7454.
Web: premierfarnell.com
NASDAQ Symbol: PFP
CEO: John Hirst
Investor Relations: Victoria Scarth
Employees: 5,776
Merrill Lynch ratings: Investment Risk: B/Average Intermediate Term Rating: 2/Accumulate Long-Term Rating: 3/Neutral

Questron Technology Inc.
How long the Questron Technology Inc. name will be a stock is uncertain, with NASDAQ deciding whether it be delisted and speculation building that Questron is a prime acquisition candidate.
Questron appealed the NASDAQ staff determination on December 21 indicating the company fails to meet minimum bid price requirements. Questron also applied for listing on the American Stock Exchange in case it is delisted by NASDAQ.
During 2000 Questron Technology Inc. acquired Tyler, TX-based B&G Supply Company Inc. B&G provides inventory logistics and such services as precision machining of fabricated parts primarily for Texas OEMs. Annual revenue is about $2.5 million.
Questron was the most active fastener distribution consolidator in 1999 and started 2000 with the acquisition of Texas-based B&G Supply Company.
Questron also purchased Franklin Square, NY-based R.S.D. Sales Company Inc.
Despite the increase in sales and several newly announced contracts, Questron�s stock price struggled.
Questron provides fastener and other �C� items and inventory logistics management to OEMs.
CEO Dominic Polimeni and investor Joan Gubitosi own 33% of Questron.
Headquarters: 6400 Congress Ave. #200A, Boca Raton, FL 33487. Tel: 561 241-5251. Fax 561 241-2866.
Web: questrontechnology.com
NASDAQ (Small Cap) Symbol: QUST
CEO: Dominic Polimeni
Investor Relations: Susan Wright Tel: 561 241-5251.
Key fastener executives: Regional vice presidents: Daniel Falmer, Eastern; Philip Schwiebert, Western; Raul Tordres Midwest; and COO Doug Zadow.

R&B Inc.
R&B Inc. reduced its debt by $30 million in 2000 as part of a downsizing program. CEO Richard Berman reported R&B eliminated �thousands of unproductive products from our inventories, and focused our new product development and investment on our core business of hard-to-find parts and fasteners.�
Selling and administrative expenses were reduced by more than $8 million.
R&B still plans to cut inventory. Limited retail shelf space will restrict new product introductions �to those companies with the best programs offering the highest return on investment.�
Berman noted that new car quality, warranties and parts proliferation �continue to take demand out of the aftermarket.�
R&B supplies fasteners and household hardware to the automotive aftermarket, home center and general merchandise markets.
R&B designs, packages and markets 60,000 automotive replacement parts and fasteners. R&B�s customers are primarily retailers and wholesalers.
Hardware fastener brands include Dorman and Pik-A-Nut. R&B sells under its own brand names and customer private labels.
Customers include AutoZone, Pep Boys, Advance, NAPA, Carquest, AutoValue, Home Depot, Lowe�s, salvage yards and local independent wholesalers.
Headquarters: 3400 E. Walnut St., Colmar, PA 18915. Tel: 215 997-1800. Fax 215 997-7968.
Web: rbinc.com
NASDAQ Symbol: RBIN
CEO: Richard Berman
Investor Relations: M. Barton
Founded: 1978
Employees: 1.225
Recent Standard & Poor�s Ratings:
Risk: Average Earn/Div Rank: B

SPS Technologies
During 2000 SPS Technologies acquired Burbank CA-based Avibank Mfg. Inc. for $115.8 million. Avibank manufactures latches, hold-open rods, quick-release pins, structural panel fasteners, self-retaining bolts and expandable fasteners for aerospace markets. Sales were about $77.5 million in 1999. The AVK Industrial Products division manufactures threaded inserts for the automotive and industrial markets.
SPS also acquired Milan, Italy-based ULMA S.p.A. Ulma manufactures flat, planetary and cylindrical thread roll dies used in metal forming. Sales for 1999 were approximately $5.2 million.
SPS Technologies, founded in 1903 as Standard Pressed Steel Co., manufactures high-strength fastening and assembly systems, superalloys and magnetic materials.
SPS is seeking to maintain its aerospace business, expand fastener business through acquisitions and grow its materials segment.
Aerospace fasteners represent 36% of SPS revenues, automotive fasteners 17%, and industrial fasteners 12%.
Fastener business includes ESNA nuts.
The aerospace fastener group operates three plants, including the world�s largest in Jenkintown, PA, and facilities in England, Canada, Ireland, Brazil and Japan.
SPS� Unbrako Engineered Fasteners specializes in custom fastening systems and has facilities in Australia, Brazil, Canada, China, England, Ireland, Japan, Mexico and Singapore.
Customers include Boeing and Airbus, and aerospace fasteners account for about a third of revenues.
At the beginning of 2000 SPS announced plans to acquire Burbank, CA-based Avibank Mfg. Inc.
A group led by investor Mario Gabelli owns 26.29% of SPS stock.
Headquarters: Two Pitcairn Place, 165 Township Line Rd., Jenkintown, PA 19046. Tel: 215 517-2000. Fax 215 517-2032.
Web: spstech.com
NYSE Symbol: ST
CEO: Charles Grigg
Investor Relations: Margaret Zminda
Employees: 6,268
Percentage of revenue from fastener-related products: 60%
Fastener-related products: Manufactures cutting tools for the fastener industry.
Recent Standard & Poor�s Ratings: Fair Value 68.25 Risk: Low Earn/Div Rank: B-

SunSource Inc.
After selling part of its fastener business in 1999, SunSource acquired the Sharon-Philstone division of Pawtucket Fasteners LP in 2000 for $5.8 million. Sharon-Philstone distributes fasteners to the retail hardware industry.
Sharon-Philstone was then merged with Hillman Group, a SunSource subsidiary.
G-C Sun Holdings LP, a partnership between Glencoe Capital LLC and SunSource, acquired Brampton Fastener Co Ltd. Brafasco operates 17 stores in the Toronto, Canada market. G-C Sun was formed earlier in 2000 to acquire fastener and MRO distributor Kar Products Inc. Kar provides personalized small parts to low-volume customers.
During 1999 SunSource sold its SunSource Inventory Management Company Inc. and its Hillman Industrial Division to Lawson Products. The divisions comprised the OEM fastener business of SunSource.
SunSource retained its retail division, Hillman Hardware, which distributes fasteners, anchors, letters, numbers, signs, keys, rope, chain, cable accessories and other specialty goods to hardware and home center stores.
Headquarters: 3000 One Logan Sq., Philadelphia, PA 19103. Tel: 215 282-1290. Fax 215 282-1309.
Web: sundist.com
NYSE Symbol: SDP
CEO: Maurice Andrien Jr.
Investor Relations: Joseph Corvino
Employees: 4,010
Percentage of revenue from fastener-related products: 20%
Recent Standard & Poor�s Ratings: Fair Value 4.35 Risk: Low

Textron Inc.
Joachim Hirsch succeeded Jack Sights as the CEO of Textron Fastening Systems. Sights moved over to be CEO of Textron Automotive. Hirsch had been CEO of Germany-based Kautex Textron.
Textron�s commercial and supply chain groups were combined, and the unit is headed by William Barker. Together the revenues are projected at $900 million.
Textron Fastening caught the attention of the fastener industry with its 1999 acquisition of Flexalloy Inc. Flexalloy�s automotive customer list and distribution experience positioned Textron for more automotive business as automakers cut the number of fastener suppliers and look for logistics services.
During 2000 Textron Fastening acquired Advantage Molding & Decorating to expand its telecommunications capabilities. Advantage supplies injection molded parts, tooling and pad-printed designs for the wireless tele-communiucations industry.
Textron also acquired Stuttgart, Germany-based Karl Oelschlager GmbH & Co. Oelschlager manufactures metal stamped parts and engineered assemblies using proprietary technologies in laser welding.
Textron Fastening has more than 16,000 employees at 100 facilities in 18 countries and supplies the aerospace, automotive, computer, consumer, construction, industrial, medical, telecommunications and inventory management industries.
During 2000 Textron Fastening moved its headquarters from Elgin, IL, to suburban Detroit. 840 W. Long Lake #450, Troy, MI 48098. Tel: 248 813-6343.
Textron Fastening is only about 20% of the global corporation. The parent company�s best-known products may be Cessna airplanes and Bell helicopters. Aircraft represents 30% of the business, automotive 20%, industrial 29%, and finance 21%.
Since 1994 Textron Fastening has grown from $400 million in annual sales to $2.3 billion.
Headquarters: 40 Westminster St., P.O. Box 878, Providence, RI 02903-2596. Tel: 401 421-2800. Fax 401 457-3598.
Web: textron.com
NYSE Symbol: TSX
CEO: Lewis Campbell
Investor Relations: Mary Lovejoy, 401 457-6009.
Key fastener executives: Jake Hirsch, Textron Fastening Systems president; Dominick Schiano, fastening executive vice president and CFO.
Employees: 68,000
Percentage of revenue from fastener-related products: 20%
Recent Standard & Poor�s Ratings: Fair Value 70.88 Risk: LowEarn/Div Rank: A

TransTechnology
TransTechnology Corporation is aggressively divesting this year to control debt. Trans-Technology plans to be solely a manufacturer of niche aerospace products.
As a result, the company will divest TransTechnology Engineered Components (TTEC), a manufacturer of spring steel engineered fasteners and headlight adjusters.
The company previously announced that it would seek to divest separately its cold-headed products, aerospace rivet, retaining ring, and hose clamp operations over the next few months, with the proceeds going towards the retirement of its $275 million debt.
TransTechnology CEO Michael Berthelot wants to have all of the divestitures, including TTEC, completed by September 2001 and to have retired substantially all of its debt by that time.
Berthelot explained that during the past year �we have seen a sea change in the domestic automobile and heavy truck manufacturing industries, apart from their current economy-induced slowdowns. It has become clear to us that in order to remain successful as a component supplier to the automotive OEMs, the supplier will have to be of substantial size.
�We do not believe that, in the current or expected capital markets, we will have the opportunity to reach that necessary size within a reasonable time frame,� Berthelot continued. �As a result, we have decided to change our course and concentrate on our aerospace product businesses, where size is not a prerequisite to continuing success.�
Berthelot pointed out that TransTechnology�s aerospace business has been a profitable segment and has grown internally and through acquisitions. Fiscal 2001 will be the sixth consecutive year Aerospace Products will achieve higher annual sales and profits.
TransTechnology manufactures rescue hoists, cargo hooks and hold-open rods for commercial and military aircraft.
�Our Aerospace Products group revenues have grown at a compound rate of 18% over the past five years, while operating income has grown at a 30% rate. For the first nine months of fiscal 2001 our Aerospace Products revenues were $49.6 million and operating income was $11.9 million. While fourth quarter and full fiscal 2001 results will not be announced until next month, we expect our Aerospace Products segment to report a substantial increase over the prior year�s fourth quarter and fiscal year.�
TransTechnology Corporation is a multinational manufacturer of aerospace products and specialty fasteners with more than 2,300 employees at its 14 manufacturing facilities in the U.S., Canada, England, Germany and Brazil.
The company also maintains sales offices in Southfield, MI; Paris; and Barcelona, Spain.
Headquarters: 150 Allen Rd., Liberty Corner, NJ 07938. Tel: 908 903-1600. Fax 908 903-1616.
Web: transtechnology.com
NYSE Symbol: TT
CEO: Michael Berthelot
Investor Relations: Janet Harmsen
Key fastener executive: Robert Tunno, president of industrial products.
Employees: 2,300
Percentage of revenue from fastener-related products: 78%

�2001 FastenerNews.com\