Global Fastener News

Chicago Rivet Fastener Profit Soars 10-Fold

Jason Sandefur

Chicago Rivet & Machine Co. posted a 10% jump in fastener revenue to $9.18 million during the first quarter of 2006, while profit from fasteners soared more than ten-fold to $648,135 compared with a $57,643 profit during the first quarter of 2005. Capital expenditures in its fastener operation more than tripled to $62,370 during Q1.
“Despite the increase in volume, tooling expense was nearly $185,000 lower than the first quarter of 2005 as our product mix included a higher percentage of parts for which tooling designs were fully developed,” according to the company’s SEC filing.
Lower raw material prices also helped, boosting gross margins by $72,000.
Overall gross margins improved for the first time in five quarters as net income climbed to $389,284 compared with a $76,765 loss during the first quarter of 2005. Consolidated revenue increased 8.5% to $10.9 million.
“The first quarter of 2006 reflects significant improvement over the first quarter of 2005 when demand from our major customers weakened,” the company stated. “However, these improvements come against the backdrop of an automotive industry that remains extremely challenging.”
EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) for the first quarter rose more than 200% to $933,544 – a two-year high for the company, according to CashFlowNews.com. But during the last 12 months ended March 31, 2006, EBITDA for Chicago Rivet dipped 66% to a nine-year low of $1.18 million. Web: chicagorivet.com �2006 FastenerNews.com