Chicago Rivet Reports ‘Strong’ Revenue & Income
FEATURE
Chicago Rivet & Machine Co. reported revenues grew 8.5% to $37.12 million in 2013, boosted by strong fourth quarter growth of 14.2% to $9.2 million.
“Both the fastener segment and the assembly equipment segment achieved increases in revenue and higher gross margins during the year, aided by growth in domestic automotive production, which is our primary market, as well as increased sales to certain non-automotive customers,” the company stated in its annual report.
The increase in revenue and improved margins produced a 42% increase in net income to $2.5 million, or $2.57 per share.
“These positive results have allowed us to make significant investments in production equipment and facilities improvements in 2013, while increasing shareholder distributions.”
Fastener segment sales increased 8.4% to $33.6 million in 2013, marking the fourth consecutive year of sales exceeding the year earlier period. Favorable material pricing in combination with higher sales resulted in an increase in fastener segment gross margins of $1.05 million.
Capital expenditures nearly tripled to $3.5 million, which included $3.1 million spent on fastener operations. Cold heading and screw machine equipment accounted for $2.7 million of the total, and $414,402 was expended for equipment used in performing secondary operations on parts, inspection equipment and other general plant equipment.
Additional investments of $292,006 for building improvements and office equipment were made in 2013 that benefit both operating segments.
Selling and administrative expenses rose 4.1% to $5.4 million, primarily due to increase profit sharing expenses of $114,600 related to improved operating results, and higher commissions of $89,477 related to the increase in sales.
During 2013 sales to two customers constituted approximately 32% of Chicago Rivet’s consolidated revenues. Sales to TI Group Automotive Systems Corp. accounted for 18% of consolidated revenues, while sales to Fisher & Co. accounted for 14% of revenues. ©2014 GlobalFastenerNews.com
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