Fastener Stocks Outperform Stock Market in Q3
FEATURE
Fastener stocks were good to investors during the third quarter of 2009. The FIN Fastener Stock Index increased 19.5% during Q3, beating a 16% gain by a composite index of related industrial stocks. More than three-fourths of the public companies with fastener holdings saw a double-digit rise in share value during Q3.
The FINdex performance during Q3 marked back-to-back periods of improvement after four consecutive quarters of decline.
• Alcoa stock jumped 27% during Q3. Alcoa’s Engineered Solutions segment, including Alcoa Fastening Systems, reported sales declined 28% to $1.13 billion during the third quarter of 2009.
• Fastenal shares gained 14.5% during the quarter. Q3 sales slipped 21.7% to $489.3 million, while net earnings declined 34% to $47.6 million.
• Grainger stock increased 9% in value. Grainger reported third quarter sales, including fasteners, dropped 14% to $1.59 billion, while net earnings grew 3% to $145 million versus $140 million in 2008. Operating earnings declined 19%.
• Precision Castparts shares shot up 39% during Q3. Fastener Products sales at PCC dropped 16% to $338 million during the period. Fastener Products operating margins improved to 32.5% despite a 7% decline in income to $109.8 million
• Nucor stock increased 5.8%. The steel gian reported cold finished steel sales, including fasteners, dropped 24% to 87,000 tons during the third quarter.
• Anixter shares gained 6.7%. Anixter reported sales at its North American OEM Supply segment, declined 8% to $128.8 million during the third quarter of 2009.
• B/E Aerospace stock jumped 40% during Q3. The company’s fastener business, B/E Aerospace Consumables Management, reported sales slid 30% to $181 million on a proforma basis. Q3 segment operating earnings fell 23% to $33.5 million.
• MSC Industrial shares gained 23%. The company reported sales, including fasteners, dropped 21% to $354.1 million during the period. Operating income fell 46% to $41.8 million, while net income declined 48% to $26 million.
• Carpenter Technologies stock grew 12% during the period. The company reported aerospace market sales, including fasteners, fell 35% to $102.9 million
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