FIN Survey: More Report 2006 Sales Up Than Profits; Inventory Turns Down
FIN Survey: More Report 2006 Sales Up Than Profits; Inventory Turns Down
John Wolz
More than 70% of the fastener companies participating in the End of 2006 FIN / FastenerNews.com Survey reported sales increased in 2006, but less than half saw increased profits.
“Overall, responses are rather mixed,” observed Tony Casilio of AWP Research. Nearly two-thirds reported costs were up and just 3.3% reported cost decreases. “These factors no doubt have contributed to a slipping of the FIN Current Company Performance Index to 6.8 for 2006, down from 7.5 for the previous year,” Casilio commented.
Inventory turns decline: Distributor inventory turns slowed in 2006, dropping to 3.9. Historically, inventory turns have stayed above 4, expect for when they dropped to a record low 3.7 in 2004, the lowest inventory turnover index since FIN started tracking them in 1994. Inventory turnovers in 2006 for manufacturers slipped to 4.9 from 5.3 for 2005. �2007 FastenerNews.com
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