U.S. Fastener Industry Hit By Financial Crisis; Stocks Drop 9.9% in Q3
U.S. Fastener Industry Hit By Financial Crisis; Stocks Drop 9.9% in Q3
Jason Sandefur
The economic meltdown on Wall Street that has prompted a government showdown over a $700 billion bailout plan put a damper on the stock performance of public companies with fastener businesses.
Many companies tracked by FIN saw their share value drop during a record market slide on Monday, Sept. 29, when the Dow plunged 777 points to 10,365. The markets plummeted after the U.S. House of Representatives rejected a massive bailout bill hammered out over the weekend.
Dorman Products saw its shares drop 19.7% to $10.93, the single largest percentage of stock value loss suffered by public fastener companies.
Other fastener companies with double-digit share losses on Monday included Park-Ohio (17.1%), Nucor (16.6%), B/E Aerospace (13.4%), Lawson Products (12%), and Carpenter Technologies (11.5%).
The damage to growth may not be limited to the financial sector. Aerospace manufacturer Heartland Precision Fasteners Inc. of New Century, KS, shelved plans to add a $1.5 million extension to its factory, which produces more than 300,000 fasteners a day and employs 80 people.
“All of this is making us think twice; this is a big investment for us,” said Heartland president David Rose told the Wall Street Journal. “So I guess that means I’m doing my part to make sure it all fails, by not spending anything.”
And Taiwanese fastener suppliers have stepped up exploration of such emerging markets as Latin America in the wake of the financial crisis, fearing a crippled U.S. market. �2008 FastenerNews.com
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