Chicago Rivet & Machine’s 2007 sales slip 6 percent
Industrial Distribution staff -- Industrial Distribution, 3/21/2008 6:06:00 AM
Sales for Chicago Rivet & Machine Co. slipped 6.4 percent to $37.8 million last year, compared with $40.4 million during the prior year.Net income for the fastener, hand and machine tool manufacturer rose 13.1 percent to $1.27 million, compared with $1.1 million during 2006.
Chicago Rivet attributed the revenue decline to reduced demand from automotive customers, which caused sales for its fastener segment to fall by 3.9 percent. But despite the dip in sales, lower operating expenses and the absence of significant plant closing expenses accounted for the rise in income. The company shuttered a plant in Jefferson, Iowa in May 2006, transferring operations to a facility in Tyrone, Pa. That closure cut operating expenses during 2007 enough to offset the revenue decline.
“The outlook for 2008 is more challenging than a year ago. With the possibility of a recession that would likely affect all the markets we serve, we expect customers will continue to demand higher quality and lower prices as their operations cope with a difficult economic environment. Our ability to increase revenues while diversifying our customer base will be significant factors determining our future success,” the company said in a statement.
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