Global Fastener News

John Wolz

Fastenal�s 2000 Sales Up 22.4% � Fastenal Company reported net sales for 2000 increased 22.4% over 1999.
Net sales for the year ended December 31, 2000, totaled $745,740,000. Net earnings grew 23.3% to $80,730,000.
Fourth quarter 2000 sales totaled $187,961,000, a 21% rise over the same period of 1999. Net earnings grew 19% to $18,907,000.
During the fourth quarter Winona, MN-based Fastenal opened 36 new sites, bringing the total number of sites to 897. At the end of the quarter 828 were operating as traditional Fastenal stores, and 69 were operating as satellite stores.
There were 4,356 site employees as of December 31, 2000, an 18.7% increase over the end of 1999.
Fastenal management reported 23.3% growth in daily sales for October 2000 over the same month in 1999.
�As the quarter progressed we began to see a weakening in the overall industrial economy,� reads a company statement. �As a result of this weakening, our growth in daily sales dropped to 21.0% in November.
Severe weather during December in the northern and central United States as well as many parts of Canada slowed construction, some general manufacturing and Fastenal�s ability to distribute products. The daily growth in sales in December dropped to 17.8%.
December sales also were impacted by the weakening of the Canadian dollar.
�As we begin 2001 we are very optimistic about the benefits to be derived from our direct-mailing campaign. This campaign consists of mailing approximately 500,000 pieces of marketing material per month in 2001 to current and prospective customers, a tenfold increase over the volume of direct mailings in 1999. The funding for this initiative came from our suppliers who are directly involved in the program.�

Acquisitions Boost Alcoa Earnings � Alcoa Inc. revenues jumped 52.9% for the fourth quarter over the same period of 1999, with the difference primarily the result of major acquisitions. Net income rose 17.4%.
Alcoa sales for the full year totaled $23.09 billion, compared with $16.4 billion for 1999. Income rose from $1.05 billion to $1.48 billion.
The acquisitions include Cordant Technologies Inc. with its Huck International fastener division. Pittsburgh, PA-based Alcoa also acquired its major aluminum competitor, Reynolds Metals Co.
Not included in the figures are the sales of Midwest Fastener Corporation, which Alcoa acquired last month.
Alcoa�s rate of return on sales after taxes slipped to 6% in the fourth quarter from 7.9% in the same 1999 period but nosed up to 6.5% for the full year from 6.4% in 1999.
CEO Alan Belda said that last year�s market environment was one of increasing softness in the construction, transportation, building and distribution markets, as well as significantly higher energy prices.�
Alcoa said that its full-year aluminum shipments totaled 5,398,000 tons compared with 4,478,000 tons in pre-Reynolds 1999.
The primary aluminum price averaged about 70.3 cents a pound last year compared with 61.8 cents a pound in 1999. Alcoa said it averaged 77 cents a pound on primary aluminum products in the fourth quarter, unchanged from the previous period but up nearly 7 percent from the fourth quarter of 1999.

Black & Decker Lowers Expectations � Black & Decker Corp. expects sales for the first quarter of 2001 will be flat or down �modestly� from the prior-year level.
Sales from fastening and assembly systems were flat for the quarter.
Assuming that the U.S. economy begins to improve in the second half of 2001 and anticipating substantial sales from new products during that period, Black & Decker looks forward to sales and earnings growth, particularly in the fourth quarter.
The maker of power tools, hardware and home improvement products expects higher sales for the full year and an increase in diluted earnings per share in line with the current consensus estimate. It also expects to convert 70% to 80% of net earnings to free cash flow in 2001.
Black & Decker earned $83 million, or 97 cents a diluted share, on sales of $1.13 billion for the second quarter ended July 2.
Black & Decker said the decline in sales during the latest fourth quarter, particularly in North American power tools and accessories, reflects the slowdown in the U.S. economy and inventory reduction actions by key retailers.
The reduction in sales, coupled with lower margins in European power tools and U.S. accessories, resulted in decreased recurring earnings per share.
The company�s year-end inventory was about $44 million higher than planned. Roughly half of the increase was a result of a strengthening euro and the acquisition of Emglo in December. The remainder was caused by lower-than-expected sales.

Textron Sales Up; Profit Down � Textron Inc. reported a 10.4% increase in annual revenues to $13.09 billion during 2000 but a 1.6% dip in revenues in the fourth quarter of 2000 to $3.31 billion.
Net earnings plummeted 208.4% in the fourth quarter to a loss of $218 million, dragging down the annual earnings 90.2% to $218 million.
Textron reported several �special charges� impacted its earnings for 2000, such as $366 million for restructuring efforts and $117 million in write-downs of e-business.
As a result of the company�s restructuring efforts and weak earnings, Textron said it will cut about 5% of the company�s workforce, 3,600 jobs, before the end of 2001.
�During the quarter we met our earnings objectives, overcoming the negative impact of a rapid decline in automotive production and general weakness in the economy,� CEO Lewis Campbell said. �We were able to meet our target through cost reduction and other actions.�

SPS Earnings Dip � SPS Technologies Inc. reported fourth quarter 2000 net earnings of $12.4 million dipped from $12.6 million in the same period of 1999.
Operating earnings for the fourth quarter were $23.0 million, or 11% higher than the fourth quarter of 1999. Improvements in operating earnings in the specialty materials and alloys segment along with the contribution to earnings of Avibank Mfg. Inc. were partially offset by lower operating earnings of the aerospace businesses.
Net sales for the 2000 fourth quarter were $215.5 million compared with $194.9 million a year ago, an increase of 11%. Incoming orders increased 24% for the fourth quarter of 2000 to $222.1 million. Backlog at December 31, 2000, was $294.2 million, up 15%, from a year before. Increased orders in the specialty materials and alloys segment along with the orders associated with businesses acquired in 2000 contributed to this result.
SPS net sales were up 11% to $872.8 million. Net earnings were $47.4 million, compared with $51.2 million reported for the same period a year ago.

Honeywell Meets Lowered Expectations � Honeywell International Inc. met its own lowered expectations for the fourth quarter of 2000, a positive sign for its pending merger with General Electric Co.
In what is likely its last earnings report before its merger with GE, expected to close this quarter, Honeywell said it earned 70 cents a share, down from 77 cents in the same period a year earlier and one penny below the estimate of analysts surveyed by First Call/Thomson Financial.
Honeywell had lowered earnings for the fourth quarter twice late last year; its most recent downgrade came in December, when the Morris Township, N.J.-based company said it would earn between 70 cents and 74 cents a share.
Honeywell reported fourth-quarter 2000 sales of $6.45 billion, which was 5% higher than the final quarter of 1999.
For the full year, Honeywell reported ongoing earnings of $2.83 a share and a 6% rise in sales to $25 billion. The weak euro cut about 2% off sales, the company said.
On a positive note, Honeywell said that while 2000 results were lower than expected, there were �signs of encouragement in the second half of 2000, with significant contract wins in both aerospace and industrial control.�

Nucor Sets Records Despite Slow Quarter � Nucor Corporation reported record sales totaling $4,586,000,000 for 2000, up more than $585 million.
At nearly $311 million, net earnings also set a record. The 1999 total was $245 million.
Nucor CEO Daniel DiMicco noted the record sales and earnings came despite the fourth quarter being �impacted by the continued high level of imported steel and a decrease in demand.�
Nucor also set a record in producing 11 million tons of steel in a year.
Nucor�s cold finished steel sales � including fasteners � reached 250,000 tons, compared with 243,000 tons in 1999.
Fourth quarter sales dipped about $83 million to $1,082.
DiMicco said he expects the difficult conditions the company faced in the 2000 fourth quarter to continue into the first half of 2001, but conditions and earning will improve at the beginning of the second quarter.
DiMicco also announced the company recently signed a memorandum of understanding with Sumitomo Corp. (J.SUT) regarding the possible purchase of two plants owned by Sumitomo�s Auburn Steel Co. joint venture with Kyoei Steel Co.
Fourth-quarter results also included charges to cover an $800 bonus for each of Nucor�s 7,800 employees, DiMicco said.
Nucor�s average sales price in the fourth quarter was $393 a ton, down $18 a ton, or 4%, from the third quarter.
Gross margin as a percentage of sales increased to 16% in the fourth quarter, from 13.3% in the third quarter, largely driven by the company�s inventory accounting credit.

Danaher Up 18% � Danaher Corporation fourth quarter and year- end net earnings rose 18%.
Net earnings for the fourth quarter of 2000 were $87.8 million, up 18% from the 1999 fourth quarter. Sales for the 2000 fourth quarter were $1,032.4 million, an increase of 22%.
For the full year, net earnings increased 19% to $324.2 million, and earnings per share rose 20%.
CEO George Sherman pronounced himself �extremely pleased to report record performance for both the fourth quarter and all of 2000. Process/Environmental Control segment sales were strong during the fourth quarter, allowing us to realize 4% core volume growth despite the expected sales decline in several tools and components segment businesses.� \