Global Fastener News

FIN Fastener Stock Index Gains 5.8%; STOCKS: Alcoa, Fastenal, Infast, R&B

John Wolz

The FIN Fastener Stock Index outpaced the competition in the first quarter of 2005, improving 5.8%. An index of related stocks declined 2.3% during the first quarter.\
Aviall saw the largest gain in the quarter, with its stock price gaining 21.9%. Other fastener firms gaining at least 10% in share value included Precision Castparts, Chicago Rivet, Nucor and Paulin.
Nearly half of the publicly traded companies tracked by FINdex saw their share value drop during the period.
Other fastener companies losing at least 10% of share value included Fastenal, Park-Ohio Holdings Corp. and Black & Decker.

Alcoa Sales Increase
Alcoa Inc. reported sales of engineered products, including fasteners, rose 8% to $1.24 billion during the first quarter of 2005, but segment operating income dipped 4.8% to $59 million.
Overall Q1 sales for Alcoa increased 13% to $6.3 billion, the highest in four years. Net income declined 26.7% to $260 million. Q1 capital expenditures totaled $347 million.
“Underlying business performance improved in the quarter as we captured the benefits of higher metal prices and a stronger economy in North America,” commented CEO Alain Belda. “We were able to regain traction on the cost initiative, overcoming cost of inflation increases, to deliver savings to the bottom line.”

Fastenal Profit Jumps
Fastenal Co. reported profit surged 31.6% to $37 million during the first quarter of 2005 as an improved business climate and a new stocking model at its stores helped boost sales 24.5% to $353.8 million.
The company said it opened 74 new sites in the period, up from 49 in the first quarter of 2004. Fastenal has boosted its workforce 5.4% to 5,799 employees in the past three months.

Infast Profit Rises
British fastener distributor Infast Group announced sales of �157.1 million (US$297 million) during 2004, while operating profits rose 9.4% to �3.5 million.
Infast also reported a $3 million reduction in restructuring costs related to the sale of its manufacturing operations.
Shares of Infast rose to an 11-month high after the firm revealed it had received a bid approach. Infast shares were up 15.4% to value the company at �30 million (US$57 million).
Infast stock has been the subject of buying by investment firm North Atlantic Value and venture capitalist John Moulton.
Infast said in a statement it was “in discussions that may or may not lead to an offer for the entire issued share capital of the company. There is no certainty that an offer will be made following these discussions.”
In February Infast sold its fastener plant, Infast Philidas Ltd., for an estimated $1.3 million. Philidas produces about 110 million fasteners annually for such blue chip customers as Ford, BMW, Jaguar and Bosch.

R&B Posts Strong Results
R&B Inc. reported sales for 2004 increased 12% to $249.5 million, while net income grew 29% to $17.1 million. The company said volume increased primarily as a result of continued sales growth from new products.
Sales for the fourth quarter of 2004 gained 17% to $65.1 million, and net income improved 5% to $4 million.
R&B also announced a 2-for-1 stock split on its common stock, payable in the form of a stock dividend of one share for each share held. Stockholders were to be issued one additional share for each share of common stock held on March 15, with a payment date of March 28, 2005. �2005 FastenerNews.com