NORTH AMERICAN NEWS FINdex drops as stock markets fluctuate
The FIN Fastener Stock Index dropped 16% in the third quarter of 2011, compared to a 14.7% decline by an index of related industrial stocks.
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nly one FINdex company achieved a positive gain on its share price during the period. Chicago Rivet & Machine Co. stock gained 3.1% to US$16.01 at the market close on 30th
September.
During a tough quarter that took its toll on the market, every other publicly traded company with fastener holdings saw its shares decline - most by double digits. Park-Ohio stock recorded the largest drop (43.2%) to US$12.01
for Q3. Alcoa and Stanley Black and Decker also suffered significant share declines of 30% or more. For the first nine months of 2011, the FINdex dropped 8.4%,
besting the 14.7% decline recorded by an index of related industrial stocks.
Four fastener companies recorded stock gains for the first
three quarters of 2011: Carpenter Technologies, Fastenal, Grainger, and Precision Castparts. Carpenter Technology stock rose 17.9% to US$44.89 through 30th
September, as aerospace
demand has proven resilient in a sputtering economy. Fastenal has achieved a 12.8% increase in share value to US$33.28 in 2011, while Grainger stock has grown 9.7% to US$149.54 so far this year. Precision Castparts turned in a solid performance as well, with its shares growing 11.7% in value to US$155.46 during the first nine months. The FINdex grew 8.3% during the first half of 2011, boosted by a 3.4% rise during the second quarter of 2011.
Field Fastener buying Duncan Bolt’s Fastening Solutions
Field Fastener has agreed to acquire Fastening Solutions LLC, a subsidiary of Duncan Bolt. The acquisition, to be completed by the end of the November, will extend Field’s global footprint and provide customers with expanded products and service offerings.
he acquisition of Fastening Solutions will increase Field’s supply base with over 30 new suppliers, resulting in a broader product offering for its customers as well as the ability to purchase directly from selected suppliers. “This acquisition continues to strengthen Field’s ability to provide proactive cost savings and robust VMI systems to our customers by expanding our reach and footprint,” said Field executive vice president, Jim Derry. “Field has developed a
seamless transition plan, combined with an outstanding Field team and recent facility expansion, that will allow Field to support the current Fastening Solutions customers from our headquarters near Rockford, Illinois.” In North America, Field will gain a stronger presence in the south-western United States, further establish its presence in Canada,
and increase the localization of service in Mexico. As a result of the acquisition, Field will also increase its customer base in China and India. A 43,000 square feet building addition, focused on operation and efficiency excellence, was recently completed at Field’s facility in the Chicago, Illinois area, positioning them to continue meeting the growing needs of their expanding customer base. Field indicated “key personnel” at Fastening Solutions would continue to be actively involved in the transition.
expand it. “We plan to bring in about US$1 million worth of new equipment” over the next year, stated Strandquist. By the end of 2012, Würth hopes to return Cardinal to its previous operating capacity, with projected sales of US$10 million and a doubling of its headcount to more than 50 workers by the end of next year. Würth reportedly intends to keep Cardinal operating at its existing location and under its existing name. At the fastener show in Las Vegas, Grabner told
GlobalFastenerNews.com that his company’s growth continued to be strong - just not enough to pay for needed wind energy investments. Now he says Cardinal will be able to grow faster under Würth’s ownership. Cardinal had nearly doubled its revenues in four years with wind energy fasteners, supplying more than a dozen wind turbine builders, including the Danish wind manufacturer Vestas and Spain’s Gamesa SA. However, court records indicate Cardinal owed Wells Fargo US$1.8 million and the Grow America Fund of the non-profit National Development Council more than US$850,000. Approximately 200 unsecured creditors are owed an additional US$3 million.
Würth buys Cardinal Fastener J
Germany’s Würth Group purchased Cardinal Fastener & Specialty Co. for US$3.9 million (2.9 million euros) at auction, Crain’s Cleveland Business reports.
udge Pat E. Morgenstern-Clarren of the U.S. Bankruptcy Court in Cleveland approved the sale on 27th October. He waived the
customary 14-day waiting period to close on the sale of a bankrupt company, paving the way for Würth to close the deal quickly. Marc Strandquist, CEO of Würth’s Michigan-based Dokka Fasteners unit reportedly will oversee Cardinal going forward as it continues to operate locally under current president John Grabner. Strandquist said Würth will invest further in Cardinal to
26 Fastener + Fixing Magazine • Issue 72 November 2011
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