By John Wolz editor@GlobalFastenerNews.com
FIN SURVEY: Widespread sales growth in 2010 recovery
Three-quarters of fastener companies participating in the FIN Survey claimed “Moderate” to “Strong” increases in sales and profit during 2010. Those results follow a difficult 2009, when less than one in ten fastener firms reported sales growth.
profit, with an additional 25% achieving strong net earnings growth and 19% saw their bottom line stabilize. The big picture looks even brighter in 2011, with 82% of fastener companies predicting sales growth. About 65% of companies
estimate the growth will be “moderate,” while 17% forecast “strong” revenue growth. Just under two in ten FIN Survey participants expect sales to flatline in 2011. Profits are expected to rise as well in the coming year, with 62% of companies anticipating “moderate” profit improvement and 10% eyeing a “strong” increase in net earnings. In 2010 the FIN Sales Index more than doubled to 3.8 from the previous year’s 1.84 - the lowest level since FIN began tracking
fastener industry sales in 1994. At 3.6 the FIN Profit Index rebounded from 2009’s record low 2.14. This year the sales index forecasts moderate growth to 4.1 and the profit index forecasted to gain more than 11% to 4.
Alcoa to acquire TransDigm’s aerospace fastener business
Alcoa agreed to purchase the aerospace fastener business of TransDigm Group Inc., a leading global designer, producer and supplier of highly engineered aircraft components.
he new business will become part of Alcoa Fastening Systems. The transaction is valued at approximately US$240 million (171.5 million euros) and is expected to be earnings and cash flow accretive in the first year. “This acquisition is an important step for Alcoa Fastening
Systems (AFS), said Vitaliy Rusakov, president, Alcoa Fastening Systems. “It is a part of our strategic plan to accelerate the growth of our business, add efficiencies, broaden our technology base and expand our product offering to better serve our customers and increase shareholder value.” “The TransDigm global aerospace fastener business offers a
strong portfolio of complementary products and is well known in the aerospace industry for producing highly engineered precision fastening solutions used for critical airframe, engine and equipment applications.”
The deal comes weeks after TransDigm acquired the fastener
business when it purchased McKechnie Aerospace in December 2010 following a bidding war with other aerospace companies, including Precision Castparts Corp. The three TransDigm fastener manufacturing facilities,
employing 400 people, are located in Sylmar, California, as well as Redditch and Leicester in the United Kingdom. Founded in 1925 and 1950s respectively, the Redditch, Sylmar and Leicester facilities have provided a wide variety of high-strength, high temperature nickel alloy specialty engine fasteners, airframe bolts and slotted entry bearings. The transaction is expected to complete during the first
quarter of 2011, subject to customary regulatory reviews and approvals. Employment levels will remain the same.
Darling returns as Porteous vice president - materials
After one year of semi-retirement of working 32 hours a week, Bruce Darling has returned to his vice president / materials management role at Porteous Fastener Company.
Founded in 1966, Southern California-based Porteous Fastener Company is an importer/master distributor of construction and industrial fasteners selling only to distributors. Porteous has 17 branches in the U.S. and Canada.
D 24 Fastener + Fixing Magazine • Issue 68 March 2011
arling has been with Porteous for 20 years. He started in the fastener industry 43 years ago with Bosco Fastening Service Center in Dallas. He has made over 35 trips to the Orient, 1,500 visits to more than 400 factories or trading companies in Canada, China, India, Japan, Korea, Malaysia, Mexico, Singapore, Taiwan, Thailand, Vietnam and the U.S.
51% majority of distributors and manufacturers achieved moderate sales growth in 2010, while an additional 21% reported strong sales increases. Just over 18% of fastener companies said sales were stagnant in 2010, with an additional 2% claiming sales fell during the year. The fastener industry also saw its bottom line improved in 2010, with 75% of FIN Survey participants reporting moderate to strong profit gains. Half of all fastener companies claimed moderate improvement in