Chicago Rivet & Machine Co. CVR is expected to release fourth-quarter 2014 results on Mar 20. Based in Illinois, the company primarily manufactures and sells rivets, automatic rivet setting machines, and parts and tools for such machines.
The company mainly serves the automotive industry in the North America. A multifarious customer base of this industry has diversified Chicago Rivet & Machine’s revenue sources. Also, the company’s independent distribution facilities have strengthened its businesses in the region.
However, uncertain global economic conditions can restrict growth in the automobile and automotive components industry, thereby severely jeopardizing the financials of companies like Chicago Rivet & Machine. Moreover, the company faces intense competition in its business from domestic and international suppliers.
In addition, Chicago Rivet & Machine is exposed to customer concentration risks. In 2013, the company sourced more than 10% of its sales from two customers. Any change in the order pattern of these customers will impact the company’s top line.
In the last reported quarter, Chicago Rivet & Machine’s earnings of 56 cents per share decreased 34.1% year over year. Revenues were down 4.9% due to a 3.9% fall in Fasteners revenues and 15.7% decline in Assembly Equipment sales. Persistent weakness in these revenue sources will negatively impact fourth-quarter results.
Chicago Rivet & Machine currently has a market capitalization of $32.8 million. Other major players in the industry include Proto Labs, Inc. PRLB, AB SKF SKFRY and Noranda Aluminum Holding Corp. NOR. While both Proto Labs and AB SKF sport a Zacks Rank #1 (Strong Buy), Noranda Aluminum Holding carries a Zacks Rank #2 (Buy).
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