18
By John Wolz
editor@FastenerNews.com
Darling: Asian steel price PCC fastener sales
increases slow
grow nearly 14%
After a 20% third quarter hike, steel being offline for 45 days in Taiwan
prices in Taiwan are up another 4% adds to price pressure, as does the
Precision Castparts reported fastener products sales
for the final quarter of 2008, Bruce weak U.S. dollar.
increased 13.8% to US$426.4 million in the second
Darling told the Western Association Taiwan steel prices are up 80% since
quarter of fiscal 2009, while operating income from
of Fastener Distributors.
the second quarter of 2007 and China is
fasteners climbed 31.4% to US$119.6 million.
Prices in China actually dropped
"Critical aerospace fasteners sales grew 19% year
up 83%. That represents a 49% increase
7.5% this quarter after a 22.7%
over year, significantly outpacing the market," the
in the cost of fasteners from China. Asian
company stated. Fastener Products' aerospace demand
increase in the third quarter. The cost
mills had to pay 65% more for iron ore
was "very strong" prior to the Boeing strike, and PCC
of steel represents 62% to 65% of the
from Brazil this year and Australia's iron
expects to see solid demand and increasing production
cost of a fastener.
ore practically doubled at 96%. once it's concluded.
Current inventory on distributors'
"It is a difficult time to determine
"Like other aerospace suppliers, we are feeling the
shelves in North America is probably
what to expect next," Darling said.
impact of the Boeing strike, and the longer it lasts, the
based on 2007 steel prices of US$564
"We see steel mills continuing to raise
more orders will get pushed out," Donegan continued.
per ton in Taiwan and US$460 to
prices at a time consumption remains
Q2 sales were hurt by a decline in automotive fastener
US$640 in China, noted the vice sales, driven by flagging North American automobile
slow. Fastener prices are beginning to
president of materials for Porteous
production.
Fastener Company.
come down because of steel surpluses
During Q2 PCC announced plans to boost its aerospace
This quarter's steel price in Taiwan
and factors other than steel," Darling
offerings by acquiring two companies: Airdrome
jumped to more than US$1,014 per
observed. Holdings and Fatigue Technology.
ton, compared to US$844 in China.
He noted the cost of fuel is coming "Looking beyond the ongoing Boeing situation and
At a time when steel fastener
down, electricity increases have been
the unpredictability of current economic conditions, our
long-term aerospace outlook remains positive," Donegan
prices are rising, brass, nickel and
postponed in Taiwan, while steamship
said. "The base aircraft build rate at Airbus and Boeing
molybdenum are down, indicating
companies report vessels are not full
remains stable. In addition, we expect significant sales
stainless steel and brass fastener
and spot rates are decreasing.
gains once the 787 moves into production later in 2009
prices may be steadier. In addition to
Despite the increases, Darling
and beyond, given our significant dollar content on that
the cost of steel, the "usual suspects
advised distributors to buy mill
platform."
of energy and transportation" are product, but "not buy big extra
Overall PCC sales grew 5.9% to US$1.82 billion, with
increasing imported fastener prices, quantities. You've got to buy to have net income improving 13.6% to US$265.7 million.
Darling pointed out. A steel furnace stock to serve your customers." Web: precast.com
Black & Decker fastener sales drop, margins flat
Black & Decker reported sales at its Fastening and Assembly Systems segment decreased 2% to US$173 million during the third quarter of
2008, while profit dipped 3% to US$26.8 million.
"Strong results in Asia could not fully offset the impact of a double-digit decline in domestic automotive production," noted CEO Nolan Archibald.
Despite lower volume, the segment's operating margin for the quarter was nearly flat at 15.5%.
In mid-September, Black & Decker acquired fastener manufacturer Spiralock, which had 2007 sales of approximately US$15 million. Founded in
1979, Spiralock produces internal thread form systems used in aerospace, appliance, automotive, defense, medical implant, oil exploration and
other industries. Spiralock has facilities in Europe, Asia, South & North America and is headquartered at Madison Heights, MI.
During the first nine months of 2008, Fastening and Assembly Systems sales edged up to US$542.9 million, while segment profit remained flat
at US$85.1 million. Overall sales during Q3 decreased 4% to US$1.57 billion, while net income dropped 18% to US$85.8 million.
"Looking ahead, slowing global economies and weakening consumer confidence will make the fourth quarter very challenging," stated Archibald.
"We anticipate a high single-digit rate of organic sales decline for the quarter." Web: bdk.com
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