Chicago Rivet & Machine Co. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a challenging period marked by declining revenues and increased net losses compared to the previous fiscal year.

For the three months ended September 30, 2024, net sales totaled $6,969,921, a decrease of 12.3% from $7,946,172 in the same period of 2023. The Fastener segment experienced a significant decline, with sales dropping to $5,927,316 from $6,977,441, a 15.1% decrease. Notably, automotive fastener sales fell sharply by 31.0% to $3,578,390, attributed to inventory reductions from major automotive customers and a nearly 5% decline in global light vehicle production. Conversely, non-automotive fastener sales increased by 31.0% to $2,348,926, indicating some resilience in that segment. The Assembly Equipment segment saw a modest increase in sales, rising to $1,042,605 from $968,731, a 7.6% growth.

Gross profit for the third quarter improved significantly to $694,987, compared to $41,153 in Q3 2023, driven by better margins in the Fastener segment, which reported gross margins of $703,955, up from a loss of $161,831 in the prior year. However, the company still faced an operating loss of $(823,571), an improvement from $(1,232,022) in Q3 2023. The net loss for the quarter was $(1,446,621), or $(1.50) per share, compared to a net loss of $(964,042), or $(1.00) per share, in the same quarter last year.

For the nine months ended September 30, 2024, total net sales were $22,882,579, down 7.5% from $24,726,828 in the prior year. The net loss for this period was $(2,002,484), or $(2.07) per share, an improvement from a net loss of $(2,858,685), or $(2.96) per share, in the same period of 2023.

The company also announced the closure of its manufacturing facility in Albia, Iowa, effective October 1, 2024, impacting all 19 employees. This strategic decision aims to consolidate operations to Tyrone, Pennsylvania, to streamline processes and reduce costs. One-time expenses related to this closure totaled approximately $170,000 in Q3 2024.

As of September 30, 2024, total assets decreased to $26,391,515 from $27,830,905 at the end of 2023, while total shareholders' equity also declined to $23,674,565 from $25,966,889. Cash and cash equivalents increased to $1,665,325 from $1,387,075, reflecting a net increase of $278,250 in cash for the nine months ended September 30, 2024, compared to a decrease of $(1,682,119) in the same period of 2023.

The company continues to face challenges in the automotive sector but sees potential growth in non-automotive fastener and assembly equipment segments.