Exhibit 13
 21




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Exhibit-13
   
 Chicago Rivet & Machine Co.
 2010 Annual Report




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Highlights
  2010


2009Net Sales

$
28,520,510


$
21,391,003Net Income (Loss)


606,025



(1,282,751
)Net Income (Loss) Per Share


.63



(1.33
)Dividends Per Share


.42



.48Net Cash Provided by Operating Activities


1,179,393



315,143Expenditures for Property, Plant and Equipment


687,108



448,177Working Capital


14,628,761



14,089,914Total Shareholders Equity


21,362,364



21,162,114Common Shares Outstanding at Year-End


966,132



966,132Shareholders Equity Per Common Share


22.11



21.90   Annual Meeting
 The annual meeting of shareholders
 will be held on May 10, 2011
    at 10:00 a.m. at
 901 Frontenac Road
 Naperville, Illinois
   Chicago
    Rivet & Machine Co.
    
    901 Frontenac Road
    
    P.O. Box 3061
    
    Naperville, Illinois 60566
    
    www.chicagorivet.com




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Managements
    Report on Financial Condition and Results of Operations
 
   To Our Shareholders:
   RESULTS OF
    OPERATIONS
    2010 Compared to
    2009
        DIVIDENDS
    PROPERTY, PLANT
    AND EQUIPMENT
         1




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Managements
    Report
 (Continued)
    LIQUIDITY AND
    CAPITAL RESOURCES
      Off-Balance Sheet
    Arrangements
      APPLICATION OF
    CRITICAL ACCOUNTING POLICIES
    NEW ACCOUNTING
    STANDARDS
    OUTLOOK FOR
    2011
           2




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Managements
    Report
 (Continued)
 
         -s- J. A. MORRISSEY

-s- MICHAEL J. BOURGJohn A. Morrissey

Michael J. BourgChairman

President      FORWARD-LOOKING
    STATEMENTS
   This discussion contains certain forward-looking
    statements which are inherently subject to risks and
    uncertainties that may cause actual events to differ materially
    from those discussed herein. Factors which may cause such
    differences in events include, those disclosed under Risk
    Factors in our Annual Report on
    Form 10-K
    and in the other filings we make with the United States
    Securities and Exchange Commission. These factors, include among
    other things: conditions in the domestic automotive industry,
    upon which we rely for sales revenue, the intense competition in
    our markets, the concentration of our sales to two major
    customers, the price and availability of raw materials, labor
    relations issues, losses related to product liability, warranty
    and recall claims, costs relating to environmental laws and
    regulations, and the loss of the services of our key employees.
    Many of these factors are beyond our ability to control or
    predict. Readers are cautioned not to place undue reliance on
    these forward-looking statements. We undertake no obligation to
    publish revised forward-looking statements to reflect events or
    circumstances after the date hereof or to reflect the occurrence
    of unanticipated events.
   3




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Consolidated
    Balance Sheets
  December 31

2010


2009AssetsCurrent AssetsCash and Cash Equivalents

$
725,524


$
569,286Certificates of Deposit


6,380,000



6,430,000Accounts Receivable  Less allowances of $135,000 and
    $155,000, respectively


4,017,081



3,813,663Inventories, net


4,310,154



3,753,936Deferred Income Taxes


394,191



429,191Prepaid Income Taxes


72,249



579,105Other Current Assets


280,768



245,415Total Current Assets


16,179,967



15,820,596Property, Plant and Equipment, net


7,478,878



7,806,475Total Assets

$
23,658,845


$
23,627,071Liabilities and Shareholders EquityCurrent LiabilitiesAccounts Payable

$
748,781


$
1,022,747Accrued Wages and Salaries


405,604



370,428Other Accrued Expenses


312,123



235,261Unearned Revenue and Customer Deposits


84,698



102,246Total Current Liabilities


1,551,206



1,730,682Deferred Income Taxes


745,275



734,275Total Liabilities


2,296,481



2,464,957Commitments and Contingencies (Note 8)Shareholders EquityPreferred Stock, No Par Value,
    500,000 Shares Authorized: None Outstanding


-



Common Stock, $1.00 Par Value,
    4,000,000 Shares Authorized:
    1,138,096 Shares Issued


1,138,096



1,138,096Additional Paid-in Capital


447,134



447,134Retained Earnings


23,699,232



23,498,982Treasury Stock, 171,964 Shares at cost


(3,922,098
)


(3,922,098
)Total Shareholders Equity


21,362,364



21,162,114Total Liabilities and Shareholders Equity

$
23,658,845


$
23,627,071   The accompanying notes are an integral part of the
    Consolidated Financial Statements.
     4




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Consolidated
    Statements of Operations
  For The Years Ended December 31

2010


2009Net Sales

$
28,520,510


$
21,391,003Cost of Goods Sold


22,886,772



18,710,355Gross Profit


5,633,738



2,680,648Selling and Administrative Expenses


4,808,292



4,762,284Operating Profit (Loss)


825,446



(2,081,636
)Other Income


68,579



121,885Income (Loss) Before Income Taxes


894,025



(1,959,751
)Provision (Benefit) for Income Taxes


288,000



(677,000
)Net Income (Loss)

$
606,025


$
(1,282,751
)Net Income (Loss) Per Share

$
0.63


$
(1.33
)   Consolidated Statements of
    Retained Earnings
  For The Years Ended December 31

2010


2009Retained Earnings at Beginning of Year

$
23,498,982


$
25,245,476Net Income (Loss)


606,025



(1,282,751
)Cash Dividends Paid, $.42 and $.48 Per Share in 2010 and 2009,
    respectively


(405,775
)


(463,743
)Retained Earnings at End of Year

$
23,699,232


$
23,498,982   The accompanying notes are an integral part of the
    Consolidated Financial Statements.
     5




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Consolidated
    Statements of Cash Flows
  For The Years Ended December 31

2010


2009Cash Flows from Operating Activities:Net Income (Loss)

$
606,025


$
(1,282,751
)Adjustments to Reconcile Net Income (Loss) to Net Cash Provided
    by Operating Activities:Depreciation and Amortization


1,000,354



1,028,610Net Loss (Gain) on the Sale of Properties


6,651



(14,112
)Deferred Income Taxes


46,000



(56,000
)Changes in Operating Assets and Liabilities:Accounts Receivable, net


(203,418
)


(497,915
)Inventories, net


(556,218
)


1,294,696Other Current Assets


471,503



(234,320
)Accounts Payable


(285,994
)


494,430Accrued Wages and Salaries


35,176



(86,259
)Other Accrued Expenses


76,862



(57,157
)Unearned Revenue and Customer Deposits


(17,548
)


(274,079
)Net Cash Provided by Operating Activities


1,179,393



315,143Cash Flows from Investing Activities:Capital Expenditures


(675,080
)


(429,517
)Proceeds from the Sale of Properties


7,700



27,177Proceeds from Certificates of Deposit


8,521,000



12,236,000Purchases of Certificates of Deposit


(8,471,000
)


(12,669,000
)Net Cash Used in Investing Activities


(617,380
)


(835,340
)Cash Flows from Financing Activities:Cash Dividends Paid


(405,775
)


(463,743
)Net Cash Used in Financing Activities


(405,775
)


(463,743
)Net Increase (Decrease) in Cash and Cash Equivalents


156,238



(983,940
)Cash and Cash Equivalents:Beginning of Year


569,286



1,553,226End of Year

$
725,524


$
569,286Net Refunds Received for Income Taxes

$
264,856


$
397,683Supplemental Schedule of Non-cash Investing Activities:Capital Expenditures in Accounts Payable

$
12,028


$
18,660   The accompanying notes are an integral part of the
    Consolidated Financial Statements.
     6




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Notes to
    Consolidated
    Financial Statements
  1Nature of
    Business and Significant Accounting Policies
  Nature of Business
  A summary of the Companys significant accounting
    policies follows:
  Principles of Consolidation
  Revenue Recognition
  Credit Risk
  Cash and Cash Equivalents
  Fair Value of Financial Instruments
  Inventories first-in,
  Property, Plant and Equipment
  Asset category

Estimated useful lifeLand improvements


15 to 25 yearsBuildings and improvements


10 to 35 yearsMachinery and equipment


7 to 15 yearsCapitalized software costs


3 to 5 yearsOther equipment


3 to 15 years       Income Taxes
         7




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Segment Information
  Net Income Per Share
  Use of Estimates
  Recent Accounting Pronouncements 2010-09, 855-10, 2010-09 2010-09.
  2010-06, 2010-06). 2010-06 2010-06 2010-06 2010-06
  2009-13,
  2Balance Sheet Details
  2010


2009Inventories:Raw materials

$
1,821,397


$
1,324,614Work in process


1,363,637



1,500,723Finished goods


1,641,720



1,493,0994,826,754



4,318,436Valuation reserves


516,600



564,500$
4,310,154


$
3,753,936Property, Plant and Equipment, net:Land and improvements

$
1,250,875


$
1,029,035Buildings and improvements


6,354,014



6,402,784Machinery and equipment and other


28,019,687



28,010,47535,624,576



35,442,294Accumulated depreciation


28,145,698



27,635,819$
7,478,878


$
7,806,475Other Accrued Expenses:Property taxes

$
105,177


$
110,528Profit sharing plan contribution


90,000



65,000All other items


116,946



59,733$
312,123


$
235,261   3Income Taxes
  2010


2009Current:Federal

$
239,000


$
(594,000
)State


3,000



(27,000
)Deferred


46,000



(56,000
)$
288,000


$
(677,000
)    8




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2010


2009Depreciation and amortization

$
(745,275
)

$
(734,275
)Inventory


259,549



284,465Accrued vacation


89,150



90,884Allowance for doubtful accounts


46,275



53,100Other, net


(783
)


742394,191



429,191$
(351,084
)

$
(305,084
)     2010


2009Amount


%


Amount


%Expected tax at U.S. Statutory rate

$
304,000



34.0


$
(666,000
)


(34.0
)Permanent differences


(18,000
)


(2.0
)


7,000



.4State taxes, net of federal benefit


2,000



.2



(18,000
)


(.9
)Income tax expense (benefit)

$
288,000



32.2


$
(677,000
)


(34.5
)       4Profit Sharing Plan
  5Other Income
  2010


2009Interest income

$
53,501


$
106,803Other


15,078



15,082$
68,579


$
121,885   6Segment Information
  AssemblyFastener


Equipment


Other


ConsolidatedYear Ended December 31, 2010:Net sales

$
25,252,093


$
3,268,417


$



$
28,520,510Depreciation


873,687



59,443



67,224



1,000,354Segment profit


2,026,323



751,958







2,778,281Selling and administrative expenses










(1,937,757
)


(1,937,757
)Interest income










53,501



53,501Income before income taxes














894,025Capital expenditures


459,084



157,548



70,476



687,108Segment assets:Accounts receivable, net


3,759,004



258,077







4,017,081Inventories, net


3,447,396



862,758







4,310,154Property, plant and equipment, net


5,700,325



1,098,494



680,059



7,478,878Other assets










7,852,732



7,852,73223,658,845Year Ended December 31, 2009:Net sales

$
18,286,342


$
3,104,661


$



$
21,391,003Depreciation


888,823



65,987



73,800



1,028,610Segment profit (loss)


(496,877
)


377,009







(119,868
)Selling and administrative expenses










(1,946,686
)


(1,946,686
)Interest income










106,803



106,803Loss before income taxes














(1,959,751
)Capital expenditures


443,643



4,534







448,177Segment assets:Accounts receivable, net


3,500,224



313,439







3,813,663Inventories, net


2,757,316



996,620







3,753,936Property, plant and equipment, net


6,124,499



1,000,969



681,007



7,806,475Other assets










8,252,997



8,252,99723,627,071     7Shareholder Rights Agreement
   9




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person or group. The rights will
    expire on December 1, 2019 unless they are extended,
    redeemed or exchanged.
  8Commitments and Contingencies
    9Subsequent Event
   10




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Report of Independent
    Registered Public Accounting Firm
           
      11




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INFORMATION ON
    COMPANYS COMMON STOCK
  The Companys common stock is
    traded on the NYSE Amex (trading privileges only, not
    registered.) The ticker symbol is: CVR.
  At December 31, 2010, there
    were approximately 210 shareholders of record.
  The transfer agent and registrar
    for the Companys common stock is:
  Continental Stock
    Transfer & Trust Company
 17 Battery Place
 New York, New York 10004
  The following table shows the
    dividends declared and the quarterly high and low prices of the
    common stock for the last two years.
  DividendsDeclared

Market RangeQuarter

2010

2009

2010

2009First

$
.10


$
.18


$
17.25


$
12.40


$
12.96


$
10.15Second


.10



.10


$
17.53


$
14.11


$
13.59


$
11.01Third


.10



.10


$
19.93


$
14.00


$
15.93


$
11.62Fourth


.12



.10


$
19.80


$
16.23


$
16.81


$
11.15   BOARD OF
    DIRECTORS
 John A. Morrissey (e)
 Chairman of the Board
 of the Company
 Chief Executive Officer
 and Director of
 Algonquin State Bank, N.A.
 Algonquin, Illinois
 Michael J. Bourg (e)
 President of the Company
 Edward L. Chott (a)(c)(n)
 Chairman of the Board of
 The Broaster Co.
 Beloit, Wisconsin
 Kent H. Cooney (a)
 Chief Financial Officer of
 Heldon Bay Limited Partnership
 Bigfork, Montana
 William T. Divane, Jr. (a)(c)(n)
 Chairman of the Board and
 Chief Executive Officer of
 Divane Bros. Electric Co.
 Franklin Park, Illinois
   George P. Lynch (c)(n)
 Attorney at Law
 George Patrick Lynch, Ltd.
 Wheaton, Illinois
 Walter W. Morrissey (e)
 Attorney at Law
 Lillig & Thorsness,Ltd.
 Oak Brook, Illinois
   (a) Member of Audit Committee
 (c) Member of Compensation
    Committee
 (e) Member of Executive
    Committee
 (n) Member of Nominating
    Committee
 CORPORATE
    OFFICERS
   John A. Morrissey
 Chairman, Chief
 Executive Officer
 Michael J. Bourg
 President, Chief Operating
 Officer and Treasurer
 Kimberly A. Kirhofer
 Secretary
  CHICAGO RIVET & MACHINE
    CO.
 Administrative
    & Sales Offices
 Naperville, Illinois
 Norwell, Massachusetts
 Manufacturing
    Facilities
 Albia Division
 Albia, Iowa
 Tyrone Division
 Tyrone, Pennsylvania
 H & L Tool Company, Inc.
 Madison Heights, Michigan
  
  Chicago
    Rivet & Machine Co.
    
    901
    Frontenac Road
    
    P.O. Box 3061
    
    Naperville, Illinois 60566
    
    www.chicagorivet.com   12




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