Exhibit-13
   
 Chicago Rivet & Machine Co.
 2008 Annual Report




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Highlights
  2008


2007Net Sales

$
28,518,931


$
37,776,264Net Income (Loss)


(825,482
)


1,267,072Net Income (Loss) Per Share


(0.85
)


1.31Dividends Per Share


.87



.72Net Cash Provided by Operating Activities


1,188,208



2,835,633Expenditures for Property, Plant and Equipment


373,183



424,509Working Capital


15,373,910



16,452,963Total Shareholders Equity


22,908,608



24,574,625Common Shares Outstanding at Year-End


966,132



966,132Shareholders Equity Per Common Share


23.71



25.44   Annual Meeting
 The annual meeting of shareholders
 will be held on May 12, 2009
    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
    2008 Compared to
    2007
        DIVIDENDS
    PROPERTY, PLANT
    AND EQUIPMENT
     1




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Managements
    Report
 (Continued)
    waste treatment equipment. Assembly
    equipment segment additions totaled $15,035, for a new vertical
    mill.
      LIQUIDITY AND
    CAPITAL RESOURCES
    Off-Balance Sheet
    Arrangements
      APPLICATION OF
    CRITICAL ACCOUNTING POLICIES
    NEW ACCOUNTING
    STANDARDS
    OUTLOOK FOR
    2009
         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

2008


2007AssetsCurrent AssetsCash and Cash Equivalents

$
1,553,226


$
665,072Certificates of Deposit


5,997,000



6,880,000Accounts Receivable  Less allowances of $165,000 and
    $95,000, respectively


3,315,748



5,329,413Inventories, net


5,048,632



4,975,833Deferred Income Taxes


504,191



451,191Prepaid Income Taxes


355,788



211,025Other Current Assets


234,412



287,542Total Current Assets


17,008,997



18,800,076Property, Plant and Equipment, net


8,399,973



9,106,937Total Assets

$
25,408,970


$
27,907,013Liabilities and Shareholders EquityCurrent LiabilitiesAccounts Payable

$
509,657


$
1,147,014Accrued Wages and Salaries


456,687



679,233Accrued Profit Sharing Plan Contribution


110,000



201,000Other Accrued Expenses


558,743



319,866Total Current Liabilities


1,635,087



2,347,113Deferred Income Taxes


865,275



985,275Total Liabilities


2,500,362



3,332,388Commitments and Contingencies (Note 9)






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


25,245,476



26,911,493Treasury Stock, 171,964 Shares at cost


(3,922,098
)


(3,922,098
)Total Shareholders Equity


22,908,608



24,574,625Total Liabilities and Shareholders Equity

$
25,408,970


$
27,907,013   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

2008


2007Net Sales

$
28,518,931


$
37,776,264Cost of Goods Sold


24,832,224



30,541,577Gross Profit


3,686,707



7,234,687Selling and Administrative Expenses


5,185,787



5,617,024Plant Closing Expenses






20,337Operating Profit (Loss)


(1,499,080
)


1,597,326Other Income, net


247,598



323,746Income (Loss) Before Income Taxes


(1,251,482
)


1,921,072Provision for Income Taxes


(426,000
)


654,000Net Income (Loss)

$
(825,482
)

$
1,267,072Net Income (Loss) Per Share

$
(0.85
)

$
1.31   Consolidated Statements of
    Retained Earnings
  For The Years Ended December 31

2008


2007Retained Earnings at Beginning of Year

$
26,911,493


$
26,340,036Net Income (Loss)


(825,482
)


1,267,072Cash Dividends Paid, $.87 and $.72 Per Share in 2008 and 2007,
    respectively


(840,535
)


(695,615
)Retained Earnings at End of Year

$
25,245,476


$
26,911,493   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

2008


2007Cash Flows from Operating Activities:Net Income (Loss)

$
(825,482
)

$
1,267,072Adjustments to Reconcile Net Income (Loss) to Net Cash Provided
    by Operating Activities:Depreciation and Amortization


1,075,796



1,136,806Net Gain on the Sale of Properties


(24,053
)


(20,740
)Deferred Income Taxes


(173,000
)


(43,000
)Changes in Operating Assets and Liabilities:Accounts Receivable, net


2,013,665



573,215Inventories, net


(72,799
)


505,476Other Current Assets


(91,633
)


(85,060
)Accounts Payable


(639,617
)


(302,670
)Accrued Wages and Salaries


(222,546
)


(14,209
)Accrued Profit Sharing Plan Contribution


(91,000
)


(24,000
)Other Accrued Expenses


238,877



(157,257
)Net Cash Provided by Operating Activities


1,188,208



2,835,633Cash Flows from Investing Activities:Capital Expenditures


(370,923
)


(406,293
)Proceeds from the Sale of Properties


28,404



38,766Proceeds from Certificates of Deposit


14,980,000



18,135,000Purchases of Certificates of Deposit


(14,097,000
)


(19,610,000
)Net Cash Provided By (Used in) Investing Activities


540,481



(1,842,527
)Cash Flows from Financing Activities:Cash Dividends Paid


(840,535
)


(695,615
)Net Cash Used in Financing Activities


(840,535
)


(695,615
)Net Increase in Cash and Cash Equivalents


888,154



297,491Cash and Cash Equivalents:Beginning of Year


665,072



367,581End of Year

$
1,553,226


$
665,072Cash Paid (Refund Received) for:Income Taxes

$
(149,369
)

$
715,111Supplemental Schedule of Non-cash Investing Activities:Capital Expenditures in Accounts Payable

$
2,260


$
18,216   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 00-10,
  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 yearsAutomatic rivet setting machines on lease


10 yearsCapitalized software costs


3 to 5 yearsOther equipment


3 to 15 years       Income Taxes
       7




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respect to the Companys
    unrecognized tax benefits as an outcome of an IRS examination,
    management does not anticipate any adjustments that would result
    in a material change to the results of operations or financial
    condition of the Company. The 2004 federal income tax return was
    examined by the IRS and no adjustments were made as a result of
    the examination.
      Segment Information
  Net Income Per Share
  Use of Estimates
  Reclassifications
  Recent Accounting Pronouncements
    FAS 157-1Application FAS 157-1). FAS 157-1 FAS 157-1
  FAS 157-2 FAS 157-2). FAS 157-2 FAS 157-2
      FAS 142-3, FAS 142-3)
   8




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##### 



the useful life of a recognized
    intangible asset under FAS No. 142, Goodwill and
    Other Intangible Assets
    (FAS No. 142). FSP
    FAS 142-3
    applies to intangible assets that are acquired individually or
    with a group of assets and intangible assets acquired in both
    business combinations and asset acquisitions. FSP
    FAS 142-3
    removes the provision under FAS No. 142 that requires
    an entity to consider whether the renewal or extension can be
    accomplished without substantial cost or material modifications
    of the existing terms and conditions associated with the asset.
    Instead, FSP
    FAS 142-3
    requires that an entity consider its own experience in renewing
    similar arrangements. An entity would consider market
    participant assumptions regarding renewal if no such relevant
    experience exists. FSP
    FAS 142-3
    is effective for beginning January 1, 2009. The Company
    does not expect the provisions to have a material impact on its
    consolidated financial statements.
  2Balance Sheet Details
  2008


2007Inventories:Raw materials

$
1,600,001


$
1,275,595Work in process


1,628,664



1,597,483Finished goods


2,399,967



2,577,7555,628,632



5,450,833Valuation reserves


580,000



475,000$
5,048,632


$
4,975,833Property, Plant and Equipment, net:Land and improvements

$
1,029,035


$
1,029,035Buildings and improvements


6,391,952



6,385,831Machinery and equipment and other


28,163,590



28,124,00735,584,577



35,538,873Accumulated depreciation


27,184,604



26,431,936$
8,399,973


$
9,106,937Other Accrued Expenses:Property taxes

$
112,591


$
113,261Unearned revenue and customer deposits


376,325



134,403All other items


69,827



72,202$
558,743


$
319,866   3Income Taxes
  2008


2007Current:Federal

$
(245,000
)

$
616,000State


(8,000
)


81,000Deferred


(173,000
)


(43,000
)$
(426,000
)

$
654,000     2008


2007Depreciation and amortization

$
(865,275
)

$
(985,275
)Inventory


302,566



268,415Accrued vacation


142,687



147,350Allowance for doubtful accounts


56,575



32,675Other, net


2,363



2,751504,191



451,191$
(361,084
)

$
(534,084
)     2008


2007Amount


%


Amount


%Expected tax at U.S. Statutory rate

$
(426,000
)


(34.0
)

$
653,000



34.0Permanent differences


5,000



.4



(53,000
)


(2.8
)State taxes, net of federal benefit


(5,000
)


(.4
)


54,000



2.8Income tax expense (benefit)

$
(426,000
)


(34.0
)

$
654,000



34.0   4Note Payable
  5Profit Sharing Plan
  6Other Income, net
  2008


2007Interest income

$
232,620


$
306,825Other


14,978



16,921$
247,598


$
323,746   7Segment Information
   9




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such machines and the leasing of
    automatic rivet setting machines. Information by segment is as
    follows:
  AssemblyFastener


Equipment


Other


ConsolidatedYear Ended December 31, 2008:Net sales

$
24,679,510


$
3,839,421


$



$
28,518,931Depreciation


915,369



74,562



85,865



1,075,796Segment profit (loss)


(16,178
)


607,444







591,266Selling and administrative expenses










(2,075,368
)


(2,075,368
)Interest income










232,620



232,620Loss before income taxes














(1,251,482
)Capital expenditures


358,148



15,035







373,183Segment assets:Accounts receivable, net


2,967,588



348,160







3,315,748Inventories, net


3,588,770



1,459,862







5,048,632Property, plant and equipment, net


6,574,157



1,062,422



763,394



8,399,973Other assets










8,644,617



8,644,61725,408,970Year Ended December 31, 2007:Net sales

$
33,083,907


$
4,692,357


$



$
37,776,264Depreciation


957,661



85,136



94,009



1,136,806Segment profit


2,848,062



906,774







3,754,836Selling and administrative expenses










(2,120,252
)


(2,120,252
)Plant closing expenses


(20,337
)










(20,337
)Interest income










306,825



306,825Income before income taxes














1,921,072Capital expenditures


390,258



34,251







424,509Segment assets:Accounts receivable, net


4,878,675



450,738







5,329,413Inventories, net


3,499,840



1,475,993







4,975,833Property, plant and equipment, net


7,132,439



1,126,300



848,198



9,106,937Other assets










8,494,830



8,494,83027,907,013


8Shareholder Rights Agreement
  9Commitments and Contingencies
    10Plant Closing
  11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 American Stock Exchange (trading privileges only,
    not registered.) The ticker symbol is: CVR.
  At December 31, 2008, there
    were approximately 230 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

2008


2007


2008


2007First

$
.33
*

$
.18


$
25.75


$
20.00


$
23.00


$
21.25Second


.18



.18


$
24.99


$
19.75


$
25.38


$
21.75Third


.18



.18


$
23.43


$
19.00


$
25.50


$
22.50Fourth


.18



.18


$
20.00


$
9.81


$
26.10


$
19.40    * Includes an extra dividend
    of $.15 per share
  BOARD OF
    DIRECTORS
 John A. Morrissey (e)
 Chairman of the Board
 of the Company
 President 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 and
 Chief Executive Officer 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)
 Attorney at Law
 George Patrick Lynch, Ltd.
 Lisle, Illinois
 John R. Madden (a)(c)(e)(n)
 Chairman of the Board of
 F.N.B.C. of La Grange
 La Grange, Illinois
 Walter W. Morrissey (e)
 Attorney at Law
 Morrissey & Robinson
 Oakbrook Terrace, 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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