Exhibit 13
 47




---



##### 



Exhibit-13
   
 Chicago Rivet & Machine Co.
 2009 Annual Report




---



##### 



Highlights
  2009


2008Net Sales

$
21,391,003


$
28,518,931Net Loss


(1,282,751
)


(825,482
)Net Loss Per Share


(1.33
)


(0.85
)Dividends Per Share


.48



.87Net Cash Provided by Operating Activities


315,143



1,188,208Expenditures for Property, Plant and Equipment


448,177



373,183Working Capital


14,089,914



15,373,910Total Shareholders Equity


21,162,114



22,908,608Common Shares Outstanding at Year-End


966,132



966,132Shareholders Equity Per Common Share


21.90



23.71   Annual Meeting
 The annual meeting of shareholders
 will be held on May 11, 2010
    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




---



##### 



Managements
    Report on Financial Condition and Results of Operations
 
   To Our Shareholders:
   RESULTS OF
    OPERATIONS
      2009 Compared to
    2008
          DIVIDENDS
     1




---



##### 



Managements
    Report
 (Continued)
    PROPERTY, PLANT
    AND EQUIPMENT
        LIQUIDITY AND
    CAPITAL RESOURCES
    Off-Balance Sheet
    Arrangements
      APPLICATION OF
    CRITICAL ACCOUNTING POLICIES
    NEW ACCOUNTING
    STANDARDS
    OUTLOOK FOR
    2010
       2




---



##### 



Managements
    Report
 (Continued)
 
    excellent customer service as well
    as our sound financial condition, which provides our customers
    with a stable sourcing alternative in uncertain times.
      -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




---



##### 



Consolidated Balance
    Sheets
  December 31

2009


2008AssetsCurrent AssetsCash and Cash Equivalents

$
569,286


$
1,553,226Certificates of Deposit


6,430,000



5,997,000Accounts Receivable  Less allowances of $155,000 and
    $165,000, respectively


3,813,663



3,315,748Inventories, net


3,753,936



5,048,632Deferred Income Taxes


429,191



504,191Prepaid Income Taxes


579,105



355,788Other Current Assets


245,415



234,412Total Current Assets


15,820,596



17,008,997Property, Plant and Equipment, net


7,806,475



8,399,973Total Assets

$
23,627,071


$
25,408,970Liabilities and Shareholders EquityCurrent LiabilitiesAccounts Payable

$
1,022,747


$
509,657Accrued Wages and Salaries


370,428



456,687Other Accrued Expenses


235,261



292,418Unearned Revenue and Customer Deposits


102,246



376,325Total Current Liabilities


1,730,682



1,635,087Deferred Income Taxes


734,275



865,275Total Liabilities


2,464,957



2,500,362Commitments 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


23,498,982



25,245,476Treasury Stock, 171,964 Shares at cost


(3,922,098
)


(3,922,098
)Total Shareholders Equity


21,162,114



22,908,608Total Liabilities and Shareholders Equity

$
23,627,071


$
25,408,970   The accompanying notes are an integral part of the
    Consolidated Financial Statements.
     4




---



##### 



Consolidated Statements of
    Operations
  For The Years Ended December 31

2009


2008Net Sales

$
21,391,003


$
28,518,931Cost of Goods Sold


18,710,355



24,832,224Gross Profit


2,680,648



3,686,707Selling and Administrative Expenses


4,762,284



5,185,787Operating Loss


(2,081,636
)


(1,499,080
)Other Income


121,885



247,598Loss Before Income Taxes


(1,959,751
)


(1,251,482
)Provision for Income Taxes


(677,000
)


(426,000
)Net Loss

$
(1,282,751
)

$
(825,482
)Net Loss Per Share

$
(1.33
)

$
(0.85
)   Consolidated Statements of
    Retained Earnings
  For The Years Ended December 31

2009


2008Retained Earnings at Beginning of Year

$
25,245,476


$
26,911,493Net Loss


(1,282,751
)


(825,482
)Cash Dividends Paid, $.48 and $.87 Per Share in 2009 and 2008,
    respectively


(463,743
)


(840,535
)Retained Earnings at End of Year

$
23,498,982


$
25,245,476   The accompanying notes are an integral part of the
    Consolidated Financial Statements.
     5




---



##### 



Consolidated Statements of Cash
    Flows
  For The Years Ended December 31

2009


2008Cash Flows from Operating Activities:Net Loss

$
(1,282,751
)

$
(825,482
)Adjustments to Reconcile Net Loss to Net Cash Provided by
    Operating Activities:Depreciation and Amortization


1,028,610



1,075,796Net Gain on the Sale of Properties


(14,112
)


(24,053
)Deferred Income Taxes


(56,000
)


(173,000
)Changes in Operating Assets and Liabilities:Accounts Receivable, net


(497,915
)


2,013,665Inventories, net


1,294,696



(72,799
)Other Current Assets


(234,320
)


(91,633
)Accounts Payable


494,430



(639,617
)Accrued Wages and Salaries


(86,259
)


(222,546
)Other Accrued Expenses


(57,157
)


(94,046
)Unearned Revenue and Customer Deposits


(274,079
)


241,923Net Cash Provided by Operating Activities


315,143



1,188,208Cash Flows from Investing Activities:Capital Expenditures


(429,517
)


(370,923
)Proceeds from the Sale of Properties


27,177



28,404Proceeds from Certificates of Deposit


12,236,000



14,980,000Purchases of Certificates of Deposit


(12,669,000
)


(14,097,000
)Net Cash Provided By (Used in) Investing Activities


(835,340
)


540,481Cash Flows from Financing Activities:Cash Dividends Paid


(463,743
)


(840,535
)Net Cash Used in Financing Activities


(463,743
)


(840,535
)Net Increase (Decrease) in Cash and Cash Equivalents


(983,940
)


888,154Cash and Cash Equivalents:Beginning of Year


1,553,226



665,072End of Year

$
569,286


$
1,553,226Refunds Received for Income Taxes

$
397,683


$
149,369Supplemental Schedule of Non-cash Investing Activities:Capital Expenditures in Accounts Payable

$
18,660


$
2,260   The accompanying notes are an integral part of the
    Consolidated Financial Statements.
     6




---



##### 



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




---



##### 



Segment Information
  Net Income Per Share
  Use of Estimates
  Reclassifications
  Recent Accounting Pronouncements 2009-01, 2009-01), 2009-01 2009-01 2009-01
  350-30-35, 350-30-35
  805-20-25,
  825-10-65,
    2009-05, 2009-05), 820-10, 2009-05
   8




---



##### 



the identical liability when traded
    as an asset; and (b) quoted prices for similar liabilities
    or similar liabilities when traded as assets; and
    (2) another valuation technique that is consistent with the
    principles of Topic 820, Fair Value Measurements.
    The provisions of ASU
    2009-05 are
    effective for the first reporting period (including interim
    periods) beginning after August 2009 and therefore we adopted
    these provisions. The provisions of ASU
    2009-05 do
    not have a material impact on our consolidated financial
    statements.
  2010-06, 2010-06), 820-10, 2010-06
  2Balance Sheet Details
  2009


2008Inventories:Raw materials

$
1,324,614


$
1,600,001Work in process


1,500,723



1,628,664Finished goods


1,493,099



2,399,9674,318,436



5,628,632Valuation reserves


564,500



580,000$
3,753,936


$
5,048,632Property, Plant and Equipment, net:Land and improvements

$
1,029,035


$
1,029,035Buildings and improvements


6,402,784



6,391,952Machinery and equipment and other


28,010,475



28,163,59035,442,294



35,584,577Accumulated depreciation


27,635,819



27,184,604$
7,806,475


$
8,399,973Other Accrued Expenses:Property taxes

$
110,528


$
112,591Profit sharing plan contribution


65,000



110,000All other items


59,733



69,827$
235,261


$
292,418   3Income Taxes
  2009


2008Current:Federal

$
(594,000
)

$
(245,000
)State


(27,000
)


(8,000
)Deferred


(56,000
)


(173,000
)$
(677,000
)

$
(426,000
)     2009


2008Depreciation and amortization

$
(734,275
)

$
(865,275
)Inventory


284,465



302,566Accrued vacation


90,884



142,687Allowance for doubtful accounts


53,100



56,575Other, net


742



2,363429,191



504,191$
(305,084
)

$
(361,084
)     2009


2008Amount


%


Amount


%Expected tax at U.S. Statutory rate

$
(666,000
)


(34.0
)

$
(426,000
)


(34.0
)Permanent differences


7,000



.4



5,000



.4State taxes, net of federal benefit


(18,000
)


(.9
)


(5,000
)


(.4
)Income tax benefit

$
(677,000
)


(34.5
)

$
(426,000
)


(34.0
)       4Profit Sharing Plan
  5Other Income
  2009


2008Interest income

$
106,803


$
232,620Other


15,082



14,978$
121,885


$
247,598    9




---



##### 



6Segment Information
  AssemblyFastener


Equipment


Other


ConsolidatedYear 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



8,252,99723,627,071Year 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



8,644,61725,408,970     7Shareholder Rights Agreement
  8Commitments and Contingencies
    9Subsequent Event
   10




---



##### 



Report of Independent
    Registered Public Accounting Firm
   
        
      11




---



##### 



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, 2009, there
    were approximately 220 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

2009


2008


2009


2008First

$
.18


$
.33
*

$
12.96


$
10.15


$
25.75


$
20.00Second


.10



.18


$
13.59


$
11.01


$
24.99


$
19.75Third


.10



.18


$
15.93


$
11.62


$
23.43


$
19.00Fourth


.10



.18


$
16.81


$
11.15


$
20.00


$
9.81    * Includes an extra dividend
    of $.15 per share
  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
 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




---



##### 



1