TriMas Profit Falls, But Sales Hit Record

BLOOMFIELD HILLS — TriMas Corp. Thursday reported net income of $26.2 million or 58 cents a share in the second quarter ended June 30, down from net income of $26.9 million or 68 cents a share in the second quarter a year ago.

The company had 45.2 million shares outstanding for this year’s quarter, vs. 39.9 million shares a year ago.

Revenue for the quarer was $404 million, up from $378 million a year earlier.

For the six months, net income was $44.8 million or $1 a share, up from $41.8 mllion or $1.02 a share a year earlier. Again, the greater number of shares this year explains the discrepancy in earnings vs. earnings per share.

For he quarter, the company’s packaging operations had $86.3 million in sales and a $20.5 million operating profit, vs. last yaer’s $78.6 million and $19.6 million respectively.

Sales in energy operations were $52.3 million with a $630,000 operating loss due to $2.4 million in severance and restructuring costs. Last year energy posted sales of $58.8 million and a $5.2 million operating profit.

Sales in aerospace and defesnse were $32.8 million with a $5.3 million operating profit, vs. $23.7 million and $5.5 million last year respectively.

Sales in engineered components were $54.3 million with a $9 million operating profit, vs. $50 million and $5.9 million last year respectively.

Cequent APEA, a maker of roof racks and towing products for the Australian aftermarket, posted sales of $43.8 million and an operating profit of $2.2 million, vs. $38.3 million and $2.6 million last year respectively. Cequent Americas posted sales of $134.5 million and operating profit of $16.9 million, vs. $128.5 million and $12.9 million last year respectively. Cequent Americas had severance and restructuring costs of $1.5 million this yaer and $2 million last year.

The company said it cut interest expense by more than 35 percent from the second quarter of 2013 through new and renegotiated credit agreements.

“During the second quarter, we achieved 6.9 percent sales growth, led by our packaging and aerospace businesses, offsetting the challenges we continued to face in our energy end markets and sales reduction resulting from our third quarter 2013 divestiture of the Italian rings and levers business,” said TriMas president and CEO David Wathen. “We improved our operating profit by 9.7 percent with a 30 basis point improvement in margin .. in spite of a higher share count and tax rate as compared to a year ago, and end market headwinds in energy and the aerospace distribution channel. We continue to identify the bright spots and support our customers with new, innovative products and expanded geographic reach. We remain committed to increasing margins across all of our businesses, growing faster in our higher margin businesses, exiting and reducing some lower margin business, and implementing productivity and lean programs throughout the organization.”

TriMas maintained its 2014 outlook originally provided Feb. 20 — a sales increase of 6 to 8 percent from 2013 and full-year earnigns per share of $2.15 to $2.25.

To listen to a recording of the conference call discussing these results after 3 p.m. Thursday, visit www.trimascorp.com or call (888) 203-1112 using replay code 3923586.

Leave a Reply

Your email address will not be published. Required fields are marked *