TriMas Revenue Rises But Profits Fall On Acqusiition

BLOOMFIELD HILLS — TriMas Corp. (Nasdaq: TRS) reported net income of $18.4 million or 41 cents a share in the third quarter ended Sept. 30, down from $28.9 million or 71 cents a share in the same quarter a year earlier.

Revenue was a record $380.1 million, up 7.1 percent from $354.9 million in the third quarter of 2013.

The company said earnings were affected by $1.9 million in costs related to the acquisition of Allfast Fastening Systems in the just-ended quarter. On Oct. 17, TriMas closed the acquisition of Allfast, a manufacturer of rivets, bolts, fasteners and tools for the aerospace industry.

“Throughout the third quarter, we continued to face both external market pressures and operational challenges in our energy, aerospace and Cequent businesses as previously indicated,” said David Wathen, TriMas president and CEO. “We are keenly focused on improving our results to have a positive impact on the short and long-term. … Our teams are focused on simplifying our company, as we concentrate on enhancing our mix of higher-margin businesses and continue to implement productivity and lean programs throughout the organization to reduce complexity and costs. We are in the process of supplementing and building additional capabilities in our operational and finance teams to better reflect our future needs, while continuing to focus on process improvement efforts. We also continue to identify the bright spots and support our customers with new, innovative products and expanded geographic reach.”

For the nine months, TriMas reported sales of $1.16 billion, up from $1.07 billion a year earlier. Net income was $67 million or $1.48 a share, down from $71.8 million or $1.72 a share a year earlier. The company had 45.3 million shares outstanding as of Sept. 30, up from 40.7 million a year earlier.

Profits also fell due to higher cost of sales, higher selling, general and administrative costs, and a $10.4 million gain on sale of property and equipment last year.

More at http://www.trimascorp.com/.

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