BLOOMFIELD HILLS — The diversified manufacturer TriMas Corp. (NASDAQ: TRS) announced net income of $1.7 million or 4 cents a share in the second quarter, down from $26.2 million or 58 cents a share a year earlier. Revenue was $224.9 million, virutally unchanged from $224.7 million a year earlier.
For the six months, net income was $15.7 million or 35 cents a share, down from $45.6 million or $1 a share a year earlier. Revenue was $449 million, up from $441.5 million a year earlier.
The company also reported second quarte 2015 income attributable to ongoing operations after the spinoff of its Cequent truck parts businesses into a new public company called Horizon Global Corp. (NYSE: HZN). That figure excluding one-time items was 30 cents a share, down from 37 cents a share a year earlier. The company said the decline was mostly the result of lower oil prices, a stronger U.S. dollar, the aerospace industry carrying less inventory, and resolution of a legal claim (the latter of which hit earnings by $2.8 million, or 4 cents a share).
TriMas president and CEO David Wathen said the Horizon spinoff “represents a major milestone for our company, simplifying and improving the margin profile of our portfolio, and positioning us to deliver enhanced performance over time and drive value for shareholders. We dedicated a significant amount of effort and resources to the separation; I want to thank all of our employees for their hard work and dedication during this process and for enabling such a smooth transition.”
Added Wathen: “Our greatest area of focus going forward is in our energy business, where we are assessing broader restructuring and additional cost actions given its recent performance. We are confident that continued execution on our key operational initiatives will position each of our businesses to deliver profitable growth as we pursue market opportunities and as external conditions improve.”
Wathen said the company now expects year over year revenue growth of up to 2 percent, as organic and acquisition growth of approximately 10 percent is expected to be mostly offset by lower oil prices and the stronger U.S. dollar.
TriMas’ debt as of June 30 was $464 million, down from $638.6 million as of Dec. 31.
The company said sales rose 3.9 percent in its packaging businesses, 35.8 percent in its aerospace business, and fell 4.1 percent in the energy segment. Engineered components sales tumbled 22.8 percent, primarily due to lower sales of slow speed and compressor engines resulting from the impact of lower oil prices, partially offset by increased sales of industrial cylinders.
The company also provided full-year 2015 diluted earnings per share outlook of $1.15 to $1.25, excluding any future events that may be considered Special Items. The company also said it expects free cash flow, defined as net cash provided by operating activities of continuing operations minus capital expenditures, to be between $30 million and $35 million for the year.
To listen in on a conference call discussing these results, visit www.trimascorp.com or call (888) 203-1112, using replay code 6793033.