BLOOMFIELD HILLS—The diversified manufacturer TriMas Corp. reported net income of $22 million or 48 cents a share in the second quarter ended June 30, up from $19.6 million or 43 cents a share in the second quarter of 2018. Revenue was $239.4 million, up from $224.9 million a year earlier.
For the six months, net income was $41.1 million or 90 cents a share, down from $43.9 million or 96 cents a share in the first half of 2018. Revenue was $460.7 million, up from $442 million a year earlier.
The company said that in the second quarter, organic and acquisition-related sales growth was partially offset by the impact of unfavorable currency exchange. The company also released a figure for operating profit adjusted for “special items” such as merger and acquisition costs, restructuring costs, and pension changes, of $22.9 million for the quarter, up from $22.2 million a year earlier.
Said TriMas President and CEO Thomas Amato: “In addition to achieving sales and adjusted earnings per share growth, we completed the acquisition of Taplast, which is aligned with our strategy of building out TriMas’ packaging platform, retired 1 percent of our shares outstanding, delivered free cash flow in line with our expectations, and ended the quarter with a strong balance sheet. We remain committed to allocating capital on a balanced basis, focusing first on reinvesting in our businesses with a priority on the highest return opportunities, in addition to bolt-on acquisitions and share repurchases, all while maintaining a solid balance sheet. We demonstrated this capital allocation strategy in the second quarter, which is a core part of TriMas’ overall thesis to drive shareholder value and made possible by the cash generation of our businesses in diverse end markets. Throughout the remainder of 2019, we will continue to drive performance under the TriMas business model and capitalize on market opportunities through innovation and speed to market. With respect to our full year expectations, we are reaffirming our organic sales growth and free cash flow outlook, and raising our earnings per share outlook to $1.85 to $1.95 per share.”
TriMas’ packaging segment, which develops and manufactures specialty dispensing and closure products for the health, beauty and home care, food and beverage, and industrial markets. Net sales for the second quarter increased 9.4 percent compared to the year ago period, as a result of incremental sales related to the acquisitions of Taplast and Plastic Srl, and higher sales of health, beauty and home care products related to new product introductions. These increases were partially offset by lower sales of food and beverage products and the impact of unfavorable currency exchange. Second quarter operating profit remained relatively flat while operating margin declined, as the impact of higher sales was offset by a less favorable product sales mix, primarily as a result of lower margin product sales related to recent acquisitions.
TriMas’ aerospace segment, which manufactures highly-engineered, precision fasteners to serve the aerospace market, saw a sales increase of 8 percent for the quarter due to steady demand levels for fastener products and improved production throughput. Second quarter operating profit and the related margin percentage increased primarily due to higher sales levels.
TriMas’ special products segment, which manufactures steel cylinders, sealing and fastener products, wellhead engines and compression systems, and machined components for the industrial, petrochemical, oil and gas exploration and refining, and aerospace markets, saw a second quarter sales increase of 2.7 percent due to higher sales levels in the sealing and fastener, and machined components product lines. These increases were partially offset by lower sales of engines and compressors used in oil and gas upstream applications, as rig activity and spending remained weak in the United States and Canada, and lower cylinder sales. Second quarter operating profit and the related margin percentage decreased as the impact of higher sales levels was more than offset by a less favorable product sales mix, and higher input and freight costs.
Company officials reaffirmed TriMas’ organic sales growth outlook of 3 to 5 percent compared to 2018, although it may trend toward the lower end of the range due to the impact of certain softer end markets during the first half of the year. The vompany also raised its full year 2019 adjusted diluted earnings per share range to $1.85 to $1.95, from the previous range of $1.82 to $1.92 per share.
To listen to a conference call discussing these results, visit www.trimascorp.com, under the “Investors” section, with an accompanying slide presentation. A replay of the conference call will be available on the TriMas website or by dialing (888) 203-1112 (Replay Passcode 5451030) beginning July 30, 2019 at 3 p.m. through Aug. 6, 2019 at 3 p.m. ET.