BLOOMFIELD HILLS—TriMas Corp. (NASDAQ: TRS), the Bloomfield Hills-based manufacturer, announced higher revenue and net income for the quarter and year ended Dec. 31.
For the quarter, net income was $38.4 million or 86 cents a share, up from $16.7 million or 37 cents a share a year earlier. Revenue was $170.9 million, up from $170.1 million. The increase in profitability stemmed from $25 million in income from discontinued operations, up from $1.8 million a year earlier.
For the year, net income was $98.6 million or $2.18 a share, up from $83.3 million or $1.82 a share a year earlier. Revenue was $723.5 million, up from $705 million a year earlier. Again, the company reported $36.7 million in income from discontinued operations, vs. $9.6 million a year earlier.
“Throughout the past year, we have made significant strides to reposition TriMas,” said Thomas Amato, TriMas president and CEO. “In December, we completed the sale of Lamons, further focusing TriMas on our highest value proposition businesses and significantly decreasing our exposure to the oil and gas market to under 5 percent of sales. In addition to the two acquisitions in the packaging group in 2019, we also recently announced our agreement to acquire Rapak with its bag-in-box dispensing innovative product lines. Separately, we announced the acquisition of RSA Engineered Products, which expands our aerospace presence into environmental control system applications, the defense and business jet markets, and aerospace aftermarket. … In 2020, our objective remains to execute against our long-term growth strategy of operating under the TriMas business model, driving growth through innovation and capitalizing on opportunities through manufacturing efficacy, while continuing a disciplined approach to capital allocation. For the full year, we anticipate sales growth of 9 to 11 percent compared to 2019, with organic sales growth of approximately 1.5 to 2.5 percent, assuming constant currency, and free cash flow conversion greater than 100 percent of net income. We expect full year 2020 diluted EPS to range between $1.50 to $1.60 per share, an increase at the midpoint of approximately 7 percent compared to 2019. We remain excited about our prospects for the future.”
TriMas reported a sales increase of 4.9 percent in the fourth quarter for its packaging segment, which includes the Rieke, Taplast and Stolz brands. The segment manufactures specialty dispensing and closure products for applications in the health, beauty and home care, food and beverage, and industrial packaging markets. Sales rose 6.6 percent in its aerospace segment, which includes the Monogram Aerospace Fasteners, Allfast Fastening Systems and Mac Fasteners brands. Sales fell 14.5 percent in the quarter for its specialty products segment, which manufactures steel cylinders, wellhead engines and compression systems for the industrial, aerospace, and oil and gas markets under the Norris Cylinder, Arrow Engine and Martinic Engineering brands.
In December, the company completed the sale of its Lamons business, a provider of industrial sealing and fastener solutions for the oil and gas market, for a purchase price of approximately $135 million. Its results are included in discontinued operations for all periods presented.
To listen to a replay of a conference call discussing these results, visit www.trimascorp.com or call (888) 203-1112 using replay pass code 1287708.