BLOOMFIELD HILLS—TriMas Corp. (NASDAQ: TRS) reported net income of $13.1 million or 30 cents a share in the first quarter, unchanged from a year earlier. Revenue was $206.7 million, up from $182.8 million in the first quarter of 2020.
The company said sales growth in its packaging division and the impact of recent acquisitions were partially offset by the impact of weaker demand in the company’s aerospace and industrial businesses resulting from the effects of the COVID-19 pandemic.
Adjusting for so-called “special items,” mostly related to realignment and merger-and-acquisition costs, first quarter 2021 adjusted operating profit was $26.6 million, a 21.3% increase compared to $22.0 million in the prior year period.
“Overall, we are off to an encouraging start to 2021 with first quarter results that exceeded our initial expectations,” said Thomas Amato, TriMas president and CEO. “During the first quarter, we achieved a sales growth rate of 13.1%, and adjusted diluted earnings per share of 40 cents, resulting primarily from the positive momentum in TriMas’ packaging segment and better-than-expected performance in the TriMas’ specialty products segment. We demonstrated yet again TriMas’ ability to navigate varying economic cycles, while delivering strong financial performance through our multi-industry family of businesses and our dedicated global team.
The company’s Packaging business, which represents about 65% of TriMas sales, saw a sales increase of 32%, primarily as a result of higher demand for dispensing pumps and closure products sold into applications that help fight the spread of germs or are used in cleaning. Higher sales of products used in food-and-beverage and industrial applications, as well as acquisition-related sales, also contributed to the increase. First quarter operating profit increased, as the impact of higher sales more than offset a less favorable product sales mix and higher input costs.
The Aerospace business, 21% of TriMas sales, saw a decrease of 8.8% in sales, primarily due the impact of significantly lower air travel and reduced commercial and business jet production as a result of the global pandemic, partially offset by the sales increase related to the acquisition of RSA in February 2020. First quarter operating profit and the related margin decreased due to the reduced sales and lower absorption of fixed costs, as well as the higher amortization expense from intangible assets related to the acquisition.
The Specialty Products business, 14% of TriMas sales, saw an 11.2% decrease in sales, the result of lower steel cylinder demand in the construction and packaged gas end markets, and low demand for oil and gas products, all related to the impact of the pandemic. First quarter operating profit and the related margin increased as a result the positive impact of previous realignment and factory floor improvement actions implemented in the businesses.
Given the continued market and related demand uncertainties arising from the global COVID-19 pandemic, TriMas said it is providing second quarter outlook only at this time, with the objective of reverting to full year outlook as the impacts of the pandemic and related economic recovery are better understood and visibility improves. For the second quarter TriMas expects sales of $205 million to $223 million, and adjusted earnings per share of 50 to 57 cents. Adjusted earnings per share excludes amortization expenses of acquisitions, restructuring expenses, and merger and acquisition due diligence expenses.
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 7033534.