BLOOMFIELD HILLS—Officials at the Bloomfield Hills diversified manufacturer TriMas Corp. (Nasdaq: TRS) Thursday reported net income of $19.6 million or 45 cents a share in the third quarter, compared to a loss of $100.9 million or $2.32 a share in the third quarter of 2020. Revenue was $222.4 million, up 11.5% from $199.5 million a year earlier.
The main reason for the improvement was a one-time non-cash charge of $134.6 million for intangible assets in the company’s aerospace segment recognized in the third quarter of 2020.
The company also announced an “adjusted operating profit” excluding one-time items of $31.6 million, up 6.8% from $29.6 million in the third quarter of 2020, primarily the result of higher overall sales and improved profit margin within the specialty products segment, partially offset by higher input costs in the third quarter of 2021.
For the nine months, net income was $44.5 million or $1.03 a share, compared to a loss of $103.5 million or $2.37 a share in the first nine months of 2020.
“Overall, we are pleased with our third quarter results and our continued positive momentum,” said Thomas Amato, TriMas president and CEO. “Our business profile, which is based on providing innovative products to a broad set of customers in diverse end markets, has continued to deliver strong results. Our dedicated global team remains committed to achieving customer satisfaction and high performance. During the third quarter, we achieved sales growth of 11.5% and adjusted diluted EPS(1) of $0.57, an increase of 9.6% as compared to the prior year. Our solid execution in the quarter was complemented by our balanced approach to capital allocation and disciplined management of our balance sheet. Last week, we were excited to announce the initiation of a dividend program, and believe our capital structure enables us to continue to invest in organic growth initiatives and strategic acquisitions, while also returning capital to shareholders through share repurchases and now dividends.”
The company also raised its 2021 free cash flow outlook to 110% of net income (from 100% previously) and reaffirmed its full year 2021 sales and earnings per share outlook midpoints. Company officials say they now anticipate 2021 sales growth of 10-13%, compared to a prediction of 9-14% previously, and adjusted earnings per share of $2.18 to $2.27, up from a prediction of $2.15 to $2.30 a share previously. TriMas also announced its first-ever dividend of 4 cents a share, payable Nov. 10 to shareholders of record as of Nov. 3.
In the third quarter, the company’s packaging segment saw a 2.1 percent sales increase, while operating profit decreased due to higher input costs. Sales in the company’s aerospace segment rose 18.9 percent, while operating profit rose. In the company’s specialty products business, sales jumped 50.3 percent due to higher demand for steel products used in construction and HVAC applications.
To listen to a conference call discussing these results, call (888) 203-1112 and enter replay pass code 5060586. More at www.trimascorp.com.