BLOOMFIELD HILLS–TriMas (Nasdaq: TRS) announced revenue of $215.5 million in the first quarter ended March 31, down 3.9 percent from $224.3 million in the first three months of 2022.
The company said growth in TriMas’ Aerospace and Specialty Products groups, and acquisition-related sales, were more than offset by the anticipated lower demand for TriMas Packaging’s products primarily used in certain consumer goods and industrial applications, and the impact of unfavorable currency exchange.
Net income was $4.9 million or 12 cents per share, down from $14.2 million, or 33 cents a share, a year earlier.
“Our first quarter results came in largely as anticipated, with pockets of strength and strong backlogs in certain of our end markets,” said Thomas Amato, TriMas president and CEO. “Our Specialty Products group, following our focused improvement efforts and factory floor investments, leveraged strong market demand to achieve near-record quarterly margin levels, while our TriMas Aerospace group’s sales and backlogs were supported by increased aerospace production demand. As expected, our TriMas Packaging group experienced sustained demand pressures as some of our larger customers continued to work through high inventory levels. We are actively engaging with our customers as they evaluate their longer-term demand requirements in this current environment, while also continuing to assess and implement infrastructure cost efficiencies where practical. Looking ahead to the remainder of 2023, notwithstanding a more cautious near-term outlook, our ability to generate compelling annual cash flow allows us to continue to invest in innovation, pay a dividend, opportunistically repurchase shares and pursue acquisitions. Additionally, we have made significant strides in our ESG journey, and remain committed to continuously enhancing our sustainability strategy and maximizing our positive impact. We are confident that TriMas’ diversified end market model, focus on innovation, cash generation profile and dedicated global workforce will continue to provide value-creating opportunities.”
During first quarter 2023, the company used $37.8 million for acquisitions and repurchased 350,862 shares of its outstanding common stock for $10.4 million. As of March 31, 2023, $95.3 million remained available under the company’s repurchase authorization. TriMas also paid a quarterly cash dividend of 4 cents per share of stock on March 9.
The Company reported net cash provided by operating activities of $9.7 million for first quarter 2023, compared to $5.7 million in first quarter 2022. As a result, the Company reported a Free Cash Flow use of $3.1 million for first quarter 2023 compared to a use of $1.9 million in first quarter 2022.
Overall, TriMas’ Packaging segment net sales for the first quarter decreased 16.1% compared to the year ago period, as sales from recent acquisitions were more than offset by lower demand, most notably for certain product lines for the consumer and industrial submarkets.
TriMas’ Aerospace segment net sales for the first quarter increased 12.3% compared to the year ago period, driven by increased aerospace production demand. TriMas’ Specialty Products segment net sales increased 19.2% compared to the year ago period, primarily due to higher demand for cylinders used in construction and HVAC applications, as well as increased sales of stationary power generation and compressor units, as demand has increased in North American energy markets.
To listen to a replay of a conference call discussing these results, call (877) 660-6853 in the United States and Canada or (201) 612-7115 elsewhere, using pass code 13737667.
TriMas manufactures products primarily for the consumer products, aerospace and industrial markets through its TriMas Packaging, TriMas Aerospace and Specialty Products groups. It has approximately 3,500 employees in 13 countries. More at www.trimascorp.com.