TriMas sales rise 7.7% in third quarter

BLOOMFIELD HILLS–TriMas Corp. reported sales of $235.3 milllion in the third quarter ended Sept. 30, up 7.7 percent from the same quarter a year earlier. Net income was $16.5 million, or 40 cents a share, up from $13.3 million or 32 cents a share a year earlier.

The company said growth in its TriMas Aerospace and TriMas Specialty Products business groups, along with acquisition-related sales, more than offset lower market demand for TriMas Packaging’s dispensing and closure products.

For the nine months, sales were $684 million, up from 680.5 million in the first nine months of 2022. Net income was $32.4 million, or 78 cents a share, down from $47.3 million, or $1.11 a share, a year earlier.

“Our third quarter results were catalyzed by proactive cost savings initiatives within our TriMas Packaging group and intensive operational improvements within our TriMas Aerospace group, which aided our ability to achieve adjusted diluted EPS(2) growth of 42.5% and top-line growth of 7.7%, compared to third quarter 2022,” said Thomas Amato, TriMas president and CEO. “We delivered significantly improved performance within our TriMas Aerospace group, as we made progress bringing our critical sub-supply and skilled labor constraints into better alignment with higher demand, which begins to position us well for 2024. Additionally, our TriMas Specialty Products group continued to capitalize on our earlier manufacturing investments to improve conversion. With respect to our TriMas Packaging group, we remain encouraged about our future due to the introduction of several innovative, new products, as well as the increased commercial activity underway. While we have successfully secured multiple meaningful programs, and are diligently working to close others, the benefits from these endeavors will not materialize until 2024, considering the current time of year. Although the market recovery has proven to be longer than we anticipated at the start of the year, our cost savings initiatives have significantly bolstered our operating margins compared to the previous year, although we are still operating below the group’s full potential, especially in a higher-demand environment.”

During the first nine months of 2023, the company paid cash of $77.3 million for acquisitions and repurchased 462,388 shares of its outstanding common stock for $13.4 million, further reducing net shares outstanding by approximately 0.7 percent. TriMas also paid a quarterly cash dividend of $0.04 per share of TriMas Corp, stock during each of the first three quarters of 2023, as well as declared a $0.04 per share dividend to be payable on November 9, 2023.

TriMas Packaging group’s net sales for the third quarter were $116.5 million, a decrease of 10.2% compared to the year ago period, as organic growth within its Life Sciences business and sales from the recent acquisition were more than offset by lower market demand, as anticipated, for dispensers used in personal care applications and closures used in food and industrial applications. TriMas Aerospace group’s net sales for the third quarter were $67.6 million, an increase of 48.8% compared to the year ago period, primarily driven by increased aerospace production demand, reduced production constraints and acquisition-related sales. Third quarter operating profit and the related margin percentage increased, primarily due to operational excellence initiatives, higher sales levels and a favorable product sales mix. TriMas Specialty Products group’s net sales were $51.3 million, an increase of 18.1% compared to the year ago period, primarily due to higher demand for steel cylinders used in construction and HVAC applications, as well as increased sales of stationary power generation and compressor units, as demand for locally-provided products increased in certain U.S. industrial markets. Third quarter operating profit and the related margin percentage increased, as a result of prior operational excellence actions, combined with a robust demand environment through the third quarter.

Amato said the company still expects to achieve 2023 adjusted diluted earnings per share of $1.80 to $1.95.

To listen to a conference call discussing these results, call (877) 660-6853 in the United States and Canada or (201) 612-7415 elsewhere, using the meeting ID of 13741938.

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