TriMas profit tumbles due to one-time property sale a year ago

BLOOMFIELD HILLS–The diversified manufacturer TriMas Corp. (NYSE: TMS) reported net income of $7.9 million or 19 cents a share for the fourth quarter, down from $18.8 million or 45 cents a share in the fourth quarter of 2022. Revenue was $209.6 million,

The culprits: higher cost of sales ($166.4 million fs. $157.7 million), a $1.1 million charge for impairment of intangible assets, and a rise in interest expense from $2.6 million to $4.3 million. There was also a one-time gain on property sales in 2022 of $17.8 million.

“As we concluded 2023, we were pleased by the ongoing upward trend in our order intake, sales and conversion within our TriMas Aerospace group, and also by our TriMas Packaging group’s gains in order intake momentum,” said Thomas Amato, TriMas president and CEO. “While this positive momentum in our two largest segments was encouraging, demand in our Specialty Products businesses softened well beyond our expectations, as customers postponed their capital expenditure purchases to rebalance inventory levels toward year end.”

For the full year, the company posted net income of $40.4 million or 97 cents a share, down from $66.2 million or $1.57 a share. Revenue was $893.6 million, up from $883.8 million in 2022.

Fourth quarter sales in TriMas Packaging were $113.6 million, up 7.5 percent from fourth quarter 2022. Operating profit declined as a result of “restructuring” costs. TriMas Aerospace sales were $64 million, up 26.1 percent from the year-ago period. And TriMas Specialty Products sales for the quarter were $32 million, down 31.8 percent from a year earlier, as customers deferred capital expenditures. In addition, the company has initiated a sales process for its Arrow Engine business, which would mean an exit of its presence in the oil and gas market.

The company provided 2024 guidance of a 5 to 8 percent sales increase and adjusted diluted earnings per share to $1.95 to $2.15. Adjusted earnings excludes one-time items such as business restructuring and severance costs, impairment of intangible assets, merger and acquisition costs, foreign exchange charges, pension settlement costs, and changes in liability estimates for asbestos-related costs.

To listen to a replay of a conference call discussing these results, call (877) 660-6853 in the United States and Canada or (201) 612-7415 elsewhere, using conference ID 13744326, or visit the investors section of www.trimas.com.

TriMas manufactures a diverse set of products primarily for the consumer products, aerospace and industrial markets through its TriMas Packaging, TriMas Aerospace and Specialty Products groups. It has about 3,400 employeees in 13 countries.

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