TriMas Corp. Reports 20.7% 2009 Sales Drop
TriMas Corp. Tuesday (March 2) announced financial results for the quarter and full year ended Dec. 31, 2009.
For the quarter, the company reported sales from continuing operations of $191.1 million, a decline of 9.9% compared to the fourth quarter of 2008. The company reported a fourth quarter loss from continuing operations of $8.9 million, compared to loss from continuing operations of $149.8 million in fourth quarter 2008.
For the year ended Dec. 31, 2009, the company reported sales from continuing operations of $803.7 million, a 20.7% decline compared to 2008. The company reported full year income from continuing operations of $12.7 million, compared to a loss from continuing operations of $124.1 million in 2008.
Excluding Special Items for both periods, 2009 income from continuing operations would have been $14.9 million, as compared to 2008 income from continuing operations of $28.4 million, or $0.85 per diluted share.
As for TriMas’s Cequent Performance Products Division, sales for the fourth quarter increased 16% compared to the year ago period, resulting from increases in sales in the Australia/Asia Pacific and retail businesses and the favorable impact of currency exchange. Sales for the year decreased 12.1% compared to the year ago period due to weak, but improving, consumer demand for heavy-duty towing, trailer and electrical products and the unfavorable effects of currency exchange, partially offset by an increase in sales in the retail business and a slight improvement in sales in the Australia/Asia Pacific business.
Operating profit for the quarter and year improved as a result of cost reductions implemented as part of the company’s profit improvement plan, partially offset by lower sales volumes and lower absorption of fixed costs. Due to the cost reduction actions, operating profit margin for the full year 2009 improved approximately 240 basis points compared to 2008. The company continues to aggressively reduce fixed costs, decrease working capital and leverage strong brand positions for increased market share.
The company is estimating 2010 sales to increase 4-7%, compared to 2009. The company expects full-year 2010 diluted earnings per share (EPS) from continuing operations to exceed $0.60 per share, in comparison to $0.43 per share in 2009, excluding Special Items in both periods. In addition, the company expects its operating profit margin to improve by 60 to 100 basis points, compared to 2009, excluding Special Items, and Free Cash Flow to be in excess of $30 million.
“While we expect only a modest recovery in our end markets during 2010, we expect our planned growth and productivity initiatives to expand margins and accelerate our ability to grow earnings during the year,” said David Wathen, president and CEO. “The foundation we laid in 2009 will enhance our results in 2010, and provide for even greater margin expansion as normal end market demand returns.”