TriMas Posts Record 3Q Sales, 42% Profit Gain
TriMas Corp. today (Oct. 27) announced record sales for its third quarter, ended Sept. 30, and a 42% increase in net income.
The Bloomfield, Mich.-based company, parent to RV supplier Cequent Performance Products, posted sales of $277.7 million, an increase of 16.8% compared to third quarter 2010. Net income for the period was $17.0 million, a 42% improvement from $12.0 million the year prior, while diluted earnings per share from were 49 cents as compared to 35 cents.
During the third quarter of 2011, the company reported diluted earnings per share of 3 cents related to its precision cutting tool and specialty fitting lines of businesses now classified as discontinued operations and assets held for sale. Third quarter 2011 net income per diluted share was 52 cents, an increase of 40.5% as compared to 37 cents in third quarter 2010.
• Trimas reported sales growth in all six segments compared to third quarter 2010.
• Amended its accounts receivable facility with improved pricing and terms, which, in conjunction with the recent refinance of the company’s U.S. credit facilities, will continue to reduce interest costs, extend maturities and improve financial and operating flexibility.
• Completed the acquisition of Innovative Molding, a technology leader in the design, lining and manufacturing of specialty plastic closures for bottles and jars for the food and nutrition industries.
• Completed two small, bolt-on acquisitions to extend the company’s sales and manufacturing footprint into India and South Africa.
“We achieved our sixth consecutive quarter of double-digit sales and earnings growth, delivered by our continued attention to new product innovation, market share gains, geographic expansion and successful bolt-on acquisitions,” said David Wathen, TriMas president and CEO. “We remain focused on our productivity and lean initiatives, and we will use these savings to fund growth, offset inflation and expand margins. As a result of our 16.8% sales growth and productivity initiatives, we also achieved record third quarter earnings per share from continuing operations of $0.49, an increase of approximately 40% as compared to third quarter 2010.
“We remain positive about TriMas’ ability to outperform the economy, create sustainable operating leverage and generate strong cash flow. Our diverse product portfolio and end markets serve us well, especially during times of economic uncertainty. While we experienced some softness in packaging, which we quickly responded to, we experienced continued strength in our energy and aerospace-related markets. With the uncertain economic environment, we are not assuming any economic tailwinds as we model 2012. We believe we will have to earn every bit of growth and earnings improvement achieved. We are well-positioned to execute on our strategic imperatives throughout the remainder of 2011 and achieve double-digit EPS growth in 2012.”
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