TriMas Reports Record Sales for First Quarter
Bloomfield Hills, Mich.-based TriMas Corp., parent to industry supplier Cequent Performance Products, announced record revenue for its first quarter, ended March 31, as sales rose 13.5% to $337.8 million from $297.6 million in the year-ago period.
During the first quarter, sales increased in five of the six reportable segments, primarily as a result of additional sales from bolt-on acquisitions, market share gains, new product introductions and geographic expansion as compared to first quarter 2012.
Excluding noncontrolling interests, first-quarter net income was $13.2 million, or 33 cents per diluted share, compared to $12.5 million, or 36 cents per diluted share, during first quarter 2012.
“Our record first quarter sales demonstrates our continued ability to successfully execute on our growth strategies,” said President and CEO David Wathen. “In the midst of an uncertain global economic environment, we continue to identify the bright spots where we believe we can capture growth for our businesses through product innovation, market share gains and geographic expansion.
“Looking forward, our full year 2013 view is essentially unchanged from our previous guidance. We remain committed to TriMas’ ability to outperform the economy, with expected 2013 sales growth of 6% to 8%, as compared to 2012.”
Other highlights from the quarter included:
• Reduced interest expense by more than 50% as compared with first quarter 2012, resulting from a reduction in overall interest rates due to the 2012 redemption of the company’s 9 3/4% senior notes and the refinancing of the credit facilities.
• Completed three additional bolt-on acquisitions year-to-date to expand existing product offerings, gain access to new customers and end markets, expand the geographic footprint internationally, and capitalize on scale and cost efficiencies.
• The company reported operating profit of $23.7 million in first quarter. Operating profit and the related margin percentage were impacted by costs related to recent acquisitions including purchase accounting adjustments, higher costs associated with global growth initiatives, new plant and equipment ramp-up costs and higher costs associated with long-term incentive programs, with the majority of these incremental costs included in selling, general and administrative expenses. The company continued to generate significant savings from capital investments, productivity projects and lean initiatives, which contributed to the funding of growth initiatives.
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