Revenue during the period grew to $367.7 million, an increase of 8.9% compared to first quarter 2013. Net income attributable to TriMas totaled $18.6 million, or $0.41 per diluted share, as compared to income of $13.2 million, or $0.33 per diluted share, a year ago.
“We are off to a good start in 2014 as our team is focused on the many growth and margin improvement programs in each of our businesses and headquarters,” said David Wathen, TriMas president and CEO. “These initiatives contributed positively to our quarter, and will also position TriMas for continued sales and earnings growth, driving additional shareholder value into the future.”
The company’s Cequent division, which supplies the RV industry, saw first quarter sales that were relatively flat compared to the year ago period. TriMas noted that “increased sales within the retail channel were offset by a decrease in sales in the aftermarket channel related to higher than normal sales levels in the first quarter of 2013 as customers built safety stock in anticipation of the move of production to lower cost country facilities.” First quarter operating profit and the related margin percentage were also relatively flat compared to the prior year period.
Other highlights included:
• TriMas reported operating profit of $32.6 million in first quarter 2014, an increase of 37.3% as compared to first quarter 2013. The company continued to generate significant savings from capital investments, productivity projects and lean initiatives, which contributed to the funding of growth initiatives.
• Reduced interest expense by more than 30% as compared to first quarter 2013. In October 2013, the company entered into new senior secured credit facilities, which reduced interest rates, extended maturities and increased available liquidity. Also in April 2014, TriMas amended its $105.0 million accounts receivable facility to lower rates and extend the maturity until October 2018.
• Continued to invest in a lean and flexible manufacturing footprint to optimize manufacturing costs long-term, add needed capacity, enhance customer service and support future growth.
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