TriMas Corp., parent to Cequent Performance Products, said its third-quarter earnings jumped more than 50% as it benefited from acquisitions and lower interest expenses.
The company reported that it has been working to make its manufacturing operations more efficient, while at the same time absorbing several small acquisitions. It announced another acquisition on Monday, paying $34 million for Mac Fasteners Inc. Mac makes stainless steel aerospace fasteners used by a variety of manufacturers and aftermarket repair companies.
Third-quarter net income rose 53% to $28.6 million, or 71 cents per share, from $18.7 million, or 48 cents per share, in the 2012 third quarter. Excluding costs related to restructuring and the sale of a business, results came to 64 cents per share. Revenue rose 6% to $355.6 million.
The company now expects sales for the full year to rise 8% to 10% from 2012, up from a prior outlook for a 6% to 8% increase. Based on sales of $1.27 million last year, that implies guidance for sales of $1.37 million to $1.4 million.
Cequent Performance Products Inc. (CPP) partnered with Habitat for Humanity on Tuesday (Sept. 10) to create a safe and affordable home for an area family, according to a press release. CPP, a subsidiary of TriMas Corp., was part of a week-long blitz to refurbish the location.
“CPP came out and worked on the home for one day this week,” says Sara Piatt, human resources representative. “Other TriMas employees will volunteer at the home for the remainder of the week.”
The company had approximately 20 volunteers covering various home improvement tasks. Multiple teams worked to paint both the interior and exterior of the house. Others helped to construct walls and rebuild a breezeway. The day ended with assembly of kitchen cabinetry.
“We recently renovated our headquarters and donated a portion of our kitchen appliances to Habitat,” says Piatt. “It’s great to be able to come full circle and support the opportunity for homeownership for families in need.”
Per their mission statement, Habitat for Humanity provides decent, safe, and affordable places to live. Houses are built and repaired all over the world using volunteer labor and donations. To learn more visit www.Habitat.org.
TriMas Corp., parent to Cequent Performance Products, reported record revenue for its fiscal second quarter, ended March 31. In its earnings report, the Bloomfield Hills, Mich.-based firm also announced the acquisition of a towbar manufacturer located in Germany and Finland.
For the quarter, TriMas posted sales from continuing operations of $378 million, an increase of 11.7% from $338.4 million in the prior-year period. Net income from continuing operations was $27.8 million, or 66 cents per share, compared with $17.2 million, or 45 cents per share, a year ago.
The company’s Cequent America unit saw a 7% increase in sales compared with the year-ago period, resulting primarily from increased sales within the original equipment, aftermarket and retail channels, as well as the sales related to the July 2012 acquisition of Engetran in Brazil.
Highlights from the quarter included:
• Completed five bolt-on acquisitions to expand and globalize existing product offerings.
• Reduced interest expense by more than 45% as compared with second quarter 2012.
• Continued to invest in a flexible manufacturing footprint to optimize manufacturing costs long-term, add necessary capacity, enhance customer service and support future growth.
“In the midst of a challenging global economic environment, we continue to identify the bright spots and successfully execute on new product introductions, geographic expansion and market share initiatives, as well as leverage our recent bolt-on acquisitions,” said David Wathen, TriMas president and CEO. These initiatives have contributed to our year-over-year sales increases in five of our six segments during the second quarter. We also continued with footprint consolidation projects within our Cequent segments, moving toward more efficient and flexible manufacturing facilities.
Mark Zeffiro, executive vice president and CFO, added, “As we look to the second half of the year, we maintain a conservative macroeconomic outlook, while remaining confident in our ability to deliver our previous guidance for full year 2013.”
To view the entire report click here.
TriMas Corp, parent to Cequent Performance Products, will report its second quarter earnings on July 25. The company will also host a conference call 10 a.m. Eastern.
To participate on the earnings conference call, dial (888) 523-1228 (Conference ID #5087909) and ask to be connected to the TriMas second quarter 2013 earnings conference call. The conference call will also be simultaneously webcast via TriMas’ website at www.trimascorp.com, under the “Investors” section, with an accompanying slide presentation.
If you are unable to participate during the live teleconference, a replay of the conference call will be available beginning July 25 at 3 p.m. Eastern through Aug. 1. To access the replay, dial: (888) 203-1112 (Replay Passcode #5087909) or visit the “Investors” section of the company’s website.
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.
To view the entire report click here.
TriMas Corp. announced that Heartland Industrial Associates LLC. has agreed to sell 1.5 million shares of its common stock to Goldman, Sachs & Co. as the sole underwriter in the registered public offering of those shares.
All net proceeds from the sale of the common stock will be received by the selling stockholder. TriMas Corp. will not receive any of the proceeds. The total number of outstanding shares of TriMas Corp.’s common stock will not change as a result of this offering, according to the company.
The shares are being sold by the selling stockholder pursuant to an effective shelf registration statement. Goldman, Sachs & Co. may offer the shares of common stock from time to time for sale in one or more transactions on the NASDAQ Global Market, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices, states a press release from TriMas.
TriMas Corp., parent to Cequent Performance Products, incurred a loss for the fourth quarter versus a profit last year, in spite of a revenue rise.
RTT News reported that the firm suffered from increased expenses for the quarter which upset the rise in revenue, further exacerbated by debt extinguishment costs which led it to post a loss for the period.
For the quarter, the firm posted a net loss of $13.94 million compared with a profit of $13.25 million last year. On a per share basis, the firm posted loss of $0.35 versus a profit of $0.38 last year.
Excluding special items related to business restructuring costs, debt extinguishment costs and tax restructuring, the company reported income from continuing operations of $0.33 per share.
Net sales for the period rose to $301.04 million from $259.65 million last year, which the company attributed to additional sales from bolt-on acquisitions, market share gains, new product introductions and geographic expansion as compared to fourth quarter 2011. Analysts were looking for revenue of $291.23 million for the quarter.
The firm suffered from debt extinguishment costs of $40.25 million for the three-months versus none last year.
Looking forward, for the full-year, the firm sees earnings per share from continuing operations to be between $2.15 and $2.25, excluding any future events that may be considered special items and revenue to rise between 6% and 8% compared to 2012.
United Steelworkers Local 9550 voted Friday (Feb. 22) to accept what union representatives are calling a retention bonus from Cequent Performance Products, according to a report by the Goshen News. Mike O’Brien, director of United Steelworkers Sub District 4, said the union will not be going to arbitration.
Cequent parent company Trimas Corp. announced in November it would lay off 450 workers at the Goshen, Ind., Cequent plant. Company officials said they were moving the facility’s operations to Reynosa, Mexico, to cut down on shipping costs since it has other plants in Texas and Mexico.
The “retention bonus” amounts to a $3.5 million package with another month of insurance for workers and “a payment of $500 for those on the low end with less than a year in seniority to $36,000 for the top end and it depends on how long the others have been there. They will be paid within that range,” O’Brien said.
Cequent officials plan to close the Goshen plant at the end of this year. The first layoffs were set to take place Friday. The work force will be down to half after July, and the plant will remain open and operating until December.
The immediate fate of nearly 350 members of the United Steelworkers at the Cequent Performance Products plant in Goshen, Ind., is in their own hands.
The South Bend Tribune reported that on Friday (Feb. 22), members of USW Local 9550 will vote on whether to accept a closure offer from Cequent, which is moving its plant to Mexico, or reject it and go to arbitration.
If workers reject the offer, an arbitration hearing is slated for April 18-19, according to Mike O’Brien, United Steelworkers Sub District 4 director.
Cequent’s parent Trimas Corp. officially announced in late November it would lay off 450 employees, almost 75% of them union workers. At the time, the company said it was moving its operations to Reynosa, Mexico, to reduce shipping costs since it has other plants in Texas and Mexico.
The company makes parts for the automotive and recreational vehicle industries.
In January, U.S. District Court Judge Robert L. Miller Jr. ruled against the union’s attempt to be granted a preliminary injunction that would have prevented Cequent from moving equipment out of its Goshen plant in preparation for its move to Mexico.
However, Miller did affirm a previous ruling that the dispute over the company being able to outsource jobs while laying people off was subject to arbitration.
The company has informed the court that the Goshen facility is not scheduled to close permanently until the end of this year, and that the first layoffs will not occur until Friday. In addition, the company said more than half the employees will remain through the end of June and the remainder will be let go in December.
O’Brien said he won’t try to sway union members either way on the vote.
“There is no such thing as a guarantee,” O’Brien said regarding winning in arbitration. “While we feel confident about our case, we think membership should make that decision, and I am not going to push them one way or the other.”
The union will hold the vote in the Masonic Temple in Goshen, with the results expected sometime between 6 p.m and 7 p.m. Friday.
Despite losing one battle Wednesday (Jan. 31), United Steelworkers Local 9550 still plans to fight the war as the union tries to save 450 jobs at the Cequent Performance Products plant in Goshen, Ind.
In fact, they won another battle in the ruling handed down by Judge Robert L. Miller Jr. Wednesday in U.S. District Court Northern District of Indiana. Miller ruled against the union’s attempt to be granted a preliminary injunction that would have prevented Cequent from moving equipment out of its Goshen plant in preparation for its move to Mexico.
“Obviously we are disappointed in that portion of the ruling of the court,” said Jim Robinson, United Steelworkers District 7 director.
However, Miller did affirm a previous ruling that the dispute over the company being able to outsource jobs while laying people off, is subject to arbitration.
“The court confirmed that grievance was arbitrable, and confirmed that the arbitrator had sufficient authority to remedy what the company is doing,” Robinson said.
“So to that extent we feel positive about the decision. What we’re saying is, you are sending work to Mexico and laying people off and that violates the contract.”
Cequent officials could not be reached for comment. The company is owned by Detroit, Mich.-based Trimas Corp., which announced the layoffs in late November.
No date has been set for the arbitration hearing, said Mike O’Brien, Sub District 4 director for much of northern Indiana.
The union has received dates from the arbitrator, O’Brien said, and is waiting for the company to respond.
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