04 Aug 15. TriMas Corporation (TRS) announced financial results for the quarter ended June 30, 2015. The Company reported second quarter net sales from continuing operations of $224.9m, a slight increase as compared to second quarter 2014. The Company reported second quarter 2015 income from continuing operations attributable to TriMas Corporation of $8.5m, or $0.19 per diluted share, as compared to income of $14.4m, or $0.32 per diluted share, in the second quarter of 2014. Excluding Special Items(1), second quarter 2015 diluted earnings per share from continuing operations would have been $0.30, as compared to $0.37 in second quarter 2014, primarily as a result of the impact of lower oil prices, currency headwinds and resolution of a legal claim. These amounts exclude the results of operations of the Cequent businesses, which were spun-off as Horizon Global Corporation (HZN) on June 30, 2015, and were reclassified as discontinued operations.
TriMas Highlights
* Completed the tax-free spin-off of the Cequent businesses to TriMas’ shareholders as a newly formed company named Horizon Global Corporation.
* Amended its credit agreement to resize its credit facilities and extend maturities following the spin-off of the Cequent businesses. Used proceeds of the $214.5m dividend from Horizon Global to reduce outstanding debt.
* Continued to execute on reorganization and integration initiatives in Packaging and Aerospace, the Company’s highest margin businesses, to drive future growth and margin expansion.
* Within Engineered Components, achieved revenue and margin expansion in the Norris Cylinder business, and remained profitable in the Arrow Engine business despite a more than 60% decline in year-over-year sales due to the impact of lower oil prices.
“We are pleased to have completed the spin-off of the Cequent businesses – on time and within budget – into Horizon Global during the second quarter,” said David Wathen, TriMas President and Chief Executive Officer. “This event represents a major milestone for our company, simplifying and improving the margin profile of our portfolio, and positioning us to deliver enhanced performance over time and drive value for shareholders. We dedicated a significant amount of effort and resources to the separation; I want to thank all of our employees for their hard work and dedication during this process and for enabling such a smooth transition.”
Wathen continued, “For the second quarter, we reported net sales of $225m and EPS of $0.30(1), including a $2.8m charge to resolve an outstanding legal claim, which approximated $0.04 per share. These quarterly results were boosted by acquisition and organic growth, which was offset by the external headwinds of continued low oil prices, a strong U.S. dollar and ongoing inventory de-stocking in the aerospace distribution channel. Our productivity and margin initiatives in our packaging, aerospace and cylinder businesses drove solid margins, while absorbing external top-line pressures. Our engine and compressor business was able to remain profitable despite a 60% decline in sales year-over-year, as it realigned its cost structure to reflect current end market demand. Our greatest area of focus going forward is in our energy business, where we are assessing broader restructuring and additional cost actions given its recent performance. We are confident that continued execution on our key operational initiatives will position each of our businesses to deliver profitable growth as we pursue market opportunities and as external conditions improve.”
Wathen concluded, “We are updating our 2015 full year outlook as a result of the recent spin-off and to reflect the intensifying external headwinds we believe will continue in the second half of the year. Accordingly, we now anticipate year-over-year sales growth of up to 2%, as organic and acquisition growth of approximately 10% is expected to be mostly offset by oil price and currency headwinds. We