Global Fastener News

Aerospace Fastener Sales Rise for TriMas

Jason Sandefur

Fastener sales at TriMas Corp. increased 5.8% to $39.1 million during the second quarter of 2005. Fastener operating profit improved $5.8 million to $3.0 million from an operating loss of $2.8 million in the second quarter of 2004. After adjusting for steel price increases recovered from customers, TriMas estimated fastener sales remained flat.
Sales within our aerospace fasteners business during the quarter improved 32.2% due to an overall increase in the commercial and business jet build rates in 2005, as manufacturers and distributors replenish inventory. However, excluding the recovery of steel price increase, the company estimated Q2 sales of industrial fasteners declined approximately 10.7%, or $2.9 million, due to “reduced demand for industrial fasteners used in agriculture, heavy equipment and heavy truck as a result of customer inventory adjustments.”
Fastener sales for the first six months of 2005 gained 10% to $83.29 million, while operating profit improved to $3.8 million compared with a $4.3 million loss during the first half of 2004.
Overall TriMas sales during the second quarter increased 3.7% to $294.6 million, but net income fell 54% to $4.1 million, impacted by reduced sales volumes, increasing material costs, and pricing compression. Higher borrowing costs and currency exchange losses on inter-company loans denominated in foreign currencies also hurt the bottom line.
Excluding the impact of steel price increases recovered from customers, TriMas sales grew 1% during the quarter.
“We continued strong year-over-year earnings growth within our Industrial Specialties and Fastening Systems business segments,” CEO Grant Beard stated.
“Our restructuring initiatives are behind us, steel prices are stabilizing and we have aligned our cost structure consistent with expected customer demand levels,” Beard emphasized.
First half sales rose 7.7% to $587.4 million, while net income dropped 41% to $6.56 million. Web: trimascorp.com �2005 FastenerNews.com