TriMas Credit Rating Dips
TriMas Credit Rating Dips
Jason Sandefur
Standard & Poor’s lowered its corporate credit ratings on TriMas Corp., citing higher-than-expected debt at TriMas and weaker earnings. TriMas’ total debt is reportedly about $780 million, roughly six times the company’s annual earnings.
Like other auto component suppliers, TriMas is struggling with rising steel costs. Rising steel prices trimmed TriMas earnings by an estimated $12 million for the first nine months of 2004, the Detroit Free Press reports. TriMas recorded a 14% sales increase to $802.2 million during the first three quarters of 2004, while operating income grew 67% to $72 million. Profit reached $13.35 million, compared with a loss of $4.8 million during the first three quarters of 2003.
TriMas filed Securities and Exchange Commission forms in March 2004 for an initial public offering. The Bloomfield Hills, MI-based manufacturer has not yet held the IPO due to unfavorable market conditions, S&P reports. According to SEC documents, TriMas expects to raise about $164 million when it unveils its IPO. The company intends to use the proceeds to pay down long-term debt.
TriMas manufacturers fasteners under two firms: Lake Erie Products and Monogram Aerospace Fasteners, which develops blind bolt fasteners for the aerospace industry. Web: trimascorp.com �2005 FastenerNews.com
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