Global Fastener News

TriMas To Sell Lake Erie Products

Jason Sandefur

Faced with continued losses, TriMas Corp. announced it plans to sell its industrial fastener business, Lake Erie Products. The Bloomfield, MI-based company took a $41.6 million impairment charge in the fourth quarter of 2005 related to its listing of Lake Erie as discontinued operations.
Lake Erie Products, which includes Entegra Fastener and Lake Erie Screw, manufactures small specialty and custom fasteners and build-to-print large-diameter fasteners. The company operates facilities in Frankfort, IN, where it is headquartered; Wood Dale, IL; Lakewood, OH; and Livonia, MI.
CEO Grant Beard described the sale process as “well under way.”
In 2005 TriMas sales from discontinued operations, including industrial fasteners, dropped 6.2% to $98.9 million. Segment earnings were a loss of $5.2 million, not including the impairment charge.
Lake Erie was founded in 1946 by John Wasmer Sr. In 1986 Lake Erie was sold to form TriMas Corp., which later became part of publicly held MascoTech Corporation. Privately held Heartland Industrial Partners acquired MascoTech in 2000. Web: lepinc.com
TriMas plans to keep its aerospace fastener business, Monogram Aerospace Fasteners Inc., which saw continued success in 2005.
In 2003 TriMas created its Fastening Systems Group with a new management team that consisted of Terry Campbell as president, Dave Gibson as vice president/operations, Ed Zelaski as sales & marketing vice president, and Jim Zils as vice president of engineering & quality assurance.
The fastener group consisted of Lake Erie Products, which includes Entegra Fastener and Lake Erie Screw, and Monogram Aerospace Fasteners Inc., along with the Metaldyne auto fasteners business.
The group continues its success with aerospace fasteners, however. Fastening Systems sales grew 24.3% to 62.73 million in 2005, while operating profit soared 75% to $15.63 million. Fourth quarter fastener sales increased 31% to $15.98 million, with operating profit jumping 41.6% to $3.8 million.
Beard said material costs put “tremendous pressure” on overall earnings, with material margins declining by $41 million due to steel and resin cost hikes. Overall sales for TriMas improved 7.5% to $1.01 billion in 2005, but operating profit dipped 5.2% to $84.1 million. TriMas recorded a $45.88 million loss for the year. Q4 sales grew 6.35 to $227.4 million, while operating profit nearly doubled to $8.8 million. TriMas reported a $9.4 million loss during the period. Web: trimascorp.com �2006 FastenerNews.com