TriMas Credit Rating Drops

Jason Sandefur

Standard & Poor”s lowered its corporate credit rating for 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 automotive 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 SEC forms in March 2004 for an initial public offering. The Bloomfield Hills, MI-based manufacturer has delayed its IPO due to unfavorable market conditions, S&P reports.
According to SEC documents, TriMas expects to raise about $164 million when it goes public. The company plans to pay down long-term debt with the proceeds.
TriMas manufacturers fasteners under two firms: Lake Erie Products and Monogram Aerospace Fasteners, which develops blind bolt fasteners for the aerospace industry. \ �2005 FastenerNews.com