Trifast Aims at Smaller U.S. OEMs

Jason Sandefur

UK-based Trifast reported pretax profit more than doubled to GBP 5.43 million (US$10.8 million) during fiscal 2007, which ended March 31. Annual revenue grew 12% to GBP 131.9 million (US$262.2m). Trifast found its strongest success in Europe and Asia, while U.S. sales were “disappointing.”
“Trifast’s acquisition of a West Coast distributor business in the late 1990’s supported the strategy of pursuing global OEM customers,” CEO Steve Auld explained. “Much of the larger business has since evaporated as these major OEMs opted for the use of contract manufacturers predominantly sited in Asia.
“Trifast subsequently achieved outstanding success by following this business to Asia,” Auld noted. In the U.S. Trifast plans to concentrate on its existing small OEM customer base and the foundation of a distributor network of proprietary products, hoping “a more narrowly focused OEM sales activity, in conjunction with a distributor based products sales initiative, provides the best prospect for future success” in the U.S.
During fiscal 2007 Trifast completed the integration of TR Fastenings Ltd. and Serco-Ryan, while deciding to close Trifast’s French operation. Restructuring costs reached GBP 2.89 million (US$5.74m). Eight sites were “closed or significantly restructured” in Europe.
“In consolidating our UK businesses following the acquisition of Serco-Ryan we have seen our UK operating profits grow by 55% despite a decline in sales resulting from the continued downsizing of the U.K. automotive sector,” Auld emphasized.
Trifast has also expanded capacity at its three sites in Asia as regional sales grew 21% and operating profit jumped 43%. The company said it is looking into establishing a facility in India. Web: trfastenings.com �2007 FastenerNews.com