5/3/2016
NEWS BRIEFS
TriMas Sales Weaken Amid Energy Slowdown
TriMas reported first quarter net sales fell 9.5% to $202.9 million. “The positive impacts of a recent acquisition and organic initiatives were more than offset by sales declines primarily resulting from the weakness in the energy-facing end markets, lower Aerospace sales and the impact of unfavorable currency exchange,” the company stated.
Aerospace segment sales, including fasteners, decreased 11.5% to $40.5 million in Q1 “as a result of lower demand from larger distribution customers, as well as lower sales to OE customers due to manufacturing constraints.”
Q1 operating profit fell to $3.5 million “due to the lower sales levels and related operating leverage, a less favorable product mix, and production and machined components acquisition integration costs and inefficiencies.”
First quarter Energy segment sales, including fasteners, decreased 12.5% to $44.7 million “primarily due to reduced demand levels from upstream oil and gas customers related to lower oil production activity, lower sales from international branches due to restructuring activities in those regions, and the impact of unfavorable currency exchange.” Segment operating profit declined to a $3.1 million loss “as the cost savings achieved due to the restructuring and cost reduction initiatives were more than offset by the impact of the reduced sales levels and related lower fixed cost absorption.”
TriMas continues to restructure this business to improve its cost structure, including consolidating certain facilities, starting up a lower cost manufacturing facility in Reynosa, Mexico, and adding “experienced resources to the leadership team.”
In April TriMas appointed Marc Roberts as president of its Energy segment.
Consisting of the Houston-based Lamons business, the Energy segment designs, manufactures and distributes metallic and non-metallic gaskets, bolts, industrial fasteners and specialty products for the global petroleum refining, petrochemical, oil field and industrial markets.
Bloomfield Hills, MI-based TriMas also provides fasteners through its Aerospace segment, which consists of Allfast Fastening Systems, Monogram Aerospace Fasteners, Mac Fasteners, and Martinic Engineering.
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• TriMas Names New Energy Segment President
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