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Sep 30, 2021
TriMas Q3 2021 Earnings Report
Delivered solid sales and earnings growth and recently initiated dividend program.
Key Takeaways
TriMas reported an 11.5% increase in third-quarter net sales, driven by organic growth, acquisition-related sales, and favorable currency exchange. The company's operating profit increased significantly due to the absence of prior-year impairment charges. Adjusted diluted EPS increased by 9.6% to $0.57. A quarterly dividend program was initiated, and the full-year Free Cash Flow outlook was raised.
Increased third quarter net sales by 11.5%, with record third quarter sales in TriMas' Packaging segment
Leveraged increased sales to nearly double year-over-year operating profit in the Specialty Products segment
Reported diluted EPS of $0.45, while adjusted diluted EPS increased by 9.6% to $0.57
Added quarterly dividend program to the Company's balanced, long-term capital allocation strategy
Revenue by Segment
Forward Guidance
The Company raised its 2021 Free Cash Flow outlook and reaffirmed its full year 2021 sales and earnings outlook midpoints, while tightening the ranges previously provided on its second quarter earnings call. The Company is now estimating that TriMas’ 2021 consolidated sales growth will range between 10% to 13%, as compared to full year 2020, and as compared to the previously provided sales growth range of 9% to 14%. The Company now expects full year 2021 adjusted diluted earnings per share to be in the range of $2.18 to $2.27, from the previous range of $2.15 to $2.30 per share, and as compared to $1.92 for full year 2020. In addition, the Company has increased its 2021 Free Cash Flow outlook from greater than 100% of net income to greater than 110% of net income.
Positive Outlook
- full year 2021 sales growth in all three segments
- EPS range representing an increase of approximately 16% at the midpoint, as compared to 2020
- consolidated sales growth will range between 10% to 13%
- full year 2021 adjusted diluted earnings per share to be in the range of $2.18 to $2.27
- increased its 2021 Free Cash Flow outlook from greater than 100% of net income to greater than 110% of net income
Challenges Ahead
- increasing input costs, primarily resin, steel and freight
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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