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TriMas Rationalizes Footprint as Part of Improvement Plan
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TriMas Corporation (TRS - Free Report) has closed a manufacturing plant in Wolverhampton, U.K. and taken steps to cease production at a plant located in Reynosa, Mexico as a part of its Lamons performance improvement plan. These plants are part of the Lamons business which in turn falls under TriMas’ Energy segment. The improvement plan was initiated to mitigate the impact of extended slump in crude oil refinery and exploration end markets.
In the past year, Lamons has improved production throughput at its Houston, TX facility. This has enhanced available capacity and improved on-time delivery performance. Lamons will shift the production from its Reynosa facility to Houston facility. These rationalizing actions will help Lamons focus on regions where its sealing products are witnessing higher demand.
Lamons expects to exit the Reynosa facility by Jun 30, 2017. Charges associated with the exit are projected to range between $2.0 million and $2.5 million. This includes costs related to asset relocation and disposition, and employee separation. Of this, approximately half are expected to be non-cash charges. Further, Lamons has entered into a lease agreement with future rent obligations of approximately $4.5 million following the expected exit date.
TriMas exited Lamons Wolverhampton facility, which produced certain components for subsea applications. Meanwhile, Lamons’ branch in Antwerp, Belgium will continue to support its sealing product customers in the U.K. Charges associated with exiting the Wolverhampton facility are anticipated to be around $3.0–$3.5 million during the first quarter of 2017. Majority of the expenses are expected to be non-cash charges, and primarily related to the disposal of fixed assets and inventory.
TriMas remains focused on reshaping businesses to better serve customers. The company’s exclusive operating model will help improve performance, particularly in its Energy and Aerospace segments. The company is well poised to generate solid earnings growth, with a consistent focus on generating solid cash flow. Moreover, it will benefit from the realignment actions taken throughout 2016.
In the last one year, TriMas has underperformed the Zacks classified Metal Products & Fabrication sub-industry with respect to price performance. The stock gained around 14.3%, while the industry rose 34.3%.
Zacks Rank & Key Picks
TriMas currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include The Timken Company (TKR - Free Report) , ACCO Brands Corporation (ACCO - Free Report) and Brady Corporation (BRC - Free Report) .
ACCO Brands has an average earnings surprise of 24.74% in the last four quarters and flaunts a Zacks Rank #1. Brady Corporation has an average earnings surprise of 20.84% in the past four quarters and carries a Zacks Rank #2 (Buy).
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TriMas Rationalizes Footprint as Part of Improvement Plan
TriMas Corporation (TRS - Free Report) has closed a manufacturing plant in Wolverhampton, U.K. and taken steps to cease production at a plant located in Reynosa, Mexico as a part of its Lamons performance improvement plan. These plants are part of the Lamons business which in turn falls under TriMas’ Energy segment. The improvement plan was initiated to mitigate the impact of extended slump in crude oil refinery and exploration end markets.
In the past year, Lamons has improved production throughput at its Houston, TX facility. This has enhanced available capacity and improved on-time delivery performance. Lamons will shift the production from its Reynosa facility to Houston facility. These rationalizing actions will help Lamons focus on regions where its sealing products are witnessing higher demand.
Lamons expects to exit the Reynosa facility by Jun 30, 2017. Charges associated with the exit are projected to range between $2.0 million and $2.5 million. This includes costs related to asset relocation and disposition, and employee separation. Of this, approximately half are expected to be non-cash charges. Further, Lamons has entered into a lease agreement with future rent obligations of approximately $4.5 million following the expected exit date.
TriMas exited Lamons Wolverhampton facility, which produced certain components for subsea applications. Meanwhile, Lamons’ branch in Antwerp, Belgium will continue to support its sealing product customers in the U.K. Charges associated with exiting the Wolverhampton facility are anticipated to be around $3.0–$3.5 million during the first quarter of 2017. Majority of the expenses are expected to be non-cash charges, and primarily related to the disposal of fixed assets and inventory.
TriMas Corporation Price
TriMas Corporation Price | TriMas Corporation Quote
TriMas remains focused on reshaping businesses to better serve customers. The company’s exclusive operating model will help improve performance, particularly in its Energy and Aerospace segments. The company is well poised to generate solid earnings growth, with a consistent focus on generating solid cash flow. Moreover, it will benefit from the realignment actions taken throughout 2016.
In the last one year, TriMas has underperformed the Zacks classified Metal Products & Fabrication sub-industry with respect to price performance. The stock gained around 14.3%, while the industry rose 34.3%.
Zacks Rank & Key Picks
TriMas currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include The Timken Company (TKR - Free Report) , ACCO Brands Corporation (ACCO - Free Report) and Brady Corporation (BRC - Free Report) .
Timken has an average earnings surprise of 7.62% for the trailing four quarters and flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ACCO Brands has an average earnings surprise of 24.74% in the last four quarters and flaunts a Zacks Rank #1. Brady Corporation has an average earnings surprise of 20.84% in the past four quarters and carries a Zacks Rank #2 (Buy).
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>