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TriMas' Aerospace Unit Inks Deal to Expand European Footprint
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TriMas Corporation’s (TRS - Free Report) division — TriMas Aerospace — has entered into a partnership with a global transport and logistics company Kuehne+Nagel to establish a European logistics hub in Contern, Luxembourg. The move supports TriMas Aerospace’s business-expansion strategy in the country with customers like Airbus Group (EADSY - Free Report) , Safran SA (SAFRY - Free Report) and Sonaca, as well as strategic positioning of parts to serve its customer base.
Kuehne+Nagel is a global provider of third-party logistics based in Schindellegi, Switzerland. The company provides expertise for strategic warehousing and logistics requirements with a strong presence in Europe. Its European logistics hub offers TriMas Aerospace with the ability to pre-position products. Further, the new alliance is a strategic fit for TriMas Aerospace’s growing customer base in Europe. The newly-formed partnership fulfills TriMas’ long-term strategy to expand its global presence in order to support the company’s commercial and defense customer base.
TriMas Aerospace is a leading designer and manufacturer of a diverse range of products, including highly-engineered fasteners, collars, blind bolts, rivets and precision-machined components for the global commercial and military aerospace industry. It serves under the Monogram Aerospace Fastener, Allfast Fastening Systems, Mac Fasteners and Martinic Engineering brands.
This February, TriMas acquired RSA Engineered Products, which will expand its aerospace presence into environmental control-system applications, the defense and business jet markets, and aerospace aftermarket. It is expected to contribute $32 million to the Aerospace segment’s annualized sales.
In 2019, the company acquired Plastic Srl and Taplast in an effort to strengthen product offerings, expand geographic presence and accelerate growth of its packaging platform. TriMas has also acquired the Rapak brand, including certain bag-in-box product lines and assets, from Liqui-Box. The Rapak brand name, and bag-in-box applications and products will improve TriMas’ packaging portfolio and add around $30 million to the Packaging segment’s annual sales. Considering all of these acquisitions into account, TriMas’ annual sales will go up to $800 million, with more than 80% of its sales coming in from Packaging and Aerospace markets.
In the wake of the uncertain market conditions, the company is taking steps to lower costs. This includes managing capital expenditures, reducing third-party expenses and making temporary pay cuts. The weakness in end markets like commercial aerospace, oil & gas will likely hurt the company’s performance in the near term. Further, TriMas is managing its production capacity to align with the current demand scenario.
Price Performance
Over the past year, shares of TriMas have depreciated 18.4% compared with the industry’s decline of 7.6%.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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TriMas' Aerospace Unit Inks Deal to Expand European Footprint
TriMas Corporation’s (TRS - Free Report) division — TriMas Aerospace — has entered into a partnership with a global transport and logistics company Kuehne+Nagel to establish a European logistics hub in Contern, Luxembourg. The move supports TriMas Aerospace’s business-expansion strategy in the country with customers like Airbus Group (EADSY - Free Report) , Safran SA (SAFRY - Free Report) and Sonaca, as well as strategic positioning of parts to serve its customer base.
Kuehne+Nagel is a global provider of third-party logistics based in Schindellegi, Switzerland. The company provides expertise for strategic warehousing and logistics requirements with a strong presence in Europe. Its European logistics hub offers TriMas Aerospace with the ability to pre-position products. Further, the new alliance is a strategic fit for TriMas Aerospace’s growing customer base in Europe. The newly-formed partnership fulfills TriMas’ long-term strategy to expand its global presence in order to support the company’s commercial and defense customer base.
TriMas Aerospace is a leading designer and manufacturer of a diverse range of products, including highly-engineered fasteners, collars, blind bolts, rivets and precision-machined components for the global commercial and military aerospace industry. It serves under the Monogram Aerospace Fastener, Allfast Fastening Systems, Mac Fasteners and Martinic Engineering brands.
This February, TriMas acquired RSA Engineered Products, which will expand its aerospace presence into environmental control-system applications, the defense and business jet markets, and aerospace aftermarket. It is expected to contribute $32 million to the Aerospace segment’s annualized sales.
In 2019, the company acquired Plastic Srl and Taplast in an effort to strengthen product offerings, expand geographic presence and accelerate growth of its packaging platform. TriMas has also acquired the Rapak brand, including certain bag-in-box product lines and assets, from Liqui-Box. The Rapak brand name, and bag-in-box applications and products will improve TriMas’ packaging portfolio and add around $30 million to the Packaging segment’s annual sales. Considering all of these acquisitions into account, TriMas’ annual sales will go up to $800 million, with more than 80% of its sales coming in from Packaging and Aerospace markets.
In the wake of the uncertain market conditions, the company is taking steps to lower costs. This includes managing capital expenditures, reducing third-party expenses and making temporary pay cuts. The weakness in end markets like commercial aerospace, oil & gas will likely hurt the company’s performance in the near term. Further, TriMas is managing its production capacity to align with the current demand scenario.
Price Performance
Over the past year, shares of TriMas have depreciated 18.4% compared with the industry’s decline of 7.6%.
A Stock to Consider
TriMas currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the Industrial Products sector is Silgan Holdings Inc. (SLGN - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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