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Bloomfield Hills, Mich.-based TriMas Corp. reported an increase in sales and profits for its third quarter despite lower performance in the company’s recreational vehicle interests that will result in cutbacks.
“The recent economic events of October have dramatically changed our demand outlook, most notably in our RV and trailer products and recreational accessories segments,” said president and CEO Grant H. Beard. “Accordingly, we are reducing plant hours and taking other aggressive cost actions now to right-size these businesses.”
Net income during the quarter, ended Sept. 30, was $8.3 million compared with $6.6 million the previous year while sales rose to $276.9 million from $258.6 million.
“During the quarter, it was evident that the diversity of our businesses and end markets remain a benefit as the U.S. faces challenging economic times,” said Beard.
For the nine months, TriMas reported net income of $25.6 million on revenue of $853.5 million, compared with net income of $10.4 million on sales of $830.8 million a year ago.
The company, which manufactures products in five segments, including packaging systems, energy products, industrial specialties, RV and trailer products, and recreational accessories, saw increased sales in three of those categories.
However, its RV and trailer products and recreational accessories, posted a decline of 8.6% and 11.3%, respectively, which the company attributed to less consumer spending in a shaky economy.
The company serves the RV industry through Plymouth, Mich.-based Cequent Towing Products Group, which supplies products under brand names that include Draw-Tite, Reese, Fulton, Wesbar, Bull Dog, Hidden Hitch and Tekonsha.
The company also announced an acceleration of its $30 million Profit Improvement Plan designed to reduce its fixed cost structure and “improve productivity across all of its business segments.” The plan includes manufacturing and distribution center consolidations, consolidation of business unit activities, staffing reductions and other cost-saving actions.