Horizon Global Corp., a spinoff of TriMas Corp. comprised of the company’s Cequent businesses, today (Aug. 10) reported net sales for the second quarter, ended June 30, decreased 11.1% to $158.5 million, compared to the second quarter of 2014 due to foreign currency translation and distributor consolidation, partially offset by growth in eCommerce and retail.
Operating profit decreased 64.2% to $5.4 million, from $15 million in the second quarter of 2014. Excluding special items, operating profit decreased 37.8% to $10.2 million, from $16.5 million in the second quarter 2014.
“At the end of the second quarter, Horizon Global successfully spun off from TriMas Corp., resulting in a new publicly traded company with a strong financial position, a seasoned leadership team, and a global footprint and portfolio of strong brands. Our financial results reflect the spin-off of Horizon Global, including incremental stand-alone company costs and expense allocations for certain functions provided by TriMas,” said A. Mark Zeffiro, president and CEO of Horizon Global. “Our focus remains on our three priorities for value creation. Clearly, the first one is margin improvement, and we announced a number of actions geared toward profitability improvement. Second, our anticipated increase in cash flow would assist in reducing debt. And last, we expect increased revenues to be driven by our eCommerce platform, entrance into new markets and growth of our automotive original equipment business. We are leveraging our past investments, product portfolio and manufacturing footprint to create a significant opportunity for value creation.”
Other highlights include:
• Cequent Americas sales decreased 11.5% and Cequent APEA sales decreased 9.6%.
• Segment operating profit margin was 6% compared to 10.6% in the second quarter of 2014.
• Net income per diluted share was 12 cents and 60 cents at the end of the second quarter of 2015 and 2014, respectively.