TriMas Corp (TRS) 2024 Q2 法說會逐字稿

Greetings, and welcome to the TriMas second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sherry Lauderback, Vice President of Investor Relations. Thank you. You may begin.

您好，歡迎參加 TriMas 2024 年第二季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人，投資者關係副總裁雪莉·勞德巴克 (Sherry Lauderback)。謝謝。你可以開始了。

Thank you, and welcome to TriMas Corporation's second-quarter 2024 earnings call. Participating on the call today are Thomas Amato, Trimas' President and CEO; and Scott Mell, our Chief Financial Officer. We will provide our prepared remarks on our second quarter results and outlook, and then we'll open up the call for questions. In order to assist with the review of our results, we have included today's press release and presentation on our company website at trimas.com under the Investors section.

謝謝，歡迎參加 TriMas Corporation 的 2024 年第二季財報電話會議。 Trimas 總裁兼執行長 Thomas Amato 參加了今天的電話會議；和我們的財務長史考特·梅爾。我們將提供有關第二季度業績和前景的準備好的評論，然後我們將開始提問。為了協助審查我們的業績，我們將今天的新聞稿和簡報放在公司網站 trimas.com 的投資者部分下。

In addition, a replay of this call will be available later today by calling 877 660-6853 with a meeting of 13747794. Before we get started, I would like to remind everyone that our comments today may contain forward-looking statements that are inherently subject to a number of risks and uncertainties. Please refer to our Form 10-K and our Form 10-Q to be filed later today for a list of factors that could cause our results to differ from those anticipated in any forward-looking statements. Also, we undertake no obligation to publicly update or revise any forward-looking statements, except as required by law.

此外，今天晚些時候，您可以撥打877 660-6853 進行重播，會議人數為13747794。的。請參閱我們今天稍後提交的 10-K 表格和 10-Q 表格，以了解可能導致我們的結果與任何前瞻性聲明中預期的結果不同的因素清單。此外，我們不承擔公開更新或修改任何前瞻性聲明的義務，除非法律要求。

We would also direct your attention to our website where considerably more information may be found. In addition, we would like to refer you to the appendix in our press release or our presentation for the reconciliations between GAAP and non-GAAP financial measures used during this call. Today, the discussion on the call regarding our financial results will be on an adjusted basis, excluding the impact of special items. With that, I will turn the call over to Tom Amato, TriMas' President and CEO. Tom?

我們也會引導您關注我們的網站，在那裡可以找到更多資訊。此外，我們希望您參閱我們新聞稿或簡報中的附錄，以了解本次電話會議中使用的 GAAP 和非 GAAP 財務指標之間的調整。今天，電話會議上有關我們財務表現的討論將在調整後的基礎上進行，不包括特殊項目的影響。接下來，我會將電話轉給 TriMas 總裁兼執行長 Tom Amato。湯姆？

Thank you, Sherry. Good morning, and thank you for joining us on our second quarter earnings call. Let's turn to slide 3. As I'm certain you have seen from our earnings release this morning, while the resiliency of TriMas' Packaging and Aerospace businesses have become more evident, our businesses within the Specialty Products industrial markets have not yet seen the demand recovery we anticipated would have occurred by this point in the year. However, as we reflect on the quarter and the first half of the year, we experienced a number of positive developments, which we believe will translate into long-term opportunities for value creation despite encountering some discrete challenges.

謝謝你，雪莉。早安，感謝您參加我們的第二季財報電話會議。讓我們轉向幻燈片 3。預計到今年這個時候就會出現復甦。然而，當我們回顧本季和上半年時，我們經歷了許多積極的發展，我們相信，儘管遇到了一些離散的挑戰，但這些發展將轉化為創造價值的長期機會。

I'll provide one example from our largest group, TriMas Packaging. When demand pulled back last year, we were tempted to deeply cut costs. While we flex some variable costs, we instead leaned into reengineering our commercial approach to drive long-term growth. We invested in a new customer relationship management application and we also invested in reorganizing our commercial model, replicating an 80-20 approach.

我將提供我們最大的集團 TriMas Packaging 的一個例子。去年需求回落時，我們很想大幅削減成本。雖然我們調整了一些可變成本，但我們傾向於重新設計我們的商業方法以推動長期成長。我們投資了新的客戶關係管理應用程序，也投資重組了我們的商業模式，複製了 80-20 的方法。

Although these initiatives are still in early stages of integration, we believe these internal changes, coupled with the natural market recovery, are now contributing to the strong core growth rates we are experiencing in our packaging group today. Given the foundational growth in revenue, I remain very excited about TriMas Packaging's potential, and I'm confident we will improve upon conversion rates as we move forward. Next, I would like to provide an example for our TriMas Aerospace Group. When I compare the second quarter of last year to this most recent quarter, the dynamics couldn't be more different.

儘管這些舉措仍處於整合的早期階段，但我們相信這些內部變化，加上市場的自然復甦，正在為我們包裝集團今天所經歷的強勁核心成長率做出貢獻。鑑於收入的基本成長，我仍然對 TriMas Packaging 的潛力感到非常興奮，我相信隨著我們的前進，我們將提高轉換率。接下來我想舉一個我們TriMas航太集團的例子。當我將去年第二季與最近一個季度進行比較時，情況截然不同。

In the second quarter of last year, we faced a snapback of demand from our Aerospace customers compounded by supply and labor constraints as well as several voluntary leadership changes. The broad-based actions and leadership top rating we implemented over the past year are too numerous to list for this call. But suffice it to say, we have successfully turned around the prospect for TriMas Aerospace. Assuming no further shocks in the A&D market, our Aerospace business, or our Aerospace business specifically, we anticipate exiting 2024 at a conversion rate nearing pre-COVID levels, but more importantly, at approximately 50% higher rate of sales.

去年第二季度，我們面臨著航空航太客戶需求的大幅回升，加上供應和勞動力限制以及幾次自願的領導層變動，情況更加複雜。我們在過去一年中實施的廣泛行動和領導力最高評價不勝枚舉，無法在本次電話會議中一一列舉。但可以說，我們已經成功扭轉了 TriMas Aerospace 的前景。假設A&D 市場、我們的航空航太業務、特別是我們的航空航太業務不再受到進一步衝擊，我們預計2024 年退出時的轉換率將接近新冠疫情前的水平，但更重要的是，銷售額將提高約50%。

I also remain very excited about the long-term prospect for TriMas Aerospace. While those are a few positive examples, unfortunately, our Specialty Products segment experienced a very different set of end market dynamics since the same quarter last year and even since Q1 2024. Moreover, we have planned for the demand begin to recover in the second quarter of this year, predominantly within our Norris Cylinder business. However, total bookings and demand actually softened further, prompting us to lower our sales forecast within Specialty Products for the second half.

我對 TriMas Aerospace 的長期前景仍然感到非常興奮。雖然這些只是一些積極的例子，但不幸的是，自去年同一季度甚至2024 年第一季以來，我們的特種產品部門經歷了一系列截然不同的終端市場動態。開始復甦今年，主要是在我們的諾里斯氣缸業務範圍內。然而，總預訂量和需求實際上進一步疲軟，促使我們降低了下半年特種產品的銷售預測。

In fact, the change in volume with our Norris Cylinder business is the main negative driver that impacted our first half and our annual outlook. Both Scott and I will be covering this dynamic in more detail throughout the call. So with that backdrop, our consolidated sales for the quarter were up 3.1%, with our Packaging and Aerospace groups increasing 12.5% and 30%, respectively. As noted, our Specialty Products segment experienced a reduction in sales driven from prior year overstocking and other factors of approximately 45%. Despite Specialty Products representing approximately 50% of TriMas' total portfolio sales, given our scale, the large rate of change had a profound performance impact in the quarter. I would now like to turn our attention to share repurchases for the first half of the year. On a year-to-date basis, including the actions in the second quarter, we repurchased approximately 672,000 shares for a net reduction of approximately 1.3% of shares outstanding. This rate of share repurchases is higher than the last year and we continue to believe that reducing shares outstanding is a tax-efficient way to return long-term value to our shareholders.

事實上，我們的諾里斯汽缸業務量的變化是影響我們上半年和年度前景的主要負面因素。斯科特和我都將在整個電話會議中更詳細地介紹這一動態。因此，在此背景下，我們本季的綜合銷售額成長了 3.1%，其中包裝和航空航天部門分別成長了 12.5% 和 30%。如上所述，由於前一年庫存過剩和其他因素，我們的特殊產品部門的銷售額下降了約 45%。儘管特種產品約佔 TriMas 產品組合總銷售額的 50%，但考慮到我們的規模，較大的變化率對本季的業績產生了深遠的影響。我現在想把注意力轉向上半年的股票回購。年初至今，包括第二季的行動，我們回購了約 672,000 股股票，淨減少了約 1.3% 的已發行股票。此次股票回購率高於去年，我們仍相信減少流通股是為股東回報長期價值的節稅方式。

I will also note that we have ample room under our share buyback authorization and will continue to place a priority on opportunistic share buybacks as we assess value dislocating events in the market. Let's turn to Slide 4. On this slide, given the nuances of this quarter, we thought it would be helpful to take a few minutes to review sequential quarterly performance, which we believe will provide investors with a better view of our current status. Starting with TriMas Packaging. We experienced 3.9% organic growth as compared to Q1 2024. We believe growth in demand is beginning to return as customers start to refill pipelines after inventory stocks were depleted in key channels last year.

我還要指出的是，我們的股票回購授權有足夠的空間，並且在我們評估市場價值錯位事件時，我們將繼續優先考慮機會性股票回購。讓我們轉向投影片4。狀況。從 TriMas 包裝開始。與 2024 年第一季相比，我們經歷了 3.9% 的有機成長。

Additionally, commercial dynamics are much improved from last year based on our in-bookings rate and new business quoting activity. Conversion was essentially comparable between the first and second quarters of 2024 as our pull-through rate continues to be hampered from off-standard production and expedited freight costs from high demand on certain product lines. We do anticipate conversion rates will improve on a higher rate of sales as we move through the year and into 2025. Within our TriMas Aerospace group, we compared to the first quarter of this year as compared to the first quarter of this year, we are continuing to see positive results from the sweeping operational and commercial actions we have been focused on over the past year.

此外，根據我們的預訂率和新業務報價活動，商業動態比去年有了很大改善。 2024 年第一季和第二季的轉換率基本上相當，因為我們的交貨率繼續受到非標準生產和某些產品線高需求導致的快速貨運成本的阻礙。我們確實預計，隨著全年進入 2025 年，轉換率將隨著銷售率的提高而提高。和商業行動持續取得正面成果。

While we still believe we have some upside to achieve on conversion to get back to pre-COVID levels, as mentioned, we are now operating at a much higher rate of sales, therefore, driving growth in absolute EBITDA. This improvement is a testament to the TriMas Aerospace team, collaborating with our supplier partners and also focusing on operational and commercial excellence improvements. Within our Specialty Products segment as compared to the first quarter of this year, revenues softened by 5.8%. The resulting sales rate is a very low base for our Specialty Products Group, and we believe we are now beginning to exit this cyclical demand trough.

雖然我們仍然相信我們在轉換方面還有一些上行空間，可以回到新冠疫情前的水平，但正如前面提到的，我們現在的銷售速度要高得多，因此，推動了絕對 EBITDA 的成長。這項改進證明了 TriMas Aerospace 團隊與我們的供應商合作夥伴的合作，並專注於營運和商業卓越改進。與今年第一季相比，我們的特種產品部門的收入下降了 5.8%。由此產生的銷售率對於我們的特種產品集團來說是一個非常低的基礎，我們相信我們現在正在開始擺脫這個週期性需求低谷。

However, our expectations for sales in the second half have been tempered for our Norris Cylinder business, given the rate of demand experienced in the second quarter. As such, we have implemented further flexing actions now taking deeper structural costs out of Norris Cylinder out of our Norris Cylinder business to improve performance even at a lower base of sales. And we know this is possible as we have performed historically better at sales rates not too far off from where we are experiencing today. Let's turn to slide 5, and I'll briefly go through our consolidated results for the quarter.

然而，考慮到第二季的需求情況，我們對諾里斯汽缸業務下半年的銷售預期有所緩和。因此，我們採取了進一步的靈活行動，將諾里斯氣缸業務中的更深層結構成本從我們的諾里斯氣缸業務中剔除，以即使在較低的銷售基礎上也能提高業績。我們知道這是可能的，因為我們在歷史上的銷售業績與今天的銷售業績相差不遠。讓我們轉向投影片 5，我將簡要介紹本季的綜合業績。

We are reporting sales of $240.5 million, up 3.1% as compared to the prior year quarter due to the factors previously discussed. Adjusted operating profit of $20.8 million was lower than the prior year quarter given demand challenges within our Specialty Products businesses as well as certain favorable factors benefiting TriMas in the second quarter of 2023, which did not repeat. Adjusted EPS was $0.43, which was lower than we anticipated in this quarter due to the factors noted previously and lower as compared to the prior year quarter. Adjusted EBITDA was $36.6 million or 15.2% of sales, lower than the prior year quarter with the vast majority of the shortfall driven by demand changes and related conversion within our Specialty Products businesses.

由於前面討論的因素，我們報告的銷售額為 2.405 億美元，比去年同期成長 3.1%。鑑於我們的特種產品業務內的需求挑戰以及 2023 年第二季度 TriMas 受益的某些有利因素（這種情況沒有重複），調整後營業利潤為 2080 萬美元，低於去年同期。調整後每股收益為 0.43 美元，由於先前提到的因素，該季度低於我們的預期，並且低於去年同期的水平。調整後 EBITDA 為 3,660 萬美元，佔銷售額的 15.2%，低於去年同期，主要原因是我們特種產品業務的需求變化和相關轉換造成的。

As we have noted on prior calls, our balance sheet remains strong, and our low interest-bearing senior note do not mature until 2029. It is also important to note that we generated $11.4 million of free cash flow in this quarter, in line with last year despite a lower base of absolute EBITDA as we continue to focus on enhancing cash flow for TriMas. And finally, we finished the quarter with a leverage ratio of 2.6x, slightly higher than the same quarter last year, but in line with the first quarter of 2024. At this point, I will now turn the call over to Scott, who will take us through TriMas' segment results. Scott?

正如我們在先前的電話會議中指出的那樣，我們的資產負債表仍然強勁，我們的低息高級票據要到2029 年才會到期。的自由現金流，這與儘管我們去年的絕對 EBITDA 基數較低，但我們繼續專注於增強 TriMas 的現金流。最後，我們本季的槓桿率為 2.6 倍，略高於去年同期，但與 2024 年第一季持平。分結果。史考特？

Thanks, Tom. Let's turn to slide 6, and I will begin my review of our segment results, starting with TriMas Packaging. Net sales in the quarter were up $132 million as compared to $117 million for the prior year quarter, an increase of more than 12%. This year-over-year increase was primarily driven by organic growth for our dispensing and closure products, which serve the beauty and personal care and industrial end markets, which increased on an organic basis 24% and 19%, respectively. It is great to see demand recovery in these important end markets.

謝謝，湯姆。讓我們轉向幻燈片 6，我將從 TriMas Packaging 開始回顧我們的部門結果。本季淨銷售額成長 1.32 億美元，較去年同期的 1.17 億美元成長超過 12%。這一同比增長主要是由我們的分配和封蓋產品的有機增長推動的，這些產品服務於美容和個人護理以及工業終端市場，有機增長分別為 24% 和 19%。很高興看到這些重要終端市場的需求復甦。

On a sequential quarter-over-quarter basis, net sales increased by approximately 4%. Operating profit for the quarter was $18.5 million or 14% of sales, which on a margin basis is essentially flat versus Q1 of 2024, but down 470 basis points versus the prior year period. This year-over-year decline is primarily related to period specific operating costs associated with increased demand for certain dispensing products, IT allocation costs of $1.1 million, which were accounted for within corporate costs in the prior year period and a $2.6 million commercial settlement in Q2 of 2023, which did not repeat. Considering the impact of these items, pro forma Q2 adjusted operating profit would have been flat when compared to the prior year period at approximately 15.5%.

以季度環比計算，淨銷售額成長約 4%。該季度的營業利潤為 1,850 萬美元，佔銷售額的 14%，按利潤率計算，與 2024 年第一季基本持平，但與去年同期相比下降了 470 個基點。這一同比下降主要與某些配藥產品需求增加相關的特定期間營運成本、110 萬美元的 IT 分配成本（已計入上一年期間的公司成本）以及 260 萬美元的商業結算有關。二季度，不再重複。考慮到這些項目的影響，預計第二季調整後營業利潤將與去年同期持平，約 15.5%。

Adjusted EBITDA was $26.7 million or 20.2% of net sales, a nominal increase of $500,000 when compared to Q1 of 2024. We remain very pleased with the sales momentum within TriMas Packaging with year-to-date organic sales up close to 10% and expect our conversion rates to improve as we move through the second half of 2024 as we work through operational pinch points created by significantly higher customer orders. Accordingly, we are increasing our full year sales guidance for TriMas Packaging to 9% to 10% and tightening our full year guidance for adjusted EBITDA margin to 21% to 23%. Looking forward, we expect future growth for TriMas Packaging to be driven by continuing improvement in both general consumer and industrial demand, further expansion of our presence in new and emerging geographical markets such as South America and growth in demand for our innovative new products within all of the end markets we serve.

調整後的EBITDA 為2,670 萬美元，佔淨銷售額的20.2%，與2024 年第一季相比名義上增加了50 萬美元。金額將成長近10%，並預計到 2024 年下半年，我們的轉換率將會提高，因為我們正在努力解決因客戶訂單大幅增加而造成的營運困境。因此，我們將 TriMas Packaging 的全年銷售指引提高至 9% 至 10%，並將調整後 EBITDA 利潤率的全年指引收緊至 21% 至 23%。展望未來，我們預計 TriMas Packaging 的未來成長將受到一般消費者和工業需求的持續改善、我們在南美等新興地區市場的進一步擴張以及所有領域對我們創新新產品的需求增長的推動。市場。

Turning to slide 7, I will now provide an update on our TriMas Aerospace segment. Net sales for the quarter increased by almost $18 million or 30% when compared to the same period a year ago as general aerospace volumes continue to recover, and we benefit from improved operational efficiencies and commercial recoveries associated with higher input costs. Acquisitions contributed $1.4 million of sales during the quarter, while organic sales increased by $16.5 million or 27.6% when compared to the previous year period. Operating profit for the quarter was $10.5 million or 13.5% of net sales, which represents a 730 basis point improvement when compared to the previous year period and a 290 basis point improvement when compared to Q1 of 2024.

轉向幻燈片 7，我現在將提供有關 TriMas 航空航天部門的最新資訊。由於通用航空航太銷售持續復甦，本季淨銷售額與去年同期相比增加了近 1,800 萬美元，即 30%，我們受益於營運效率的提高和與投入成本上升相關的商業復甦。本季收購貢獻了 140 萬美元的銷售額，而有機銷售額與去年同期相比增加了 1,650 萬美元，即 27.6%。該季度營業利潤為 1,050 萬美元，佔淨銷售額的 13.5%，與去年同期相比提高了 730 個基點，與 2024 年第一季相比提高了 290 個基點。

Adjusted EBITDA for the quarter was $15 million or 19.4% of net sales. Expanding a bit on the recent performance improvement for TriMas Aerospace, LTM sales for the second quarter of 2024 were approximately 34% higher than the rate we were at the same point in 2023. In addition, LTM sales for TriMas Aerospace are now higher than the pre-COVID period of 2019 when we exclude the impact of post 2019 acquisitions. While we are very pleased with this full demand recovery, we do believe there is incremental margin opportunity within TriMas Aerospace as we continue to invest in manufacturing capacity and see further improvements in supply chain continuity.

本季調整後 EBITDA 為 1,500 萬美元，佔淨銷售額的 19.4%。稍微擴展一下 TriMas Aerospace 最近的業績改善，2024 年第二季的 LTM 銷售額比 2023 年同期高出約 34%。了2019 年之後收購的影響。雖然我們對需求的全面復甦感到非常高興，但我們確實相信，隨著我們繼續投資於製造能力並看到供應鏈連續性的進一步改善，TriMas Aerospace 內部存在著增量利潤機會。

Accordingly, we are increasing our full year sales growth guidance to 18% to 22% and full year guidance for adjusted EBITDA margin to 18% to 19%. Now, on slide 8, let's review our Specialty Products segment. Net sales were $31 million as compared to $56 million for the prior year quarter, which was the highest quarterly sales performance ever for Specialty Products. This high demand rate in the first half of 2023 was driven by supply chain concerns, which led to elevated rates of ordering and resulting customer stock builds.

因此，我們將全年銷售成長指引提高至 18% 至 22%，並將調整後 EBITDA 利潤率的全年指引提高至 18% 至 19%。現在，在投影片 8 上，讓我們回顧一下我們的特色產品部分。淨銷售額為 3,100 萬美元，而去年同期為 5,600 萬美元，這是特種產品有史以來最高的季度銷售業績。 2023 年上半年的高需求率是由供應鏈問題推動的，這導致訂購率上升並導致客戶庫存增加。

Sales in the quarter continued to be negatively impacted largely by the overstock position of industrial cylinders and to a lesser extent, lower sales of compressors serving the oil and gas industry. In addition, sales of cylinders into defense-related applications have been deferred and are now not expected to run at a normalized rate until the start of 2025. While we continue to see some moderate improvement in our order book for steel cylinders and expect second half demand for steel cylinders to improve modestly over the first half run rate, we do not foresee, at this point, our previously expected second half demand recovery for these industrial businesses. Accordingly, we are revising our guidance for full year sales decline for Specialty Products to 25% to 30%.

本季的銷售持續受到負面影響，主要是由於工業鋼瓶庫存過剩，以及較小程度上服務於石油和天然氣行業的壓縮機銷量下降。此外，用於國防相關應用的氣瓶銷售已被推遲，預計要到 2025 年初才會以正常速度運行。改善，目前我們預計這些工業企業的需求下半年不會恢復。因此，我們將特種產品全年銷售額下降的指導修改為 25% 至 30%。

Operating profit in the quarter was $0.6 million or 1.9% of net sales, while adjusted EBITDA for the quarter was $1.7 million or 5.3% of net sales. I would like to mention that during the quarter, our Norris Cylinder business took advantage of the lower demand environment to complete two strategic initiatives, which while critical to driving future operational performance improvement, further burdened profitability during the quarter. First, they completed the process of pivoting to a pull inventory system in response to structural shifts in customer delivery time expectations. Second, they completed significant and necessary repairs and maintenance to key manufacturing assets.

本季營業利潤為 60 萬美元，佔淨銷售額的 1.9%，調整後 EBITDA 為 170 萬美元，佔淨銷售額的 5.3%。我想提一下，在本季度，我們的諾里斯氣缸業務利用需求較低的環境完成了兩項戰略舉措，這雖然對推動未來營運績效的改善至關重要，但進一步拖累了本季度的盈利能力。首先，他們完成了轉向拉式庫存系統的過程，以應對客戶交貨時間預期的結構性變化。其次，他們完成了關鍵製造資產的重大和必要的維修和保養。

We estimate that these two initiatives alone negatively impacted the quarter by $0.06 per share. As mentioned earlier by Tom, given second quarter performance and our tempered view of second half 2024 demand, we have begun to execute additional structural cost reductions within Specialty Products while maintaining the necessary flexibility to respond to anticipated demand recoveries beginning in late 2024 or early 2025. In addition, we've originally engaged with the consultancy firm, Strategex, to assess and implement strategic growth and profit enhancement opportunities within Norris Cylinder based on the 80-20 profit and growth model originally developed by Illinois Tool Works. While we expect these efforts to meaningfully improve our current conversion rates, they will take time to implement and be realized in financial performance.

我們估計，光是這兩項舉措就對本季每股產生了 0.06 美元的負面影響。正如Tom 先前所提到的，鑑於第二季的業績以及我們對2024 年下半年需求的溫和看法，我們已開始在特種產品中實施額外的結構性成本削減，同時保持必要的靈活性，以應對2024年末或2025 年初開始的預期需求復甦此外，我們最初與顧問公司 Strategex 合作，根據伊利諾斯工具廠最初開發的 80-20 利潤和成長模型來評估和實施 Norris Cylinder 內的策略成長和利潤成長機會。雖然我們期望這些努力能有意義地提高我們目前的轉換率，但它們需要時間來實施並在財務表現中實現。

And accordingly, at this time, we are reducing our full year guidance for adjusted EBITDA margin for Specialty Products to 10% to 14%. At this point, I'd like to turn the call back over to Tom to discuss our updated full year sales and adjusted EPS guidance and to provide some closing remarks. Tom?

因此，目前我們將特種產品調整後 EBITDA 利潤率的全年指引降低至 10% 至 14%。此時，我想將電話轉回湯姆，討論我們更新的全年銷售額和調整後的每股收益指導，並提供一些結束語。湯姆？

Thank you, Scott. Let's turn to slide 9, given the results in the second quarter and modified expectations related to our Specialty Products segment in the second half, we are revising our sales and EPS outlook for 2024. We now expect sales to be in the 4% to 6% range with the center point slightly lower than originally planned. We are also revising our EPS range to $1.70 to $1.90 as compared to $1.95 to $2.15 as we anticipated to begin the year. If we turn our attention to the summary bridge on the right of Slide 9.

謝謝你，斯科特。讓我們轉向幻燈片9，考慮到第二季度的業績以及下半年與我們的特種產品部門相關的修改預期，我們正在修訂2024 年的銷售額和每股收益預期。 % 至6% 之間%範圍，中心點略低於原計劃。我們還將每股收益範圍從年初預期的 1.95 美元至 2.15 美元調整為 1.70 美元至 1.90 美元。如果我們將注意力轉向投影片 9 右側的摘要橋。

You can see the discrete drivers of our change in our outlook. We do not show TriMas packaging on this bridge because we continue to estimate that this group will remain within our internal planning ranges for the year. With respect to TriMas Aerospace, this group is currently trending above our internal planning ranges for the year, and we continue to anticipate it will remain on track for the second half. While we now believe higher interest rates will be are current to our EPS forecast for the year, the main driver to our revised outlook is a different demand and recovery profile for our Specialty Products businesses than we anticipated for 2024.

您可以在我們的前景中看到我們變化的離散驅動因素。我們沒有在這座橋上展示 TriMas 包裝，因為我們繼續估計該組將保持在我們今年的內部計劃範圍內。至於 TriMas Aerospace，該集團目前的趨勢高於我們今年的內部計畫範圍，我們繼續預期其下半年將保持在正軌上。雖然我們現在認為利率上升將符合我們今年的每股盈餘預測，但我們修訂前景的主要驅動力是我們特種產品業務的需求和復甦狀況與我們對 2024 年的預期不同。

Before moving to Q&A, I'll conclude our prepared remarks by refreshing the near and long-term value creating opportunity set for TriMas: first, our two largest operating groups, TriMas Packaging and TriMas Aerospace, which together represent nearly 85% of our LTM sales, are at different stages of performance recovery after a very challenged 2023. We anticipate that the positive momentum of these high-quality business lines will carry into 2025 and well beyond. Next, while our Specialty Products businesses have experienced significant challenges in this period, we have already completed many actions that are not yet financially benefiting the group, but which we expect to do so as we move through 2024 and into 2025. Moreover, as we expect to experience demand reversion, when it occurs, we should convert well in our Specialty Products business.

在進行問答之前，我將透過回顧 TriMas 的近期和長期價值創造機會來結束我們準備好的發言：首先，我們最大的兩個營運集團 TriMas Packaging 和 TriMas Aerospace，它們合計占我們 LTM 的近 85%在在經歷了充滿挑戰的2023 年之後，銷售、業績恢復正處於不同階段。接下來，雖然我們的特種產品業務在此期間經歷了重大挑戰，但我們已經完成了許多行動，這些行動尚未為集團帶來經濟利益，但我們預計在 2024 年和 2025 年期間將實現這些行動。預計會經歷需求逆轉，當它發生時，我們應該很好地轉變我們的特殊產品業務。

Finally, we continue to take steps to focus and improve our portfolio of businesses. We have already announced the planned divestiture of our Aero Engine business, which would facilitate TriMas' exit of our presence in the oil and gas end market. We also placed a priority on building out our TriMas Packaging platform through M&A with a focus on the life sciences, beauty and food and beverage end markets and secondarily building out our TriMas Aerospace platform through strategic acquisitions to enhance its long-term value. I would like to again thank our investors for their continued interest and support, and we'll now turn the call back to Sherry. Sherry?

最後，我們繼續採取措施集中和改進我們的業務組合。我們已經宣布計劃剝離我們的航空發動機業務，這將有助於 TriMas 退出我們在石油和天然氣終端市場的業務。我們也優先透過併購打造 TriMas 包裝平台，專注於生命科學、美容和食品飲料終端市場，其次透過策略性收購打造 TriMas 航太平台，以提升其長期價值。我想再次感謝我們的投資人一直以來的關注和支持，現在我們將把電話轉回給 Sherry。雪莉酒？

Thanks, Tom. At this point, we would like to open the call up for questions.

謝謝，湯姆。此時，我們想開始提問。

(Operator Instructions) Ken Newman, KeyBanc Capital Markets.

（操作員指示）Ken Newman，KeyBanc 資本市場。

So maybe just to start off, I mean, I think one of your investors has been a bit more vocal about trying to advocate for portfolio changes, improved performance of the overall company. Obviously, the performance out of Specialty this quarter was disappointing. But I'm curious if that performance this quarter has changed your way of thinking around what the ultimate portfolio could look like longer term?

所以也許剛開始，我的意思是，我認為你們的一位投資者更加直言不諱地試圖倡導投資組合的變化，提高整個公司的表現。顯然，Specialty本季的表現令人失望。但我很好奇本季的表現是否改變了您對最終投資組合的長期思考方式？

Well, thanks for the question. We are very well aware of public statements made by Barrington and their investment in the company. And certainly, we appreciate all constructive feedback from all of our investors. I wouldn't say it necessarily changed our thinking strategically related to this quarter specifically.

嗯，謝謝你的提問。我們非常了解巴林頓的公開聲明及其對公司的投資。當然，我們感謝所有投資者的所有建設性回饋。我不會說這一定會改變我們與本季具體相關的戰略思維。

What occurred this quarter has changed our actions and some of the focus that we placed within our Specialty Products businesses. But if you think about Specialty Products generally today, one of the businesses in that group is already being marketed for sale, and we're working through that process and that will be one step in focusing our portfolio. But at this moment, sort of what's moved up in terms of the priority list operationally is ensuring we turn around our Norris Cylinder business, which as I mentioned, we know at this base rate of sales, we can perform much better.

本季發生的事情改變了我們的行動以及我們對特種產品業務的一些關注重點。但如果你今天普遍考慮一下特種產品，該組中的一項業務已經開始銷售，我們正在完成這個過程，這將是我們集中投資組合的一個步驟。但目前，在營運方面的優先事項清單上有所上升，是確保我們扭轉諾里斯氣缸業務，正如我所提到的，我們知道在這個基本銷售率下，我們可以表現得更好。

Just, I guess, as a clarification question. I think a quarter or two quarters ago, you had mentioned this expectation to fold in Norris into the Packaging segment. Is that still your intention? Or is that no longer the case, given how dilutive it would be?

我想，只是作為一個澄清問題。我想一個季度或兩個季度前，您曾提到將 Norris 納入包裝領域的期望。這仍然是你的意圖嗎？或者考慮到它的稀釋程度，情況不再是這樣了？

Yes. I would say that's on hold given the developments of Norris Cylinder this quarter.

是的。我想說，鑑於 Norris Cylinder 本季度的發展，這一點已被擱置。

Okay. And then for a follow-up here. On Norris Cylinder, I understand visibility is limited, but I'm just curious what your customers are saying from an inventory perspective? Where are days inventory? And just how do you view the visibility within that channel and getting comfortable with the recovery in that market?

好的。然後在這裡進行後續跟進。在 Norris Cylinder 上，我知道可見性有限，但我只是好奇您的客戶從庫存角度說了什麼？天數庫存在哪裡？您如何看待該通路內的可見度並對市場的復甦感到滿意？

Yes. It's a good question. It's obviously one we've been spending a lot of time on certainly over the past several weeks. Although we've experienced this in each of our businesses, right, over the course of the past few years, we believe what's occurred at Norris is a little bit more unique and when we look at our largest set of customers, some have clearly an overstock position and some of that related much of that related to buying patterns in 2023 when there it was very difficult to get material and any steel goods. And we saw this in our Aerospace business as well.

是的。這是一個好問題。顯然，過去幾週我們在這方面花了大量時間。儘管我們在過去幾年的每項業務中都經歷過這種情況，但我們相信諾里斯發生的事情更加獨特，當我們審視我們最大的客戶群時，有些客戶顯然有庫存過剩，其中一些與2023年的購買模式有關，當時很難取得材料和任何鋼材。我們在航空航天業務中也看到了這一點。

We were the ones that were securing all the raw material we could. Another larger customer of ours is in a channel where it's government-related and the spending allocation, we think, is delayed possibly because of the election, possibly because of other factors. We still think the demand will be there, but we don't expect that demand probably to start to occur until later in the year and into next year, but we do expect that demand to revert. And then, another large customer of ours certainly has been shopping for different price point products.

我們是盡可能獲得所有原料的人。我們的另一個較大客戶處於與政府相關的管道，我們認為支出分配可能因選舉或其他因素而被推遲。我們仍然認為需求將會存在，但我們預計需求可能要到今年晚些時候和明年才會開始出現，但我們確實預計需求會恢復。然後，我們的另一個大客戶肯定一直在購買不同價位的產品。

And while they may not be in the complete overstock position, we're working to get more share of that customer back, but it's a long-term customer and what tends to happen in our Norris Cylinder business is share movement from time to time based on market pricing. It's a little bit like something you might see with chemical companies.

雖然他們可能沒有完全處於庫存過剩的狀態，但我們正在努力奪回該客戶的更多份額，但這是一個長期客戶，我們的諾里斯氣缸業務中往往會發生的情況是基於不時的份額變動關於市場定價。這有點像您在化學公司中看到的情況。

Understood. If you don't mind, maybe I can just squeeze one last one in here on Packaging. Obviously, the growth in the order rate is down pretty positive here. Maybe if you've got a tough comp this next quarter and then maybe a seasonally easier quarter in the fourth quarter. Just help us think about the cadence there. And then longer term, how do you think about the longer-term EBIT margin potential for that segment given all the moving pieces?

明白了。如果你不介意的話，也許我可以在包裝上擠最後一張。顯然，這裡的訂單率成長相當積極。也許如果你下個季度的業績比較艱難，那麼第四季可能會是季節性比較輕鬆的季度。請幫助我們思考那裡的節奏。然後從長遠來看，考慮到所有的變化，您如何看待該細分市場的長期息稅前利潤潛力？

Well, I'll take the second part of that question, and then Scott will look at the quarterly comps and jump in. We know we are not performing at the conversion rate that is our true potential, and we know the reasons why. And interestingly, what we saw in Aerospace across the board. We do have some of those hot spots within our Packaging business.

好吧，我將回答這個問題的第二部分，然後斯科特將查看季度比較並介入。有趣的是，我們在航空航太領域看到了全面的情況。我們的包裝業務中確實有一些熱點。

Specifically, there are some products that we're supplying where very important customers are pulling above our capacity rates and when that happens, you run over time, you had expedited freight. There's a lot of off-standard costs that are impacting your business. We saw this coming, we have capacity that is coming online towards the end of the year. And that will relieve some of that pressure, probably all of that pressure and allow us to improve our performance as we move into 2025 and beyond.

具體來說，我們提供的一些產品的非常重要的客戶超出了我們的產能率，當這種情況發生時，你會超時，你會加快貨運速度。有很多不合標準的成本正在影響您的業務。我們預見了這一點，我們的產能將在年底上線。這將減輕部分壓力，甚至可能是全部壓力，並使我們能夠在進入 2025 年及以後的過程中提高績效。

But when I look at the business and I look at sort of the profile and the full opportunity set, I mean we're at least in the nearer term into 2025, we're at least 200 bps below where our potential should be in the nearer term. Scott, I'll let you answer some quarterly questions if you want.

但是，當我審視業務並審視其概況和完整的機會集時，我的意思是，我們至少在 2025 年的近期內，我們的潛力至少比我們的潛力低 200 個基點。史考特，如果你願意的話，我可以讓你回答一些季度問題。

Yes, Ken, was that question on Aerospace or Packaging?

是的，肯，這個問題是關於航空航天還是包裝？

Packaging.

包裝。

Packaging. Yes. I mean look, I think we expect to see similar quarterly year-over-year growth for the second half of the year. I mean if you look at the guidance for the full year, you can kind of back into what we're anticipating for the second half of the year, it's going to be in that same range around 10% year-over-year sales growth is what we're anticipating for the second half of the year.

包裝。是的。我的意思是，我認為我們預計下半年將出現類似的季度同比增長。我的意思是，如果你看一下全年的指導，你可以回顧一下我們對下半年的預期，銷售額同比增長將在 10% 左右。

Hamed Khorsand, BWS Financial.

Hamed Khorsand，BWS Financial。

So first question I had was related to Packaging. You guys last year emphasized capacity being taken off and now you're saying that you're hitting capacity bottlenecks and issues. So why did that happen? What's different from that what you did last year to what's being ordered this year and why are you now talking about bringing on capacity? It just seems like everything is going around.

所以我的第一個問題跟包裝有關。你們去年強調產能正在減少，現在卻說你們遇到了產能瓶頸和問題。那為什麼會發生這種情況呢？今年訂購的產品與去年的做法有何不同？似乎一切都在順利進行。

Yes, Hamed, that's a good question. It's a fair question. We did not take capacity out last year. We repositioned capacity. So specifically, what you're referring to is operational changes we made in a very low demand market to reposition physical assets in a more concentrated location for our caps and closure product lines. So that's a very different product line where we're experiencing pinch points today, which are predominantly in our dispenser product line.

是的，哈米德，這是一個很好的問題。這是一個公平的問題。去年我們沒有削減產能。我們重新定位了產能。具體來說，您指的是我們在需求非常低的市場中進行的營運變革，以便將實體資產重新定位在更集中的位置，以用於我們的瓶蓋和瓶蓋產品線。因此，這是一個非常不同的產品線，我們今天遇到了關鍵點，這主要是在我們的分配器產品線。

So these are different movements of capacity for different product lines. So what's affecting us this quarter, which is in a strange way, a high-class problem because we've experienced most of 2023 a significant reduction in demand in our dispenser product line, predominantly related to overstock positions, and now that demand is coming back in a robust way and that's where we have pinch points. But what we referred to last year related to movement of assets, and we closed a plant in California and moved those assets into the Midwest on a closure product line, so very different products.

因此，這些是不同產品線的不同產能變動。那麼，本季影響我們的是什麼，這是一個奇怪的問題，是一個高級問題，因為我們在2023 年的大部分時間裡都經歷了分配器產品線需求的大幅減少，主要與庫存過剩有關，而現在需求正在以穩健的方式回歸，這就是我們的關鍵點。但我們去年提到的與資產轉移有關，我們關閉了加州的一家工廠，並將這些資產透過封閉產品線轉移到中西部，因此產品非常不同。

That's helpful. And then as far as the guidance is concerned for packaging, and lining it up with what's been reporting and what you're saying, it seems like second half revenue or sales would be down modestly versus first half sales. And I'm just trying to understand what the seasonality is. Again, why doesn't that coordinate with the commentary that business is doing well in packaging?

這很有幫助。然後，就包裝方面的指導意見而言，並將其與所報告的內容和您所說的內容相結合，下半年的收入或銷售額似乎會比上半年的銷售額略有下降。我只是想了解什麼是季節性。再說一次，為什麼這與包裝業務表現良好的評論不相符呢？

Yes. I think that's primarily related just naturally to the cyclicality of our business specifically as it relates to the fourth quarter of the year, we tend to see a bit lower order pattern as we get towards the holiday season. But back to my point to Ken, we still expect the second half of the year, on a year-over-year basis, to be up relative to the prior year. So nothing surprising there other than just the natural order pattern cyclicality of our business.

是的。我認為這主要與我們業務的周期性自然相關，特別是因為它與今年第四季度有關，隨著假期的臨近，我們往往會看到訂單模式下降。但回到我對肯說的觀點，我們仍然預期今年下半年的業績將年增。因此，除了我們業務的自然秩序模式週期性之外，沒有什麼令人驚訝的。

Got it. And my last question is on Aerospace. What's your exposure, if anything to what's going on with Boeing and Airbus? And anything about the inventory and the production lines being delayed?

知道了。我的最後一個問題是關於航空航天的。如果與波音和空中巴士的最新情況有關係的話，您的曝光程度如何？關於庫存和生產線延遲的情況有什麼嗎？

Okay. Well, look, both Boeing and Airbus are collectively very important and large customers, both directly through distribution and through Tier 1s. So naturally, we're tied very much to their success. What I would say about some of the announcements related to this year specifically. We don't expect that to have much of an impact on us because we're already booked into next year, and we have a backlog, we're still working through. What's on our build schedule is it's very likely to change at all as we line up our production planning for the balance of the year.

好的。嗯，看，波音和空中巴士都是非常重要的大客戶，無論是直接透過分銷還是透過一級客戶。因此，我們自然與他們的成功息息相關。我要說的是與今年具體相關的一些公告。我們預計這不會對我們產生太大影響，因為我們已經預訂了明年的訂單，而且我們還有積壓訂單，我們仍在處理中。我們的建設計劃很可能會發生變化，因為我們正在製定今年剩餘時間的生產計劃。

It appears there are no further questions at this time. I would now like to turn the floor back over to management for closing comments.

目前似乎沒有其他問題了。我現在想將發言權交還給管理層以徵求結束意見。

Operator, is it turned back to us?

接線員，它退回給我們了嗎？

Yes. It appears that there are no further questions at this time.

是的。目前看來沒有其他問題了。

Okay. Great. Thank you for joining us on our earnings call, and we look forward to updating you again next quarter.

好的。偉大的。感謝您參加我們的財報電話會議，我們期待下個季度再次向您通報最新情況。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。