TRIMAS CORPORATION (NASDAQ:TRS) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05. Costs Associated with Exit or Disposal Activities.
plan to cease production at its Lamons Gasket (Lamons) Reynosa,
Mexico facility, which is included in its Energy segment.
Management decided the added capacity from the recently launched
Reynosa facility would not be needed as a result of prolonged lower
crude exploration and refining activity, leading to significantly
lower end market demand, as well as improved manufacturing
efficiency at a sister production location. As such, Lamons will
consolidate production at its Reynosa facility into its Houston,
Texas facility. Lamons expects to exit the facility by June 30,
2017.
to range from $2.0 million to $2.5 million, approximately half of
which are expected to be non-cash related. These charges are
primarily related to planned asset relocation and disposition, as
well as expected employee separation costs. In addition, Lamons is
party to a lease agreement for the Reynosa facility, for which it
has future non-cancellable rent obligations of approximately $4.5
million following the anticipated exit date. The Company may incur
a charge to the extent this obligation is greater than estimated
future sublease recoveries. All estimated amounts are subject to
change until finalized. Charges related to plant relocation and
employee separation costs are expected to be recognized during the
period from March 28, 2017 through June 30, 2017, and the charge,
if any, for unrecoverable lease obligations will be recognized upon
the cease-use date of the plant, which is expected to be in second
quarter 2017.
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements give current expectations or forecasts of future events
and are not guarantees of future performance. They are based on
management’s expectations that involve a number of business risks
and uncertainties, any of which could cause actual results to
differ materially from those expressed in or implied by the
forward-looking statements. These forward-looking statements can be
identified by the use of forward-looking words, such as may, could,
should, estimate, project, forecast, intend, expect, anticipate,
believe, target, plan or other comparable words, or by discussions
of strategy that may involve risks and uncertainties. In
particular, the estimated costs and charges described in this
Current Report on Form 8-K are forward-looking statements. Factors
that could cause actual results to differ materially include, but
are not limited to:
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the timing of the exit from the affected facility;
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separation and severance amounts that differ from original
estimates; |
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amounts for non-cash charges relating to property, plant and
equipment that differ from the original estimates; |
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the ability to recover future lease obligations for the
plant; and |
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the success of our cost savings and restructuring measures.
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realized, although we believe we have been prudent in our plans and
assumptions. Achievement of future results is subject to risks,
uncertainties and inaccurate assumptions. Should known or unknown
risks or uncertainties materialize, or should underlying
assumptions prove inaccurate, actual results could vary materially
from those anticipated, estimated or projected. Investors should
bear this in mind as they consider forward-looking statements.
statements, whether as a result of new information, future events
or otherwise, except as required by law. You are advised, however,
to consult any further disclosures we make on related subjects in
our reports on Form 10-Q, 8-K and 10-K that we provide to the
Securities and Exchange Commission. You should understand that it
is not possible to predict or identify all risk factors.
Consequently, you should not consider any list to be a complete set
of all potential risks or uncertainties.
that it has exited a manufacturing plant located in Wolverhampton,
United Kingdom and has taken actions to cease production at a plant
located in Reynosa, Mexico. Both of these plants are part of the
Companys Lamons business, which is reported in its Energy segment.
A copy of the press release is included as Exhibit 99.1 to this
Form 8-K and is incorporated herein by reference.
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Exhibit
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Description
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99.1
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Press release dated April 3, 2017
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About TRIMAS CORPORATION (NASDAQ:TRS)
TriMas Corporation is a designer, manufacturer and distributor of engineered and applied products for commercial, industrial and consumer markets. The Company operates through four segments: Packaging, Aerospace, Energy and Engineered Components. The Packaging segment is a designer, manufacturer and distributor of engineered closure and dispensing systems for a range of end markets, including steel and plastic industrial, and consumer packaging applications. The Aerospace segment is a designer and manufacturer of a range of products for use in the aerospace industry. The Energy segment is a manufacturer and distributor of metallic and non-metallic gaskets, bolts, industrial fasteners and specialty products for the petroleum refining, petrochemical, oil field and industrial markets. The Engineered Components segment is a designer, manufacturer and distributor of high-pressure and acetylene cylinders for the transportation, storage and dispensing of compressed gases. TRIMAS CORPORATION (NASDAQ:TRS) Recent Trading Information
TRIMAS CORPORATION (NASDAQ:TRS) closed its last trading session down -0.38 at 20.38 with 335,519 shares trading hands.