TriMas focused on annual debt reduction, organic growth

By Jennifer Lanning Drey

Portland, Ore., March 14 - TriMas Corp. plans to reduce debt annually while focusing heavily on organic growth, Grant Beard, TriMas' chief executive officer, said during a Friday presentation at the Lehman Brothers 2008 High Yield Bond and Syndicated Loan Conference in Orlando, Fla.

"We are absolutely committed to both growing our company but also managing down our balance sheet and making sure our balance sheet gets stronger over time," Beard said.

"We see a macro market that's a little challenged but we want to really focus on our balance sheet and make sure we are continually deleveraging this business and making sure that our balance sheet is an asset, not a liability."

TriMas had total debt of $616 million at Dec. 31.

Beard believes there are opportunities for the company to use new products to promote organic growth within its packaging systems, energy products and industrial specialties businesses.

"We see great opportunities, great paybacks and the ability to get returns quickly," Beard said.

Though not interested in large acquisitions, the company would consider small, accretive and strategically relevant ones.

"I think that we want to be appropriately open to small product-based acquisitions, but we have no interest in anything that puts further burden onto our balance sheet," Beard said.

TriMas is also looking to grow internationally and has a continued focus on cost management that involves reducing fixed costs in the United States.

TriMas is a Bloomfield Hills, Mich., manufacturer of engineered products.

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