TriMas Packaging, a division of TriMas, has reported an increase in operating profit for the second quarter (Q2) of financial year 2024 (FY24), reaching $18.02m from $17.28m in the same period of the previous year.
The packaging segment saw its operating profit margin percentage for Q2 FY24 lower than the prior year period, due to the prevailing certain information technology costs at the enterprise-wide level.
TriMas Packaging's net sales for the quarter ending 30 June 2024 rose by 12.5% to $131.93m, compared to $117.32m in the second quarter of FY23.
This growth was attributed to organic expansion in the personal care, beauty, and industrial end markets.
The segment’s organic sales grew by 13.0% over the quarter.
TriMas Packaging saw its quarter performance impacted by capacity constraints and related performance inefficiencies, as well as increased expedited freight costs.
These were driven by the high demand for certain personal care product lines, as customers began to restock their inventories.
TriMas president and CEO Thomas Amato said: “Within our TriMas Packaging group, we are highly encouraged by the rate of organic sales growth and are working through challenges associated with customer demand rates at peak capacity in certain product lines, similar to what we have experienced in other businesses emerging from a demand trough.
“We expect some of these items, such as expedited freight and capacity constraints, to recede as we move through the year. With respect to Specialty Products, specifically our Norris Cylinder business, we have implemented additional cost restructuring actions to better align with the current demand levels. We expect these steps will improve performance during the second half of the year, albeit on a lower sales base than anticipated."
For the first half (H1) of FY24, TriMas Packaging's net sales increased to $258.95m, from $233.54m in the same period last year.
The company's operating profit for the first six months also saw a rise, reaching $35.13m compared to $31.67m in H1 FY23.
