TriMas Corporation Reports Fourth Quarter And Full Year Results

BLOOMFIELD HILLS, Mich., March 9 -- TriMas Corporation today announced its financial results for the three months ended December 31, 2004. Compared to the prior year fourth quarter period, sales increased 20.7% to $243.0 million from $201.3 million, while the operating loss declined to $9.6 million from $14.3 million in the fourth quarter 2003. The net loss for the fourth quarter was $15.5 million versus $26.2 million in the year ago period or a diluted loss per share of $0.78 compared to $1.31.

  Full Year 2004 Highlights

   * Sales increased 15.4 % in 2004 to $1,045.2 million from $905.4 million
     in 2003 due to strong demand in all business segments.  The year over
     year sales increase was 11.7% when adjusted for steel price increases
     recovered from customers.

   * Operating income increased $33.7 million to $62.4 million from $28.7
     million in 2003, which included a net loss on sale-leaseback
     transactions of $18.2 million.

   * The reported net loss of $2.2 million represented a $28.7 million
     improvement over the net loss reported of $30.9 million in 2003.

   * The Company completed its multi-year restructuring and integration
     activities and is now well-positioned to focus on profitability and
     cash flow generation.

  Fourth Quarter Highlights

   * The Company's fourth quarter net sales increased 20.7% to $243.0
     million, from $201.3 million for the three months ended December 31,
     2003.  Excluding the impact of steel price increases recovered from
     customers, sales increased 14.8% compared to the prior year's fourth
     quarter, as each of the Company's business segments regained year-over-
     year sales momentum.  After adjusting for steel price increases, sales
     at Rieke Packaging Systems increased 12.5%, at Cequent Transportation
     Accessories 19.5%, at Fastening Systems 9.0%, and at Industrial
     Specialties 12.5%, when compared to the fourth quarter a year ago.

   * As highlighted in the Fourth Quarter Financial Summary, the operating
     loss improved $4.7 million as compared to the same period a year ago.
     For the fourth quarter 2004, the operating loss reported included $10.7
     million in asset impairment charges due to the completed relocation of
     operations and shutdown of redundant facilities and equipment in our
     Fastening Systems (Lakewood, OH) and Industrial Specialties
     (Netcong, NJ) segments.  Further, the Company also recorded $4.5
     million in non-cash charges in the quarter related to impairment of
     customer relationship intangibles as the Company no longer maintains a
     sales relationship with certain customers.  This compares with a
     similar non-cash charge of $18.6 million recorded in the fourth quarter
     2003 related to impairment of customer relationship intangibles ($11.0
     million) and goodwill ($7.6 million).  In the fourth quarter 2004, the
     Company increased its reserves for asbestos litigation defense costs by
     $2.7 million and also expensed $1.1 million of costs previously
     deferred related to its proposed offering of equity securities because
     the offering had been delayed in excess of 90 days.

   * The Company incurred a net loss of $15.5 million, or $0.78 per share
     compared to a net loss per share of $1.31 in the fourth quarter 2003.

   * The Company spent $2.1 million during the quarter in consolidation,
     restructuring and integration efforts, principally in its Fastening
     Systems and Industrial Specialties segments.

"The fourth quarter represented solid year-over-year growth in both sales and operational earnings. The fundamentals within TriMas are very strong; we have completed our multi-year restructuring initiatives, implemented customer pricing strategies to maximize recovery of steel cost increases and have aligned our cost structure consistent with expected customer demand levels. Our sales momentum evidenced across all of our business segments during 2004 is expected to continue into 2005 and is further evidence of our renewed focus on product development and market share attainment. We expect the continuation of year-over-year earnings growth and increased cash flow generation as we enter 2005," said Grant Beard, TriMas President and CEO.

  Fourth Quarter Financial Summary
  (unaudited - in millions, except per
   share amounts)                         For the Quarter Ended December 31
                                             2004        2003      % Change
  Sales                                     $243.0      $201.3       20.7%

  Operating loss                             $(9.6)     $(14.3)      32.8%

  Net loss                                  $(15.5)     $(26.2)      40.5%

  Loss per share                            $(0.78)     $(1.31)      40.5%

  Other Data:
    - Depreciation and amortization, as
     reported                                $13.9       $20.7      (32.6%)
         Customer intangible adjustments      (4.5)      (11.0)
                                              $9.4        $9.7       (2.3%)

    - Interest expense                      $(17.6)     $(15.7)      12.1%

    - Other income (expense), net            $(0.5)       $0.2       17.1%

    - Income tax benefit                     $12.1        $3.6     N/A

    - Impairments and Other Charges:
        * Asset impairment                   $10.7         $-
        * Customer intangible adjustments      4.5        11.0
        * Goodwill impairment                   -          7.6
        * Asbestos litigation defense costs    2.7          -
        * Equity offering costs                1.1          -
        * Legacy stock expense                  -          1.1

  Segment Results
  Rieke Packaging Systems

Rieke's 2004 fourth quarter sales of $31.1 million increased 15.2% compared to the year ago period (12.5% excluding the impact of steel recovery). Operating profit increased to $5.9 million during the quarter ended December 31, 2004 from $3.4 million in fourth quarter 2003, due to the continued ramp-up and growth in sales of new products as well as improved core product sales. In the fourth quarter of 2003, a $1.2 million non-cash charge was recorded related to customer intangibles. Rieke launched another new pump dispensing product during the quarter and expects to realize continued increasing sales from both recent and further anticipated new product launches during the first half of 2005.

Cequent Transportation Accessories

Cequent's 2004 fourth quarter sales of $106.1 million represented an increase of 26.1% compared to the prior year period. Even after adjusting for steel surcharges recovered from customers, sales increased a solid 19.5% compared with the fourth quarter 2003. Operating profit increased to $2.2 million from $1.0 million a year ago as cost initiatives implemented late during the third quarter of 2004 quickly impacted operating profitability.

Industrial Specialties Group

Sales of the Industrial Specialties group increased $9.6 million or 17.4% to $64.6 million, during the fourth quarter 2004 as the group's six businesses continued to experience strong demand as compared to the fourth quarter a year ago. Adjusting for the impact of steel cost increases recovered from customers, sales increased 12.5% compared to the prior year's quarter. The group's operating profit in the fourth quarter 2004 was $0.2 million after consideration of a non-cash asset impairment charge of $2.3 million, increased legal expenses of $2.7 million related to asbestos litigation defense costs and $0.7 million due to the completion of Compac's move to the Hackettstown, NJ plant during the quarter. The operating loss of $4.1 million in the fourth quarter of 2003 reflected a $7.6 million non-cash charge associated with goodwill impairment and a $2.5 million non-cash charge related to customer intangibles.

Fastening Systems Group

Sales of the Fastening Systems group in fourth quarter 2004 increased 17.0% (9.0% after adjusting for steel price increases recovered from customers) as compared to the fourth quarter 2003, increasing to $41.2 million from $35.2 million. The group reported an overall operating loss for the 2004 quarter of $11.6 million, as compared to an operating loss of $7.9 million in the fourth quarter 2003. The current quarter's operating loss included non- cash charges totaling $12.2 million related to impairment of assets ($8.3 million) and customer relationship intangible assets ($3.9 million). In the fourth quarter of 2003, a $5.4 million non-cash charge was recorded related to the impairment of customer relationship intangible assets.

Financial Position

TriMas ended the year with total assets of $1,522.2 million, debt of $738.0 million and $48.0 million outstanding under its receivables securitization facility. Net cash provided by operating activities for the years ended December 31, 2004 and 2003 was $42.6 million and $41.4 million, respectively.

Conference Call

TriMas will broadcast its fourth quarter earnings conference call on Wednesday, March 9, 2005 at 11:00 a.m. EST. President and Chief Executive Officer Grant Beard and Chief Financial Officer E.R. "Skip" Autry will discuss the Company's recent financial performance and respond to questions from the investment community.

To participate by phone, please dial: (800) 430-4415. Callers should ask to be connected to the TriMas fourth quarter conference call (reservation number 21233705). If you are unable to participate during the live teleconference, a replay of the conference call will be available beginning March 9th at 2:00 p.m. EST through March 16th at 2:00 p.m. EST. To access the replay, please dial: (800) 633-8284 and use reservation number 21233705.

Cautionary Notice Regarding Forward-Looking Statements

This release contains "forward-looking" statements, as that term is defined by the federal securities laws, about our financial condition, results of operations and business. Forward-looking statements include: certain anticipated, believed, planned, forecasted, expected, targeted and estimated results along with TriMas' outlook concerning future results. When used in this release, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," or future or conditional verbs, such as "will," "should," "could," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including without limitation, management's examination of historical operating trends and data, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for these views. However, there can be no assurance that management's expectations, beliefs and projections will be achieved. These forward-looking statements are subject to numerous assumptions, risks and uncertainties and accordingly, actual results may differ materially from those expressed or implied by the forward-looking statements. We caution readers not to place undue reliance on the statements, which speak to conditions only as of the date of this release. The cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. We do not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Risks and uncertainties that could cause actual results to vary materially from those anticipated in the forward-looking statements included in this release include general economic conditions in the markets in which we operate and industry-based factors such as: technological developments that could competitively disadvantage us, increases in our raw material, energy, and healthcare costs, our dependence on key individuals and relationships, exposure to product liability, recall and warranty claims, compliance with environmental and other regulations, and competition within our industries. In addition, factors more specific to us could cause actual results to vary materially from those anticipated in the forward-looking statements included in this release such as our substantial leverage, limitations imposed by our debt instruments, our ability to successfully pursue our stated growth strategies and opportunities, as well as our ability to identify attractive and other strategic acquisition opportunities and to successfully integrate acquired businesses and complete actions we have identified as providing cost-saving opportunities.

                            TriMas Corporation
                              Balance Sheet
                        December 31, 2004 and 2003
                    (unaudited - dollars in thousands)

                                                    2004              2003
                 Assets
  Current assets:
    Cash and cash equivalents                     $3,090            $6,780
    Receivables                                   93,390           118,970
    Inventories                                  180,040           124,090
    Deferred income taxes                         17,530            10,900
    Prepaid expenses and other current
     assets                                        8,450             8,440
       Total current assets                      302,500           269,180
    Property and equipment, net                  198,610           187,420
    Goodwill                                     657,980           658,900
    Other intangibles                            304,910           322,750
    Other assets                                  58,200            61,780
       Total assets                           $1,522,200        $1,500,030

                   Liabilities and Shareholders' Equity

  Current liabilities:
    Current maturities, long-term debt            $2,990           $10,920
    Accounts payable                             135,230            94,130
    Accrued liabilities                           68,180            75,100
    Due to Metaldyne                               2,650             4,400
       Total current liabilities                 209,050           184,550
  Long-term debt                                 735,030           725,060
  Deferred income taxes                          133,540           149,030
  Other long-term liabilities                     35,160            37,770
  Due to Metaldyne                                 4,260             6,960
       Total liabilities                       1,117,040         1,103,370

  Commitments and contingencies

  Preferred stock $0.01 par: Authorized
   100,000,000 shares;
   Issued and outstanding: None                      -                 -
  Common stock, $0.01 par: Authorized
   400,000,000 shares;
   Issued and outstanding: 20,010,000
   shares                                            200               200
  Paid-in capital                                399,450           399,870
  Retained deficit                               (40,430)          (38,240)
  Accumulated other comprehensive
   income                                         45,940            34,830
       Total shareholders' equity                405,160           396,660
       Total liabilities and
        shareholders' equity                  $1,522,200        $1,500,030

                            TriMas Corporation
                         Statement of Operations
     For the Three Months and Years Ended December 31, 2004 and 2003
     (unaudited - dollars in thousands, except for per share amounts)

                                 Three Months Ended
                                     December 31,    Year Ended December 31,
                                  2004        2003        2004        2003
  Net sales                    $242,950    $201,290  $1,045,160    $905,400
  Cost of sales                (191,620)   (153,730)   (793,750)   (673,430)
       Gross profit              51,330      47,560     251,410     231,970
  Selling, general and
   administrative expenses      (49,360)    (52,330)   (177,610)   (175,520)
  Loss on dispositions of
   property and equipment          (910)     (1,900)       (790)    (20,110)
  Impairment of assets          (10,650)        -       (10,650)        -
  Impairment of goodwill            -        (7,600)        -        (7,600)
       Operating profit
        (loss)                   (9,590)    (14,270)     62,360      28,740
  Other income (expense), net:
    Interest expense            (17,630)    (15,670)    (67,650)    (64,780)
    Other income (expense)         (450)        230      (1,190)       (480)
       Other expense, net       (18,080)    (15,440)    (68,840)    (65,260)
  Loss before income tax
   (expense) benefit            (27,670)    (29,710)     (6,480)    (36,520)
  Income tax benefit             12,130       3,550       4,290       5,590
  Net loss                     $(15,540)   $(26,160)    $(2,190)   $(30,930)

  Basic loss per share:
  Net loss attributed to
   common stock                  $(0.78)     $(1.31)     $(0.11)     $(1.54)
  Weighted average common
   shares                    20,010,000  20,010,000  20,010,000  20,047,090

  Diluted loss per share:
  Net loss attributed to
   common stock                  $(0.78)     $(1.31)     $(0.11)     $(1.54)
  Weighted average common
   shares                    20,010,000  20,010,000  20,010,000  20,047,090

                            TriMas Corporation
            Company and Business Segment Financial Information
                   For the Three Months and Year Ended
                        December 31, 2004 and 2003

                                     Three Months Ended      Year Ended
  (unaudited - in thousands)            December 31,         December 31,
                                      2004      2003       2004       2003
  Rieke Packaging Systems
    Net sales                       $31,060   $26,960    $129,220  $119,100
    Operating profit                 $5,870    $3,440     $29,970   $25,300

  Cequent Transportation
   Accessories
    Net sales                      $106,090   $84,100    $511,300  $427,410
    Operating profit                 $2,220      $950     $51,610   $37,370

  Industrial Specialties Group
    Net sales                       $64,620   $55,040    $248,680  $217,890
    Operating profit (loss)            $160   $(4,090)    $20,200    $7,460

  Fastening Systems
    Net sales                       $41,180   $35,190    $155,960  $141,000
    Operating loss                 $(11,620)  $(7,860)   $(17,420) $(16,010)

  Total Company
    Net sales                      $242,950  $201,290  $1,045,160  $905,400

    Operating profit (loss)         $(9,590) $(14,270)    $62,360   $28,740

    Corporate expenses and
     management fee                 $(6,220)  $(5,580)   $(22,000) $(20,550)

    Other Data:
      - Depreciation and
         amortization, as reported  $13,920   $20,650     $44,510   $54,850
        Customer intangible
         adjustments                $(4,490) $(11,000)    $(4,490) $(11,000)
                                     $9,430    $9,650     $40,020   $43,850

      - Interest expense           $(17,630) $(15,670)   $(67,650) $(64,780)

      - Other income (expense),
         net                          $(450)     $230     $(1,190)    $(480)

      - Income tax benefit          $12,130    $3,550      $4,290    $5,590

      - Impairments and Other Charges:

          * Asset impairment        $10,650        $-     $10,650        $-
          * Customer intangible
             adjustments              4,490    11,000       4,490    11,000
          * Goodwill impairment           -     7,600           -     7,600
          * Loss on sale-leaseback
             of property & equipment      -         -           -    18,200
          * Asbestos litigation
             defense costs            2,700         -       2,700         -
          * Equity offering costs     1,140         -       1,140         -
          * Legacy stock expense          -     1,130           -     4,830

  About TriMas

Headquartered in Bloomfield Hills, Mich., TriMas is a diversified growth company of high-end, specialty niche businesses manufacturing a variety of products for commercial, industrial and consumer markets worldwide. TriMas is organized into four strategic business groups: Cequent Transportation Accessories, Rieke Packaging Systems, Fastening Systems, and Industrial Specialties. TriMas has nearly 5,000 employees at 80 different facilities in 10 countries. For more information, visit http://www.trimascorp.com/.