Barnes Group reports 3 Q and 9 Month Results -
Monday October 13 11:39 AM EDT
Company Press Release
Barnes Group Sets Record Earnings for Third Quarter
Sales Increase 8 Percent Over Year Ago Period
BRISTOL, Conn.--(BUSINESS WIRE)--Oct. 13, 1997--Barnes Group Inc. (NYSE:B) today reported record earnings of 50 cents per share for the third quarter of 1997, up 14 percent from 44 cents earned in the same period a year ago. It was the most profitable third quarter in the company's 140-year history, and marked the third consecutive quarter of record year-over-year earnings.
Net income for third quarter climbed to $10.1 million, up 17 percent from $8.7 million a year ago. Sales for the quarter totaled $159 million, up 8 percent from $147 million in the third quarter of 1996.
For the first nine months of 1997, sales were $483 million, up 7 percent from $450 million reported a year ago. Net income for three quarters was $31.0 million, or $1.53 per share, up 29 percent from $24.0 million, or $1.21 per share, in the first nine months of 1996. Earnings for the nine-month period in 1997 also set a new high for the company. All per share data reflects the 3-for-1 split of the company's stock in April, 1997.
Theodore E. Martin, president and chief executive officer, said the record third quarter earnings, which included a $0.7 million foreign currency translation gain, was driven by the continued strong profit and sales performance in the company's Barnes Aerospace business. ''The entire aerospace group is capitalizing on the strong upturn in the commercial aviation market -- both for engines and airframes -- and a steady increase in new orders has pushed the backlog up 25 percent since the beginning of the year,'' he said.
''At Barnes Aerospace, sales were up 35 percent for the third quarter over last year and operating income advanced sharply in each of the group's three business units,'' Martin said. ''Our precision machining business continues to make significant gains in penetrating the market for high-thrust, light-weight aircraft engines,'' he added, ''and in improving productivity and customer response time.''
Significant gains in sales and profits were also made by the group's engine component overhaul and repair business, both in the U.S. and Singapore, and by its advanced fabrications units in Michigan and Utah. ''We're seeing the company's diversification strategy working effectively,'' Martin said. ''The gains in our aerospace group are offsetting a slowdown among U.S. automotive manufacturers, which is having an impact on suppliers industry-wide, including Associated Spring.''
Martin noted that while sales for Associated Spring rose slightly in the third quarter of a year-ago, operating income declined. ''This is due in part to softer domestic automotive sales, slower growth in electronics and telecommunications markets, and higher fixed costs related to the expansion of our Milwaukee plant,'' he said.
''Associated Spring's non-automotive plants performed well,'' he noted, ''particularly in Corry, Penn., and Arden, N.C., and the group's Raymond distribution business showed double-digit gains in both sales and profits. The company's NASCO joint venture in Kentucky, which serves Japanese automotive transplants in the U.S., also turned out in good results,'' he added.
At Bowman Distribution, Martin said that third quarter sales and profits were up, despite the negative impact caused by the UPS strike. The group continued to makes gains in penetrating large, multi-location customers in targeted transportation and industrial market.
''Bowman's North American operations continued to reduce its distribution costs and upgrade its sales management and sales/service account teams,'' Martin said. ''Progress was also made in the development of a state-of-the-art MIS network that will take Bowman to a new level in servicing large customers who look to Bowman for total support in maintaining their operating facilities.''
In Europe, Bowman continues to improve its profit picture, particularly in the U.K., reflecting gains made in sales, productivity and lower operating expenses.
''Looking ahead, we expect the strong momentum built up since 1994 to continue through the remainder of this year, as long as our primary markets continue their buoyant performance,'' Martin said. ''We see a strong aircraft market continuing to provide the impetus for double-digit sales and profit growth at Barnes Aerospace; further advancements in technology leading to increasingly better results at Associated Spring, and stronger large-account sales and cost controls propelling Bowman's North American and European profits.''
''As a result of these efforts, we expect the company to turn in the third consecutive year of record performance in 1997,'' Martin said.
Barnes Group Inc. is a $650-million diversified international company headquartered in Bristol, Conn. It is a leading manufacturer of complex metal components and precision springs for industrial, automotive, and aerospace markets, and a major distributor of maintenance, repair and replacement MRO products to industrial and transportation markets.
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