Wednesday April 15, 12:01 pm Eastern Time
Company Press Release
Barnes Group Inc. Reports 18% Earnings Per Share Increase for First Quarter on 7% Sales Gain
BRISTOL, Conn.--(BUSINESS WIRE)--April 15, 1998--Barnes Group Inc. (NYSE:B - news) today reported an 18 percent increase in per share earnings on a seven percent gain in sales for the first quarter ended March 31, 1998. The first quarter 1998 earnings per share of $.59 set an all time record, compared to $.50 for 1997. Diluted earnings per share were $.58 for 1998 compared to $.49 for 1997.
Barnes Group's first quarter results represent the eighth consecutive quarter the company has reported record breaking earnings. Theodore E. Martin, president and chief executive officer, said he was pleased that the company's first quarter performance was supported by strong earnings at all three of the company's businesses, with Barnes Aerospace leading the way with a significant year-over-year profit gain on a 26 percent increase in sales.
Net income for the first quarter rose to $11.8 million, a 17 percent increase, compared to $10.1 million for 1997. Consolidated sales for the quarter were $169 million, an increase of 6.8 percent, compared to $158 million for the same period last year.
Barnes Aerospace maintained the momentum established in 1997 and turned in exceptional sales and profit gains as it continued to capitalize on the strong upturn in the commercial aviation market for both engines and airframes. Martin stated that ''strong gains were made in all of Barnes Aerospace's businesses, particularly its precision machining business.''
Bowman Distribution's double-digit profit gains resulted from the penetration of large, multi-location maintenance, repair and operating supply customers in North America and Europe, and from continued cost containment efforts. Martin further added, ''Bowman continued to be highly successful in increasing its product lines through supplier partnerships and alliances, thus providing its customers with the right innovative solutions for their particular needs.'' Effective the beginning of this year, Raymond Distribution, a former Associated Spring business, became part of Bowman in order to maximize synergies in Bowman's distribution operations. Raymond also contributed to Bowman's excellent first quarter performance as it continued the profitable expansion of its distribution network in Europe.
Associated Spring reported higher first quarter sales, while profits were equal to last year's strong first quarter performance. Although softer demand continued with telecommunications and electronics customers, the group's North American operations turned in a solid year-over-year performance. Martin added that Associated Spring's Mexico operation reported an excellent first quarter, indicating a successful resolution of the operating issues encountered in the second quarter of last year. ''Associated Spring continues to make solid gains expanding its industrial and transportation customer base, particularly with customers who benefit from the group's intensive use of technology,'' said Martin.
Martin said, ''The company is committed to continued growth and is on track to become a leading company in distribution and manufacturing worldwide. The company is confident that its strategies for its three businesses are working successfully, and we believe the company will continue its momentum throughout 1998. We expect 1998 to be another outstanding year.''
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 operating supplies to industrial and transportation markets.
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BARNES GROUP INC.
FINANCIAL HIGHLIGHTS
(Dollars in millions, except per share data)
(Unaudited)
Three Months Ended March 31,
1998 1997
INCOME STATEMENT
Net sales $ 168.9 $ 158.1
Operating income 19.4 16.8
Net income 11.8 10.1
Income per share - basic $ 0.59 $ 0.50
- diluted 0.58 0.49
Dividends per share 0.17 0.15
-0-
March 31, Dec. 31,
1998 1997
BALANCE SHEET
Cash and cash equivalents $ 40.4 $ 32.5
Working capital 120.5 113.1
Borrowings 68.8 62.4
Shareholders' equity 190.8 180.9
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Contact:
Barnes Group Inc.
T.M. Murphy or R.D. Lipira, 860/583-7070 |
