This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Barnes Group Inc. Reports Third Quarter 2013 Financial Results

Barnes Group Inc. (NYSE: B), an international aerospace and industrial manufacturer and service provider, today reported financial results for the third quarter of 2013. Net sales from continuing operations increased 16% to $269.5 million from $232.5 million in the third quarter of 2012, driven by the sales contribution of the Synventive business and organic sales growth of 5%.

Income from continuing operations for the third quarter was $21.4 million, or $0.39 per diluted share, up 30% from $0.30 in the prior year period. On an adjusted basis, income from continuing operations was up 8% from $0.36 per diluted share a year ago. Last year’s adjusted diluted earnings from continuing operations excluded the impact of $5.1 million pre-tax, or $0.06 per diluted share, of short-term purchase accounting adjustments and transaction costs related to the acquisition of Synventive. A table reconciling the 2012 non-GAAP adjusted results presented in this release to our GAAP results is included at the end of this press release. In the current quarter, income from continuing operations includes an $8.6 million pre-tax inventory valuation charge related to exchange engine parts within the Aerospace repair and overhaul business.

On October 1, 2013 the Company announced it had entered into a definitive agreement to acquire privately held Männer, a leader in high precision mold-making, valve gate hot runner systems, and system solutions for the medical/pharmaceutical, packaging, and personal care/health care industries. The acquisition is anticipated to close on October 31, 2013. Following the closing, Männer will operate as a business unit within Barnes Group’s Industrial Segment.

“During the third quarter we continued to execute our growth strategy of focusing on differentiated products and processes. We announced the pending acquisition of Männer, a recognized brand name and premium supplier of complex, highly-engineered molds and hot runner systems. Männer’s end markets are a good complement to those of our existing industrial businesses” said Patrick J. Dempsey, President and Chief Executive Officer of Barnes Group Inc. “Additionally, we delivered strong performance in our Industrial segment and solid sales growth in our Aerospace OEM business, while our results in the Aerospace aftermarket did not meet our expectations,” continued Dempsey.
($ millions; except per share data)     Three months ended September 30,     Nine months ended September 30,
Unaudited 2013     2012     Change 2013     2012     Change
Net Sales $269.5 $232.5 $37.0     15.9 % $800.4 $670.6 $129.9     19.4 %
Operating Income $28.0 $22.5 $5.5 24.7 % $89.1 $72.9 $16.3 22.3 %
% of Sales 10.4 % 9.7 % 0.7 pts. 11.1 % 10.9 % 0.2 pts.
Income from Continuing Operations $21.4 $16.0 $5.4 33.4 % $46.0 $53.1 ($7.1) (13.4) %
Net Income $20.9 $18.5 $2.4 13.1 % $243.7 $65.5 $178.2 NM
 
Income from Continuing Operations Per Diluted Share $0.39 $0.30 $0.09 30.0 % $0.84 $0.97 ($0.13) (13.4) %
 
(Loss) Income from Discontinued Operations Per Diluted Share ($0.01) $0.04 ($0.05) NM $3.60 $0.22 $3.38 NM
 
Net Income Per Diluted Share     $0.38       $0.34       $0.04     11.8 %     $4.44       $1.19       $3.25     NM  
NM = Not Meaningful

Aerospace
  • Third quarter 2013 sales were $101.7 million, up 3% from $98.4 million in the same period last year. A sales increase in original equipment manufacturing (“OEM”) was partially offset by declines in aftermarket repair and overhaul and spare parts sales.
  • Operating profit of $7.2 million for the third quarter of 2013 was down 49% from the prior year period of $14.1 million. Operating profit benefited from the impact of higher OEM sales and lower employee related costs, offset by an $8.6 million inventory valuation charge related to exchange engine parts within the aftermarket repair and overhaul business, lower aftermarket sales, and higher new product introduction costs to support future growth programs.

Industrial
  • Third quarter 2013 sales were $167.7 million, up 25% from $134.1 million in the same period last year. The increase was driven by Synventive’s sales contribution, organic sales growth of 6%, and favorable foreign exchange of $0.5 million.
  • Operating profit of $20.9 million for the third quarter of 2013 was up $12.5 million from the prior year period driven by the profit contribution of Synventive, the profit impact of higher organic sales, and productivity improvements. During the 2012 period, operating profit was negatively impacted by $5.1 million of short-term purchase accounting adjustments and transaction costs related to the acquisition of Synventive.

Additional Information
  • Interest expense decreased to $2.4 million, down from $3.2 million in the prior year period primarily as a result of lower average borrowings in the current quarter as a portion of the proceeds from the Barnes Distribution North America sale were used to reduce debt.
  • The Company’s effective tax rate from continuing operations for the third quarter of 2013 was 15.8% compared with 12.7% in the third quarter of 2012 and 13.5% for full year 2012. The effective tax rate increase in the third quarter 2013 versus the full year 2012 rate was mainly due to several discrete foreign tax related items in 2012 and an increase in the Company’s effective tax rate in Sweden, partially offset by a projected change in earnings attributable to higher-taxing jurisdictions.

Updated 2013 Outlook

Barnes Group is updating its 2013 guidance, which excludes the future impact of the announced Männer acquisition. The Company now expects 2013 revenue from continuing operations to grow approximately 16% from 2012. Excluding $10.5 million pre-tax of non-recurring costs associated with the Company’s CEO transition recorded in the first quarter, adjusted operating margins are expected to be in the range of 12.5% to 13.0% for 2013. GAAP earnings per diluted share from continuing operations are anticipated to be in the range of $1.33 to $1.38.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs