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|Barnes Group Takes Additional Actions to Address Continuing Economic Weakness|
|BRISTOL, Conn., Dec 20, 2001 (BUSINESS WIRE) -- Barnes Group Inc. (NYSE: B)
today announced the latest in a series of actions that are aimed at reducing the
Company's infrastructure and costs in light of the ongoing weak economic
Barnes Group has begun to realign the management of the sales organization at Barnes Distribution, and will close its Associated Spring plant located in Dallas, Texas, by the second quarter of 2002. The total number of employees affected by these actions is approximately 100, including 80 at Dallas. Affected employees are being offered severance packages.
"We have been reducing staff throughout Associated Spring for over a year now, and have announced the consolidation of several distribution centers at Barnes Distribution," said Edmund M. Carpenter, Barnes Group's President and CEO. "These latest actions address the need to further position our manufacturing capacity in line with expected market demand in the industrial and transportation markets. In addition, we are realigning the sales management organization at Barnes Distribution to focus on large and corporate account customer growth, and to streamline the unit," Carpenter continued.
As a result of the steps announced today, the Company will incur total pre-tax costs of approximately $6-7 million. This includes a charge of approximately $5 million to be taken in the quarter ending December 31, 2001, the after-tax effect of which is expected to be approximately $3 million, or $0.15 - $0.17 per diluted share. The remaining $1-2 million will be expensed in the first half of 2002. However, related cost savings are expected to slightly exceed these expenses during the full year 2002 period. Furthermore, these actions will result in positive after-tax cash flow of approximately $1 million.
Barnes Group will announce fourth quarter and full-year 2001 earnings on February 8, 2002.
"While the decision to reduce staff is always difficult, this is a uniquely challenging economic environment. I believe these steps leave us far better positioned to achieve our objectives of generating profitable growth and creating long-term shareholder value," Carpenter concluded.
Barnes Group Inc. (www.barnesgroupinc.com) is a diversified international manufacturer of precision metal parts and distributor of industrial supplies, serving a wide range of markets and customers. Founded in 1857 and headquartered in Bristol, Connecticut, Barnes Group consists of three businesses with 2000 sales of $740 million: Associated Spring, North America's largest manufacturer of precision mechanical and nitrogen gas springs; Barnes Aerospace, a manufacturer and repairer of highly engineered aircraft engine and airframe components and assemblies; and Barnes Distribution, an international distributor of maintenance, repair and operating supplies. Approximately 5,200 dedicated employees at more than 50 locations worldwide contribute to Barnes Group Inc.'s success.
This release may contain certain forward-looking statements as defined in the Public Securities Litigation and Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements. Investors are encouraged to consider these risks and uncertainties as described within the Company's periodic filings with the Securities and Exchange Commission, including the following: the Company's ability to achieve infrastructure reductions on schedule and to realize projected savings; changes in market demand for the types of products and services produced and sold by Barnes Group; the Company's success in identifying, and attracting customers in, new markets; the Company's ability to develop new and enhanced products to meet customers' needs timely; changes in worldwide economic and political conditions; interest and foreign exchange rate fluctuations; and regulatory changes.
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