BRISTOL, Conn.--(BUSINESS WIRE)--Dec. 19, 2008--Barnes Group Inc. (NYSE: B), a leading international aerospace and
industrial components manufacturer and logistical services company,
today reported several recent actions to improve the performance of the
Company's Logistics and Manufacturing Services segment in Europe.
Barnes Group's Logistics and Manufacturing Services segment is exiting
certain non-core activities within its U.K. operations. The U.K.
Motalink van business, based in Corsham, England, has been sold. In
addition, certain assets of the U.K. direct sales to car dealerships
unit and the systems business and catalog unit, based in Corsham,
England, were sold. Terms of these transactions were not disclosed.
The Logistics and Manufacturing Services management team in Europe is
also exiting the Corsham facility, eliminating the telesales and back
office functions currently at the site. The Toolcom, U.K., and the Kent,
U.K., businesses are not impacted by these actions. The Dunfermline,
U.K. site will continue to support the Toolcom and Kent businesses. The
results of the discontinued businesses, including the costs of the
actions related to the exit, will be segregated and treated as
discontinued operations in the Company's 2008 financial statements.
"The Logistics and Manufacturing Services European management team is
actively working to stabilize and improve the operational performance
and cost structure of the European operations," said Patrick Dempsey,
President, Logistics and Manufacturing Services, Barnes Group Inc.
"Eliminating non-core underperforming assets in the U.K. will provide
for a more focused approach to the market," continued Dempsey.
The total charges associated with these actions are estimated to be
approximately $3.7 million before taxes, which will be recorded in the
fourth quarter of 2008. In addition, a tax expense of approximately $3.7
million will be recorded for the write-off of deferred taxes based on
expected recoverability. Revenues associated with the exited businesses
were approximately $20.0 million in 2007. The reduction in fixed cost
structure is expected to put Barnes Distribution Europe in a stronger
position for success in the new year and the longer term.
Barnes Group Inc. (NYSE:B) is a diversified global manufacturer and
logistical services company focused on providing precision component
manufacturing and operating service support. Founded in 1857, the 5,700
dedicated employees at more than 70 locations worldwide are committed to
achieving consistent and sustainable profitable growth. For more
information, visit www.BGInc.com.
Barnes Group, the Critical Components People.
This release may contain certain forward-looking statements as defined
in the Private Securities Litigation and Reform Act of 1995.
Forward-looking statements are made based upon management's good faith
expectations and beliefs concerning future developments and their
potential effect upon the Company and can be identified by the use of
words such as "anticipated," "believe," "expect," "plans," "strategy,"
"estimate," "project," and other words of similar meaning in connection
with a discussion of future operating or financial performance. These
forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially from those expressed in
the forward-looking statements. The risks and uncertainties, which are
described in our periodic filings with the Securities and Exchange
Commission, include, among others, uncertainties arising from the
behavior of financial markets; future financial performance of the
industries or customers that we serve; changes in market demand for our
products and services; integration of acquired businesses; changes in
raw material prices and availability; our dependence upon revenues and
earnings from a small number of significant customers; uninsured claims;
and numerous other matters of global, regional or national scale,
including those of a political, economic, business, competitive,
regulatory and public health nature. The Company assumes no obligation
to update our forward-looking statements.
CONTACT: Barnes Group Inc.
Brian D. Koppy, 860-973-2126
Source: Barnes Group Inc.