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|Barnes Group Earnings Per Share Up 20 Percent; Sales Set New Record|
Bristol, Connecticut, July 17, 2000---Barnes Group Inc. (NYSE: B) today announced that diluted earnings per share were $0.49 for the second quarter of 2000, an increase of 20 percent from $0.41 per diluted share for the second quarter of 1999. Net income for the quarter ended June 30, 2000 was $9.1 million, up 11 percent from $8.2 million for the same period a year ago. Net sales for the second quarter of 2000 were $188.5 million, the highest quarterly sales in the company’s history, up 21 percent from net sales of $156.3 million last year. This was the second consecutive quarter in which Barnes Group set a new sales record, reflecting strong demand in most of the company’s domestic markets, the company’s recent acquisitions, and continued foreign sales growth. Foreign sales were 25 percent of total sales during the most recent quarter, versus 22 percent in the same year-ago period.
“We are pleased with this quarter’s results, which met our expectations on both the top and bottom line,” said Edmund M. Carpenter, Barnes Group Inc.’s president and chief executive officer. “We are continuing to execute on our objective of delivering profitable growth that is sustainable over the long term,” Carpenter added.
Sales at Associated Spring were $86.2 million for the second quarter of 2000, up 26 percent from $68.5 million a year ago. Sales growth during the quarter reflected strong demand from customers in the telecommunications, electronics, and transportation sectors, as well as penetration into new markets for the company’s products. The HysonTM and Kaller® nitrogen gas spring product lines, which Barnes Group acquired in August, 1999, contributed $12.7 million in sales this quarter.
Operating profit at Associated Spring increased by 38 percent to $12.5 million in the second quarter of 2000, from $9.1 million for the same period a year ago, largely as a result of the higher sales volume. Associated Spring’s orders were solid in the second quarter of 2000, with total backlog at $58 million as of June 30, 2000.
Barnes Aerospace reported second quarter 2000 sales of $30.4 million, compared with $31.7 million for the same period in 1999. Operating income was $1.9 million for the second quarter of this year, compared with $2.1 million a year ago, as expense control efforts helped to offset the impact of the lower sales volume. “Sales at Barnes Aerospace continue to reflect the current conditions in the commercial jet engine market. However, order trends were very encouraging for a second straight quarter, and we are becoming more optimistic that a recovery is beginning in the market,” Carpenter said.
Orders at Barnes Aerospace during the second quarter of 2000 were $35 million, up 75 percent from average quarterly orders of $20 million in 1999. As a result, backlog rose to $90 million at June 30, 2000, compared with $80 million at December 31, 1999.
Second quarter 2000 sales at Barnes Distribution were $75.4 million, up 28 percent from $59.0 million in the same period in 1999. Curtis Industries, which Barnes Group acquired in May, 2000, contributed $14.8 million in sales this quarter. Operating profit for the second quarter fell to $2.3 million from $2.7 million a year ago, reflecting the continued higher cost levels associated with the implementation of an enterprise wide business system in North America.
“As the benefits of the enterprise system are fully realized, and as we begin to see the synergy savings created from our acquisition of Curtis, operating profitability at Barnes Distribution should gradually improve over the balance of this year,” Carpenter said.
For the first six months of 2000, Barnes Group Inc.’s net income was $18.5 million, up 2 percent from $18.1 million for the same period a year ago. Diluted earnings per share were $0.99 for the six months ended June 30, 2000, an increase of 9 percent from $0.91 per diluted share in the same period of 1999. Net sales for the first six months of 2000 were $361.5 million, up 13 percent from net sales of $318.5 million last year.
“With the completion of our second major acquisition in less than nine months, we are executing on our objective of building long-term value at Barnes Group. Based on what we see in our businesses right now, we believe that over the balance of this year we will deliver significant year-over-year growth in both sales and earnings per share,” 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, Barnes Group consists of three businesses with 1999 sales of $622 million. Barnes Group employs approximately 4,700 people at more than 50 locations worldwide.
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: changes in market demand for the types of products and services produced and sold by Barnes Group, changes in worldwide economic and political conditions, interest and foreign exchange rate fluctuations, and regulatory changes.