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|Barnes Group Inc. Announces New Aerospace Aftermarket Program|
Bristol, Connecticut, October 3, 2005---Barnes Aerospace, a business unit of Barnes Group Inc., (NYSE: B), today announced that it has entered into a new aftermarket Revenue Sharing Program (RSP) agreement with General Electric (NYSE: GE). Barnes Aerospace's RSPs provide the exclusive right to supply designated aftermarket parts for the life of the related engine program. With this new agreement, Barnes Aerospace has now entered into RSP agreements for two engine families - CFM56 and CF6 - representing engines for both narrow-body and wide-body aircraft.
To date, Barnes Aerospace's RSP agreements have focused on the CFM56 engine family, one of the most successful ever to enter service. The CFM56 powers short-, medium- and long-range aircraft. Twelve different aircraft models are powered by the CFM56 including the Boeing 737 and the Airbus A320 families of aircraft. The CFM56 design uses a number of common parts within its engine family. Barnes Aerospace is supplying approximately 50 types of spare parts under its CFM56 aftermarket RSP agreements.
The new RSP agreement is for the GE CF6 engine family. The GE CF6 diversifies Barnes Aerospace's aftermarket portfolio by serving different end markets than those of the CFM56. The CF6 family of high-bypass turbofan engines is the most popular large group of aircraft turbofan engines in the world, powering wide-bodies produced by Boeing and Airbus. The CF6 is currently certified on 11 wide-body aircraft models including the Boeing 747 and 767 and Airbus A300, A310 and A330 aircraft series. Barnes Aerospace is supplying approximately 30 types of spare parts under its CF6 aftermarket RSP agreement.
"Barnes Aerospace continues to leverage its aftermarket scale and scope by entering into RSP agreements for engine programs that have leading market positions, a global sales and service network, and commonality of parts, and are attractive to customers for ease of maintenance and demonstrated superior performance. In addition, each of our RSP agreements supports a homogenous product family thereby maximizing our capabilities in Singapore," said Patrick Dempsey, President, Barnes Aerospace.
Dempsey added, "Barnes Aerospace continues to forge strong partnerships with leading OEM manufacturers and is recognized as an industry leading aerospace supplier with critical core competencies such as concurrent and repair development engineering, precision machining, and fabrication of exotic alloys. Our aftermarket partnerships along with our strong OEM operations provide a business portfolio with diverse markets and customers for continued long-term growth."
"Barnes Group continues to deploy cash to high growth opportunities such as aftermarket RSP agreements which provide strong and immediate returns on investment. Furthermore, aftermarket RSPs provide significant long-term contributions to our objective of balanced and sustainable profitable growth with strong customer partners," said Edmund Carpenter, President and Chief Executive Officer.
Barnes Aerospace provides jet engine component overhaul and repair services for many of the world's major commercial airlines and military applications. Barnes Aerospace also produces precision machined and fabricated components and assemblies for OEM turbine, airframe and industrial gas turbine builders throughout the world.
Barnes Group Inc. (www.barnesgroupinc.com) is a diversified international manufacturer of precision metal components and assemblies and a 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 2004 sales of $994.7 million: Barnes Distribution, an international, full-service distributor of maintenance, repair, operating, and production supplies; Associated Spring, one of the world's largest manufacturers of precision mechanical and nitrogen gas springs and a global supplier of retaining rings, reed valves, shock discs, and injection-molded plastic components; and Barnes Aerospace, a manufacturer and repairer of highly engineered assemblies and components for commercial and military aircraft engines, airframes, and land-based industrial gas turbines.
This release may contain certain forward-looking statements as defined in the Private Securities Litigation 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 ability of the Company to integrate newly acquired businesses and to realize acquisition synergies on schedule; changes in market demand for the types of products and services produced and sold by the Company; 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; the effectiveness of the Company's marketing and sales programs; uninsured claims; increased competitive activities that could adversely affect customer demand for the Company's products; the availability of raw materials at prices that allow the Company to make and sell competitive products; changes in economic, political and public health conditions worldwide and in the locations where the Company does business; interest and foreign exchange rate fluctuations; regulatory changes; the possibility of declines in the stock market; risks related to consolidation occurring in the Company's industries; risks related to dependence on government spending for defense-related products; the possibility of a downturn in the automotive industry; risks related to loss or delay in purchases by customers; risks related to pricing leverage of original equipment manufacturers; risks related to not realizing all sales expected from backlog or anticipated orders; the possibility of not recovering all up-front costs related to original equipment manufacturing programs and revenue sharing programs; risks related to cost overruns and losses on fixed-price contracts; and the possibilities of loss of key personnel, a shortage of skilled employees and labor problems. The Company assumes no obligation to update any forward-looking statements contained in this release.
Brian D. Koppy
Stephen J. McKelvey