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
Investor Relations
(860) 973-2126
Stephen J. McKelvey
Corporate Communications
(860) 973-2132
