Barnes Group Announces Improved Full-Year 2000 Results.Business Editors BRISTOL Bristol, cities, United States Bristol. 1 Industrial city (1990 pop. 60,640), Hartford co., central Conn., on the Pequabuck River; settled 1727, inc. 1785. Its clock-making industry dates from 1790. , Conn.--(BUSINESS WIRE)--Feb. 8, 2001 -- Full-year earnings rise to $1.90 per diluted share from $1.46. -- Diluted earnings increase to $0.41 per share in fourth quarter 2000. -- Aerospace orders and backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. grow to record levels. -- Company repurchases nearly 600,000 shares in 2000. Barnes Barnes, former municipal borough, SE England. See Richmond upon Thames. Group Inc. (NYSE NYSE See: New York Stock Exchange :B) today announced an improvement in financial results for the year ended December December: see month. 31, 2000 compared with 1999. For all of 2000, net income was $35.7 million, up 25 percent from $28.6 million for the full year 1999. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $1.90 for the year ended December 31, 2000, an increase of 30 percent from $1.46 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share in 1999. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $740.0 million for the full year in 2000, up 19 percent from net sales of $622.4 million in 1999. Net sales in 2000 were the highest in Barnes Group's history, reflecting the company's recent acquisitions, organic growth, and includes a 27 percent increase in foreign sales, to $186.3 million. "We executed on all of our key objectives in 2000, which were centered on growing our business organically and through acquisitions, restoring profitability, and generating value for our shareholders," said Edmund Edmund, 921–46, king of Wessex (939–46), half brother and successor of Athelstan. Immediately after his accession he had to face an invasion of Irish vikings led by Olaf Guthfrithson. M. Carpenter, Barnes Group Inc.'s president and chief executive officer. "The impact of our investments in sales and marketing and new product development throughout the organization was evident in our top-line growth this past year. And, we are beginning to see the early contributions to our operating profitability from our recent acquisitions at Barnes Aerospace and Barnes Distribution," Carpenter added. Sales at Associated Spring were $327.3 million for all of 2000, up 16 percent from $282.6 million in 1999. Sales growth reflected higher sales of mechanical springs to customers in sectors such as telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , electronics, and medical equipment; strong growth of the company's nitrogen nitrogen (nī`trəjən), gaseous chemical element; symbol N; at. no. 7; at. wt. 14.0067; m.p. −209.86°C;; b.p. −195.8°C;; density 1.25 grams per liter at STP; valence principally −3, +3, or +5. gas spring products; and increased sales to foreign-based customers. Full-year operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. grew 32 percent to $44.1 million in 2000 from $33.5 million in 1999, largely as a result of the increased sales volume. "This past year was a record-setting period for Associated Spring in terms of both sales and operating profit. Successful efforts to expand sales into new sectors and to international customers contributed substantially to Associated Spring's success this past year, and, going forward, should help to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the effects of the
traditional transportation sector cycles," Carpenter commented.
Full-year sales at Barnes Aerospace were $135.1 million in 2000, up 11 percent from the same period in 1999, which reflected both a recovery in demand for engines used in long-range long-range adj. 1. Of, suitable for, or reaching long distances: long-range missiles. 2. Requiring or involving an extended span of time: long-range planning. commercial aircraft and the September September: see month. , 2000 acquisition of Kratz-Wilde Machine Company and Apex Manufacturing, Inc. (Kratz/Apex). Operating profit at Barnes Aerospace increased 52 percent to $8.0 million for the year ended December 31, 2000, compared with $5.3 million in the year-ago period. Operating profit grew largely as a function of the increased sales volume, and also by the more widespread use of lean manufacturing Lean manufacturing is the production of goods using less of everything compared to mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. methods. Orders at Barnes Aerospace for the full year were $171.3 million, up 118 percent from $78.8 million for the full year in 1999. Order backlog rose to a record $144.9 million at December 31, 2000, compared with $79.9 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1999. "Increased customer penetration, investments in sales, marketing and new product development in the U.S. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , and higher
operating efficiency all contributed to an important transitional year
for Barnes Aerospace," Carpenter stated. "With a rising order
trend, significant backlog, and full-year contribution from Kratz/Apex,
we expect that Barnes Aerospace will enjoy strong growth in sales and
operating profit in 2001," Carpenter added.
Sales at Barnes Distribution were $291.1 million for the year ended December 31, 2000, up 26 percent from $230.4 million in the comparable period in 1999. Operating profit for all of 2000 was $12.9 million, an increase of 29 percent compared with $9.9 million for the same period in 1999. Operating profit improved on the higher sales volume, expense reductions from the consolidation of Curtis Industries into Barnes Distribution, and higher expenses in the year-ago period related to the installation of a distribution management system. "Operating profitability at Barnes Distribution continues to improve on a sequential One after the other in some consecutive order such as by name or number. basis, as expected. While we have not yet reached the level of profitability we would consider acceptable, we have been encouraged by the trend of the last two quarters. To reiterate re·it·er·ate tr.v. re·it·er·at·ed, re·it·er·at·ing, re·it·er·ates To say or do again or repeatedly. See Synonyms at repeat. re·it what we stated in our third quarter press release, we continue to expect that operating profitability at Barnes Distribution will increase considerably in 2001 compared to 2000 levels," Carpenter said. Among the other highlights of 2000, Carpenter noted: -- Barnes Group increased its dividend 5.3%, to an annual rate of $0.80 per share. This was the 7th consecutive year in which Barnes Group has increased its dividend, and marked the 66th consecutive year in which the company or its predecessors has paid a dividend. -- Over the course of the year, Barnes Group repurchased over 594,000 shares at an average price of $15.47, returning nearly $9.2 million of capital to stockholders. Fourth Quarter Earnings Rise Sharply Barnes Group Inc.'s diluted earnings per share were $0.41 for the fourth quarter of 2000, compared with $0.08 per diluted share for the fourth quarter of 1999. Net income for the quarter ended December 31, 2000 was $7.8 million, up more than fourfold fourfold Adjective 1. having four times as many or as much 2. composed of four parts Adverb by four times as many or as much Adj. 1. from $1.6 million for the same period a year ago. Net sales for the fourth quarter of 2000 were $188.0 million, up 26 percent from net sales of $149.8 million in 1999. Net sales growth in the fourth quarter reflected Barnes Group's recent acquisitions, increased foreign sales, and a sharp increase in sales at Barnes Aerospace. Foreign sales were $44.8 million during the most recent quarter, compared with $42.2 million in the same year-ago period. Sales at Barnes Aerospace were $40.7 million in the quarter ended December 31, 2000, up 85 percent from $22.0 million in the same period a year ago, reflecting both the successful conversion of orders recorded in early 2000 into sales and the September, 2000 acquisition of Kratz/Apex. Sales from Kratz/Apex totaled approximately $9.7 million in the fourth quarter of 2000. Orders at Barnes Aerospace were a record $54.4 million during the fourth quarter of 2000. Operating profit at Barnes Aerospace increased to $1.8 million for the fourth quarter of 2000, compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2.4 million in the same period a year ago. Operating profit increased largely as a result of the higher sales volume. Fourth quarter 2000 sales at Barnes Distribution were $75.4 million, up 41 percent from $53.6 million in the fourth quarter of 1999. Curtis Industries contributed $20.1 million in sales in the 2000 fourth quarter, or approximately 27 percent of the total sales. Operating profit for the fourth quarter of 2000 was $4.9 million, compared to an operating loss of $1.5 million in the same period a year ago. Operating profit improved on the higher sales volume, improved operating efficiencies, and higher expenses in the year-ago period related to the installation of a distribution management system. Sales at Associated Spring were $74.9 million for the fourth quarter of 2000, down three percent from $76.9 million a year ago. Sales during the quarter were negatively impacted by the industry-wide slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the domestic transportation sector. This was largely offset by higher sales of mechanical springs to customers in other sectors and continued strong growth of the company's nitrogen gas spring products. Operating profit at Associated Spring fell 16 percent to $7.7 million in the fourth quarter of 2000, from $9.1 million for the same period a year ago, reflecting the sales volume decline; this was partially offset by aggressive expense controls implemented during the most recent quarter. Carpenter concluded, "Over the past two years, we have invested significantly to lay the foundation for our future growth. In 2001, we are focused on achieving the synergies of our recent acquisitions, expanding our products to new customers and markets, and, most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , delivering long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. value to our shareholders." Barnes Group Inc. (www.barnesgroupinc.com) is a diversified diversified (di·verˑ·s 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 Bristol is a city located in Hartford County, Connecticut, 20 miles (32 km) southwest of Hartford. According to 2006 Census Bureau estimates, the population of the city is 61,353. , Barnes Group consists of three businesses with 2000 sales of $740 million: Associated Spring, a manufacturer of precision mechanical and nitrogen gas springs; Barnes Aerospace, a manufacturer and repairer of aircraft engine and airframe components and assemblies; and Barnes Distribution, a distributor of maintenance, repair and operating supplies. Nearly 5,700 dedicated employees at more than 50 locations worldwide contribute to Barnes Group Inc.'s success. This release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined in the Public Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes.
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended Twelve months ended
December 31 December 31
2000 1999 2000 1999
Net sales $ 187,991 $ 149,782 $ 740,032 $ 622,356
Cost of sales 125,919 104,460 488,634 424,945
Selling and
admin. expenses 47,978 40,484 188,449 151,304
----------- ----------- ----------- -----------
173,897 144,944 677,083 576,249
Operating income 14,094 4,838 62,949 46,107
Other income 1,423 -- 4,773 4,400
Interest expense 4,890 2,563 15,140 6,093
Other expenses 1,250 861 3,992 1,716
Income before
income taxes 9,377 1,414 48,590 42,698
Income taxes
(benefit) 1,553 (157) 12,925 14,086
Net income $ 7,824 $ 1,571 $ 35,665 $ 28,612
Per common share:
Net income
- basic $ .42 $ .08 $ 1.92 $ 1.47
- diluted .41 .08 1.90 1.46
Dividends .20 .19 .79 .75
Average common
shares
outstanding
- basic 18,618,932 18,993,265 18,568,359 19,417,856
- diluted 18,884,357 19,185,037 18,791,227 19,642,755
BARNES GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Unaudited
December December
2000 1999
Assets
Current assets
Cash and short-term investments $ 23,303 $ 43,632
Accounts receivable 107,434 91,701
Inventories 88,514 66,351
Deferred income taxes and
prepaid expenses 22,097 17,501
Total current assets 241,348 219,185
Deferred income taxes 15,010 23,797
Property, plant and equipment 163,766 145,105
Goodwill 155,667 88,562
Other assets 61,150 39,633
-------- --------
$636,941 $516,282
Liabilities and Stockholders' Equity
Current liabilities
Notes payable $ 6,896 $ 12,136
Accounts payable 59,767 57,458
Accrued liabilities 60,183 46,426
Total current liabilities 126,846 116,020
Long-term debt 230,000 140,000
Other liabilities 78,762 79,648
Stockholders' equity 201,333 180,614
-------- --------
$636,941 $516,282
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