Barnes Group Earnings Per Share Up 20 Percent; Sales Set New Record.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)--July 17, 2000 -Barnes Group Inc. (NYSE NYSE See: New York Stock Exchange :B) today announced that 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 $0.49 for the second quarter of 2000, an increase of 20 percent from $0.41 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 for the second quarter of 1999. Net income for the quarter ended June June: see month. 30, 2000 was $9.1 million, up 11 percent from $8.2 million for the same period a year ago. 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 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 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. "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 Communicating information, including data, text, pictures, voice and video over long distance. See communications. , electronics, and transportation sectors, as well as penetration into new markets for the company's products. The Hyson hy·son n. A type of Chinese green tea with twisted leaves. [Chinese (Mandarin) x  ch (TM) and Kaller(R) nitrogen gas spring product lines, which Barnes
Group acquired in August, 1999, contributed $12.7 million in sales this
quarter.
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. 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 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. 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 Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. 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 op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op 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 December: see month. 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 North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . "As the benefits of the enterprise system are fully realized, and as we begin to see the synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. 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 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 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 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, 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 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 Six months ended
June 30 June 30
2000 1999 2000 1999
Net sales $ 188,465 $ 156,283 $ 361,472 $ 318,531
Cost of sales 122,847 107,280 239,165 216,820
Selling and
admin. expenses 49,418 36,470 90,388 74,353
---------- ---------- ---------- ----------
172,265 143,750 329,553 291,173
Operating income 16,200 12,533 31,919 27,358
Other income 1,100 1,406 2,496 3,824
Interest expense 3,464 901 6,242 1,913
Other expenses 1,022 276 1,736 688
Income before
income taxes 12,814 12,762 26,437 28,581
Income taxes 3,708 4,579 7,931 10,432
Net income $ 9,106 $ 8,183 $ 18,506 $ 18,149
Per common share:
Net income
- basic $ .49 $ .42 $ 1.00 $ .92
- diluted .49 .41 .99 .91
Dividends .20 .19 .39 .37
Average common
shares
outstanding
- basic 18,454,001 19,576,567 18,526,290 19,669,347
- diluted 18,640,858 19,840,504 18,701,533 19,905,445
BARNES GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Unaudited
June June
2000 1999
Assets
Current assets
Cash and short-term investments $ 42,602 $ 35,109
Accounts receivable 114,632 91,103
Inventories 84,109 60,916
Deferred income taxes and
prepaid expenses 17,823 18,622
-------- --------
Total current assets 259,166 205,750
Deferred income taxes 23,345 24,807
Property, plant and equipment 149,514 135,074
Goodwill 133,818 17,950
Other assets 47,927 29,593
-------- --------
$613,770 $413,174
Liabilities and Stockholders' Equity
Current liabilities
Notes payable $ 35,461 $ 10,891
Accounts payable 59,030 42,645
Accrued liabilities 50,658 39,860
Guaranteed ESOP obligation
- current -- 750
-------- --------
Total current liabilities 145,149 94,146
Long-term debt 200,000 51,000
Other liabilities 80,842 77,929
Stockholders' equity 187,779 190,099
-------- --------
$613,770 $413,174
For additional information on Barnes Group, please call our Fax-On-Demand Service at (800) 311-4606. |
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