Barnes Group Inc. Reports Second Quarter 2009 Financial Results.* Revenues of $255.2 million for the second quarter 2009 * Second quarter 2009 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. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.19 * First half 2009 cash from operations improved 19% from the prior year period BRISTOL, Conn. -- Barnes Group Inc. (NYSE NYSE See: New York Stock Exchange : B), a diversified diversified (di·verˑ·s global manufacturer and logistical lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation services company, today reported financial results for the second quarter 2009. The Company reported income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $10.4 million, or $0.19 per diluted share, compared to $35.3 million, or $0.61 per diluted share in the prior year period. Barnes Group's second quarter 2009 sales totaled $255.2 million, down 33 percent from $378.9 million in the second quarter of 2008. Barnes Group's first half 2009 cash from operations of $47.9 million improved 19% over the prior year period level of $40.2 million. [TABLE OMITTED] "The continued economic weakness throughout the second quarter had a substantial impact on our businesses, particularly our transportation and industrial manufacturing businesses," said Gregory F. Milzcik, President and Chief Executive Officer, Barnes Group Inc. "As we have done since the beginning of the economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , we continue to focus on managing our business prudently by adjusting our cost structure, driving increased productivity in our core processes, and maximizing cash flow generation. While we have been adjusting to the economic realities we have also been investing in our processes and strategies to generate momentum and opportunities to succeed for the eventual improvement in customer demand for our products and services. We remain confident that the strategic and proactive cost measures we have taken, combined with the Barnes Enterprise System principles, position us for 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. growth. "In addition, we continue to make progress in strengthening our balance sheet through debt reductions driven by working capital improvements. Our focus on working capital management led to the generation of cash from operating activities in the first half of 2009 of $47.9 million. Our ability to generate cash, control and reduce costs, and streamline operations has proven invaluable as we navigate (1) "Surfing the Web." To move from page to page on the Web. (2) To move through the menu structure in a software application. today's economy while positioning our company to maximize its potential when the economy improves." Milzcik added. Logistics and Manufacturing Services * Second quarter 2009 sales at Logistics and Manufacturing Services were $136.6 million, down 27 percent from $186.4 million in the same period last year. The decline in sales was driven by declines across all end markets and throughout 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. and Europe. Foreign exchange negatively impacted sales by $6.3 million in the second 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. was $12.5 million, compared with $24.6 million in the second quarter of 2008. Operating profit was driven lower primarily by the reduced sales volumes in each of the businesses as a result of the current macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. conditions on our end-markets. Profitability pressures were partially offset by the positive impact of operational and productivity actions implemented in 2008 and through the first half of 2009. Precision Components * Second quarter 2009 sales at Precision Components were $120.3 million, down 39 percent from $195.7 million in the same period last year. The world-wide industrial manufacturing businesses reported significant sales declines primarily resulting from the overall global recession and were severely impacted by its effect on the transportation industry. The aerospace original equipment manufacturing business experienced year-over-year sales declines due to reductions in customer inventory and production levels primarily due to lower activity for the GE90 engine related to the Boeing 777 aircraft. Foreign exchange adversely affected sales by $4.0 million in the second quarter. * Operating profit for the second quarter of 2009 was $1.7 million, compared with $26.4 million in the second quarter of 2008. The profit impact of lower sales volumes was partially offset by the benefits of cost reduction actions, including personnel reductions and plant consolidations, taken in 2008 and through the first half of 2009. Additional Information * Other Income, net of other expenses, increased $2.0 million in the second quarter of 2009 compared to the same period of 2008 primarily as a result of a $2.3 million gain on the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of certain convertible notes. * The Company's effective tax rate from continuing operations for the first half of 2009 was 8.9 percent, as compared to the first quarter 2009 rate of 18.7 percent. The decrease in the effective tax rate resulted in a benefit of $0.5 million for the second quarter of 2009. Changes in the Company's tax rate are largely based on the projected mix of income between taxing jurisdictions. Conference Call The Company will conduct a conference call with investors to discuss second quarter 2009 results at 8:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today, August 3, 2009. A webcast of the live call and an archived replay will be available on the Barnes Group investor relations Investor relations The process by which the corporation communicates with its investors. link at www.BGInc.com. Barnes Group Inc. (NYSE:B) is a diversified global manufacturer and logistical services company focused on providing precision component manufacturing and operating service support. Founded in 1857, 5,000 dedicated employees at more than 60 locations worldwide are committed to achieving consistent and sustainable profitable growth. For more information, visit www.BGInc.com. Barnes Group, the Critical Components People. 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 Private 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. Forward-looking statements are made based upon management's good faith expectations and beliefs concerning future developments and their potential effect upon the Company and can be identified by the use of words such as "anticipated," "believe," "expect," "plans," "strategy," "estimate," "project," and other words of similar meaning in connection with a discussion of future operating or financial performance. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. The risks and uncertainties, which are described in our periodic filings with the Securities and Exchange Commission, include, among others, uncertainties arising from the behavior of financial markets; future financial performance of the industries or customers that we serve; changes in market demand for our products and services; integration of acquired businesses; changes in raw material prices and availability; our dependence upon revenues and earnings from a small number of significant customers; uninsured claims; and numerous other matters of global, regional or national scale, including those of a political, economic, business, competitive, regulatory and public health nature. The Company assumes no obligation to update our forward-looking statements. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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