Barnes Group reports strong first quarter earnings, but below last year's all-time record quarter.BRISTOL, Conn.--(BUSINESS WIRE)--April 11, 1996--Barnes Group Inc. today reported earnings per share of $1.01 for the first quarter of 1996 -- a strong performance, although below last year's record of $1.29, which was by far the best of any quarter in the company's history. Theodore E. Martin, president and chief executive officer, said that first quarter earnings were much higher than the company's historical average for this period. In fact, it was Barnes Group's second best first quarter ever in terms of earnings, and would have been 12 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. higher, but for a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge of $1.3 million primarily related to a workforce reduction at Bowman Distribution. "We expect the actions taken at Bowman to have a positive impact on its operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in subsequent quarters," Martin said. Net income for the first quarter was $6.6 million, down 20 percent from $8.3 million in 1995. Sales for the quarter were $150 million, off five percent from last year's record of $159 million. Martin said that Barnes Group's first quarter results compared very favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with the best quarterly results ever, save the extraordinary first quarter in 1995. "Compared to virtually any other quarter, our businesses performed well," he said, "despite a softer durable goods durable goods Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables. market, particularly the domestic automotive sector, which was affected by the recent General Motors strike." Associated Spring sales for the quarter were four percent lower than last year's record total and 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 lower as well, Martin noted. "Results for most of Associated Spring's U.S. manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. were down from 1995's strong levels, but significant gains were made in Singapore and Mexico," he said. Operating income at Associated Spring's distribution business showed good year-over-year increases, particularly for its precision stock springs in the United Kingdom. Sales for Bowman in the first quarter were down 10 percent from a year ago, and operating income was also lower than last year's strong performance. Martin said that Bowman's lower results were due primarily to lower volume in its U.S. business and the effect of the workforce reduction. He noted, however, that good sales gains were made at Bowman-Canada, and that the group's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. business continued to show improvement. At Barnes Aerospace, sales were up two percent for the quarter over last year, but operating income declined. Good sales gains were turned in by the group's precision machining business and by its engine overhaul and repair unit in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . However, profits were adversely affected by start-up Start-up The earliest stage of a new business venture. costs at a new overhaul facility in Singapore and by higher than anticipated manufacturing costs in its Advanced Fabrications business. "We still expect 1996 to be another record year for the company, with earnings per share exceeding the $4.20 achieved in 1995," Martin said. "At Associated Spring, with a strengthening of the U.S. durable goods market, we expect improving sales and profits. We also anticipate the group resolving its contract issues with the UAW (spelling) UAW - Misspelling of "IAW"? . At Bowman, we continue to look for sales and profit improvement in its U.S. business, particularly in the second half, and we see further gains in Europe. Our Barnes Aerospace group is aggressively addressing its manufacturing cost issues, which should produce a positive impact on profits this year. Overall, assuming no significant slowdowns in our major markets, we expect to continue our momentum," Martin said. Barnes Group (NYSE NYSE See: New York Stock Exchange : B) is a $600-million diversified diversified (di·verˑ·s international company based in Bristol, Conn. It is a leader in manufacturing precision springs and complex metal parts for automotive, aerospace and industrial markets, and a major distributor of repair and replacement products to the maintenance, repair and operating supplies market. -0-
BARNES GROUP INC.
Consolidated Statements of Income
(Dollars in Thousands)
Unaudited
Three Months
Ended March 31,
1996 1995
Net sales $150,091 $158,618
Cost of sales 97,173 100,891
Selling and administrative
expenses 41,664 43,180
----- -----
138,837 144,071
Operating income 11,254 14,547 Other income 950 1,208 Interest expense 1,288 1,428 Other expenses 381 448 Income before income taxes 10,535 13,879 Income taxes 3,898 5,539 Net income $6,637 $8,340 Per common share: Net income $1.01 $1.29 Dividends $0.45 $0.40 Average common shares outstanding 6,582,635 6,463,146 -0- The Barnes Group's Fax-on-Demand number is 800-311-4606. CONTACT: Barnes Group Inc. D.P. Hamilton Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. or J.F. Sand Jr., 203/583-7070 |
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