Barnes Group Reports Growth In Sales, Operating Income

Barnes Group Inc. reported growth in second-quarter sales and operating profits, but earnings were much lower because of gains last year from discontinued operations and the sale of Barnes Distribution North America.

Quarterly net income dropped 86 percent to $30.2 million, or 54 cents per diluted share, compared with $209.3 million, or $3.82 per diluted share, during the same period last year. However, results last year were skewed because they included income from discontinued operations of $200.1 million, which included gains from selling Barnes Distribution North America and net operating results for BDNA.

Operating income was $45.4 million for the quarter, or 54 cents per diluted share, up from $36.1 million, or 17 cents per diluted share, during the same period in 2013. Excluding items, diluted income from continuing operations was 59 cents per share, matching expectations of analysts polled by Thomson Reuters, and up from up from 47 cents in 2013.

Net sales were up 20 percent to $322 million for the quarter compared with $267 million during the same period in 2013. Barnes had a 19 percent increase in the cost of sales and a 21 percent hike in selling and administrative expenses.

Barnes Group Inc. of Bristol is an industrial and aerospace manufacturer. In the Aerospace division, quarterly sales were up 13 percent to $109.3 million from $96.8 million in 2013. The company said sales increases in original equipment and aftermarket repair and overhaul were offset by lower sales in spare parts.

The backlog of Aerospace work was $526 million as of June 30, down 5 percent from March 31.

"Barnes Group delivered strong second quarter performance and our view of 2014 continues to be very positive," Barnes Group CEO Patrick J. Dempsey said in a statement. "Our primary end-markets remain favorable, and the recent acquisitions of Männer and Synventive delivered excellent results.

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