8/6/2012 1:34:00 PM
HEADLINES
STOCKS: Barnes Group Achieves Organic Growth
Barnes Group reported revenue, including fasteners, decreased 2% to $293.4 million. Organic sales rose 1% in the quarter, offset by a 3% negative impact from foreign exchange. Income from continuing operations for the second quarter grew 9% to $24.8 million.
Q2 orders increased 17% to a record backlog of $642 million.
Overall revenue during the first six months of 2012 gained 1.5% to $596.5 million, with operating income up 4.1% to $67.1 million.
Aerospace
Aerospace sales declined 1% to $93.8 million during Q2. “A slight increase in Aerospace original equipment manufacturing sales and continued strong levels of aftermarket repair and overhaul sales were more than offset by a sales decline in aftermarket spare parts.”
Operating profit decreased 0.6% to $14.7 million in the second quarter, driven by the profit impact of lower sales volumes and a shift in mix. Operating margin improved slightly to 15.7%.
Six-month aerospace revenue increased 3.1% to $191 million, with operating profit improving 1.6% to $28.9 million.
Industrial
Industrial net sales dipped 3.3% to $110.2 million in Q2, which included organic growth of 2%, offset by the unfavorable foreign exchange impact of $6.5 million.
Operating profit increased 2% to $11.2 million in the second quarter, “as a result of the profit impact from higher organic sales at some of the Industrial businesses and lower incentive compensation costs, partially offset by increased pension costs.” Operating margins improved 60 basis points to 10.2%.
Six-month Industrial segment sales edged up 0.1% to $225.6 million, while operating profit slid 2.8% to $21.3 million.
Distribution
Distribution net sales rose slightly to $91.9 million in Q2. Organic sales improved by $1 million, while foreign exchange negatively impacted sales by $900,000.
Operating profit climbed 3% to $8.2 million. Operating margins improved 20 basis points to 8.9% “due to lower incentive compensation expense and higher productivity, partially offset by higher pension costs.”
Six-month Distribution sales gained 2% to $185.3 million, while operating profit jumped 20% to $16.9 million.
Acquisition
On July 16, 2012 Barnes agreed to acquire privately-held Synventive Molding Solutions, which designs and manufactures highly engineered solutions, components, and services for complex injection molding applications, for $335 million cash.
Synventive is one of the world’s largest hot runner systems manufacturers, serving a global customer base of more than 3,000 molders, mold makers and original equipment manufacturers in 50 countries. With estimated 2012 revenues of approximately $160 million, Synventive operates three manufacturing locations in the U.S., Germany and China, with sales and service offices in 28 countries and 770 employees worldwide.
Synventive will operate as a business unit within Barnes Group’s Industrial Segment. ©2012 GlobalFastenerNews.com
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