Kar Boosts Barnes Group Profit

Jason Sandefur

Nearly $28 million in revenue from Kar Products pushed sales at Barnes Distribution up 46% to $98.3 million for the fourth quarter of 2003. Parent company Barnes Group acquired Kar in February 2003. Barnes Distribution generated a Q4 operating profit of $1 million, compared with a $300,000 loss during the fourth quarter of 2002.

“During the fourth quarter, we accelerated the consolidation of Kar Products into a new Barnes Distribution network, and as of today have essentially completed our original consolidation plan in the U.S., leaving most of the integration effort behind us,” CEO Edmund Carpenter stated.
Operating profit gains were driven primarily by contributions and synergistic savings from Kar. The results were partially offset by $1.3 million in expenses directly associated with the Kar integration.

For the year, sales at Barnes Distribution jumped 40% to $400.7 million. Kar contributed $108.3 million to yearly sales. 2003 operating profit for the segment more than doubled to $16.5 million.
Overall Barnes Group sales during Q4 rose 20% to $220.3 million, while net income improved 45% to $7 million. Net sales for 2003 climbed 14% to $891 million, producing a 22% increase in net income to $33 million. Web: barnesgroupinc.com �2004 FastenerNews.com