10/31/2012 8:41:00 AM
NEWS BRIEFS
Barnes Group Industrial Revenue Rises
Barnes Group reported revenue, including fasteners, increased 2% to $306.1 million in the third quarter of 2012. Sales growth included a 5% benefit from the Synventive acquisition, offset by a 1% decrease in organic sales and 2% from unfavorable foreign exchange.
Q3 income from continuing operations dropped 17% to $20.7 million, while net income declined 20.5% to $18.5 million.
Aerospace
Aerospace net sales of $98.4 million were up slightly from last year’s third quarter. An increase in aerospace original equipment manufacturing sales was mostly offset by a decline in aftermarket spare parts sales. Aftermarket repair and overhaul sales were essentially flat compared to a year ago.
Operating profit decreased 5% to $15.3 million, primarily driven by volume mix. The profit impact from lower aftermarket spare parts sales was only partially offset by the profit impact from higher original equipment manufacturing sales. Operating margin declined from 16.4% last year to 15.6% this year.
Industrial
Industrial net sales grew 10% to $123.8 million. The Synventive acquisition provided $15.8 million of sales, while organic sales were relatively flat and unfavorable foreign exchange reduced sales by $4.8 million.
Operating profit was $7.4 million, a decrease of $2.9 million from the third quarter of 2011. The primary driver of the lower operating profit was the impact of $5.1 million of short-term purchase accounting and transaction costs related to the acquisition of Synventive. Reported operating margin was 6%.
Distribution
Distribution net sales declined 5% to $85.7 million due to softness in the company’s North American markets.
Operating profit of $6.9 million decreased 11% primarily due to the profit impact on lower sales volumes. Operating margins decreased 50 basis points to 8.1%.
“During the quarter, we closed on the Synventive deal, the largest acquisition in Barnes Group’s history and we’re pleased with the initial operating performance delivered by this business. We believe that a growing Synventive, coupled with another record level of aerospace backlog, provides us with positive momentum,” stated CEO Gregory Milzcik.
Nine-month revenue gained 1.9% to $886.1 million, with operating income slipping 1.9% to $98.7 million and net income growing 1.3% to $64.6 million. ©2012 GlobalFastenerNews.com
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