Steel Hikes Force Barnes Group to Trim Workforce

Jason Sandefur

Following the successful integration of Kar Products, Barnes Distribution will trim its workforce by 3% in the first quarter of 2005, Barnes Group CEO Edmund Carpenter announced. Barnes Group recorded a fourth quarter charge of $1.2 million for Kar Products inventory and facilities. “At Distribution, with our customer service back to traditional levels and the Kar Products integration effort now completed, we see the opportunity to improve profitability as we move into 2005,” Carpenter stated.
Carpenter also announced a 5% reduction in sister company Associated Spring’s workforce to counter rising steel costs. Together, the layoffs are expected to generate annual savings of $5.8 million.
Carpenter said automotive OEM customers have refused to accept hikes caused by steel price increases. “Despite our efforts during the second half of 2004 to convince our key automotive OEM customers to share in steel price increases which will cost us over $4 million this year at Associated Spring, we have met with little success,” Carpenter noted. “The planned personnel reductions are necessary to help counter the impact of these higher raw material costs.” Web: barnesgroupinc.com �2004 FastenerNews.com