Barnes Group Inc. celebrates net sales increase in 2016

Published on Monday, 20 February 2017 21:17
Written by The Barnes Group Inc.

 

BRISTOL - Barnes Group Inc. , a city-based global industrial and aerospace manufacturer and service provider, last week reported financial results for the fourth quarter and full year 2016.

Fourth quarter 2016 net sales of $324 million were up 13 percent from $287 million in the prior year period driven by organic sales growth of 9 percent and acquisition sales of 5 percent. Foreign exchange unfavorably impacted sales by 1 percent. Net income for the fourth quarter was $36.7 million, or $0.67 per diluted share, compared to $24.4 million, or $0.44 per diluted share, a year ago.

For the full year, Barnes Group generated net sales of $1,231 million, up 3 percent from $1,194 million last year. Full year organic sales were flat, while acquisition sales of 4 percent were partially offset by an unfavorable foreign exchange impact of 1 percent. Net income for the year was $135.6 million, or $2.48 per diluted share, compared to $121.4 million, or $2.19 per diluted share, a year ago.

“Barnes Group made great progress in 2016 on our transformational journey to position the company as a leading global provider of engineered products and innovative solutions,” said Patrick J. Dempsey, President and Chief Executive Officer of Barnes Group Inc. “Our three strategic enablers - the Barnes Enterprise System, Innovation, and Talent Management - were instrumental in helping us further strengthen our competitive advantage during the year, and they will empower our long-term growth and success as we move forward.”

Industrial

Fourth quarter 2016 sales were $215.7 million, up 13 percent from $190.2 million in the same period last year. Organic sales increased by 8 percent, primarily driven by continued strength in our Nitrogen Gas Products and Molding Solutions businesses. Unfavorable foreign exchange reduced sales by approximately $3.4 million, or 2 percent, while the Foboha business contributed $14.3 million in acquisition sales.

Full year 2016 sales were $824.2 million, up 5 percent from $782.3 million last year. Organic sales of approximately 1 percent benefited from strong Molding Solutions end markets. Unfavorable foreign exchange impacted sales by $9.6 million or 1 percent, while acquisition revenues were approximately $47.4 million.

Full year operating profit of $129.7 million was up 26 percent from $103 million in the prior year.

Aerospace

Fourth quarter 2016 sales were $108.5 million, up 12 percent from $96.8 million in the same period last year. Aerospace original equipment manufacturing sales increased as a result of higher volumes including $4 million from a contract termination arbitration award. In the aftermarket, maintenance, repair and overhaul sales and spare parts sales were both favorable to a year ago.

Full year 2016 sales were $406.5 million, down 1 percent from $411.7 million last year. Decreased sales from the OEM and spare parts businesses were only partially offset by higher MRO sales.

Operating profit was $62.5 million for 2016 versus $65.4 million a year ago.

Outlook

Barnes Group expects 2017 total revenue growth of 6 to 8 percent with organic revenue growth of 3 to 5 percent after consideration of 1 percent unfavorable foreign exchange and a positive 4 percent from acquisition revenues. Operating margins are forecasted to be in the range of 16- to 17 percent. Adjusted earnings from continuing operations are expected to be in the range of $2.61 to $2.76 per diluted share, up 3 to 9 percent from 2016’s adjusted diluted earnings per share of $2.53.

Further, the company anticipates capital expenditures of approximately $55 million and cash conversion to be approximately 100% of net income. For 2017, the effective tax rate is expected to be in the range of 27- to 28 percent.

“Strengthening operating and financial performance over the second half of 2016, coupled with our organic investments in growth programs and recent acquisitions, provide positive momentum heading into 2017,” said Christopher J. Stephens, Jr., Senior Vice President, Finance and Chief Financial Officer, Barnes Group Inc. “We expect to sustain solid cash flow generation and favorable cash conversion. We’ll continue to invest in our businesses and look for further value-enhancing acquisitions, all with a well-positioned and supportive balance sheet.”



Posted in The Bristol Press, Manufacturing on Monday, 20 February 2017 21:17. Updated: Wednesday, 22 February 2017 14:57.