Sales of $377 million, up 3% from last year; Organic Sales up 1%
Operating Margin of 13.4%; Adjusted Operating Margin of 14.5%, down 90 bps
GAAP EPS of $0.65; Adjusted EPS of $0.71, down 1% versus prior year period
2019 Sales Growth Expectation Remains at 4% to 6% with Organic Sales Growth of 1% to 3%
2019 Adjusted Net Income Estimate Lowered to $3.23 to $3.35 per Share; Approximately Flat to Up 4% from 2018 Adjusted Net Income of $3.22 per Share
BRISTOL, Conn., April 26, 2019 - Barnes Group Inc. (NYSE: B), a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, today reported financial results for the first quarter of 2019.
“For the first quarter, Barnes Group delivered financial performance in-line with our overall expectations. Excellent performance in our Aerospace business helped to substantially overcome continued pressure in select end markets within our Industrial business,” said Patrick J. Dempsey, President and Chief Executive Officer of Barnes Group Inc. “At Aerospace, record revenues and operating profit, coupled with a healthy backlog, position us favorably for the remainder of the year. At Industrial, we foresee a slow growth environment with declining auto production, delayed auto program launches, and lingering trade and tariff concerns. We continue to closely monitor current market conditions and will adapt as needed to deliver on our commitments,” added Dempsey.
First Quarter 2019 Highlights
Net sales of $377 million in the first quarter were up 3% from $367 million in the prior year period driven by acquisition sales of 5% and organic sales growth (1) of 1%. Foreign exchange negatively impacted sales by 3%. Operating income was $50.6 million, down 11% from $56.6 million in the first quarter of 2018. Excluding Gimatic short term purchase accounting adjustments of $4.0 million, adjusted operating income was $54.6 million, down 4% from a year ago. Adjusted operating margin declined 90 bps to 14.5%.
Interest expense increased $1.2 million, or 31%, to $5.1 million as a result of higher average borrowings due to the Gimatic acquisition, partially offset by a lower average interest rate.
The Company’s effective tax rate was 22.3% for the first quarter of 2019 compared with 23.9% for the prior year period primarily due to international tax holidays awarded in late 2018 offset slightly by the absence of adjustments to certain international valuation reserves.
The following information was filed by Barnes Group Inc (B) on Friday, April 26, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Form Type: 10-Q Quarterly Report Accession Number: 0000009984-19-000052 Submitted to the SEC: Fri Apr 26 2019 11:02:48 AM EST Accepted by the SEC: Fri Apr 26 2019 Period: Sunday, March 31, 2019 Industry: Miscellaneous Fabricated Metal Products