Sales of $372 million, down 1% from last year; Organic Sales down 4%
Operating Margin of 15.3%; Adjusted Operating Margin of 15.7%, down 130 bps
GAAP EPS of $0.73; Adjusted EPS of $0.75, down 17% versus prior year period
2019 Sales Growth Expectation of 3% to 4% with Organic Sales Approximately Flat to +1%
2019 Adjusted Net Income Estimate of $3.18 to $3.28 per Share; Down 1% to Up 2% from 2018 Adjusted Net Income of $3.22 per Share
BRISTOL, Conn., July 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 second quarter of 2019.
“Ongoing trade uncertainties and challenging end markets have persisted into the second quarter leading to the deferral of customer new program launches in a number of our higher margin Industrial businesses. Helping to offset these headwinds has been sustained strong performance in Aerospace, where we delivered another record level of quarterly revenue and operating profit,” said Patrick J. Dempsey, President and Chief Executive Officer of Barnes Group Inc. “We continue to adjust our operations as necessary to align with current market conditions and, given our strong free cash flow, will maintain organic and acquisitive investment to position the business for recovery in our strategic end markets,” added Dempsey.
Second Quarter 2019 Highlights
Net sales of $372 million in the second quarter were down 1% from $375 million in the prior year period, with organic sales declining (1) 4%. Acquisition sales contributed 5%, while foreign exchange negatively impacted sales by 2%. Operating income was $57.0 million, down 11% from $63.9 million in the second quarter of 2018. Excluding Gimatic short term purchase accounting adjustments of $1.4 million, adjusted operating income was $58.3 million, down 9% from a year ago. Adjusted operating margin declined 130 bps to 15.7%.
Interest expense increased $1.3 million, or 31%, to $5.4 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 24.5% for the second quarter of 2019 compared with 15.9% for the prior year period. The tax rate increase is primarily due to the absence of an $0.08 per share tax benefit from the reversal of certain international valuation allowances and a $0.03 per share tax benefit of U.S.
The following information was filed by Barnes Group Inc (B) on Friday, July 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: 0000009984-19-000076 Submitted to the SEC: Fri Jul 26 2019 8:23:53 AM EST Accepted by the SEC: Fri Jul 26 2019 Period: Sunday, June 30, 2019 Industry: Miscellaneous Fabricated Metal Products