Barnes Group Inc.
123 Main Street
Bristol, CT 06010
BARNES GROUP INC. REPORTS
THIRD QUARTER 2020 FINANCIAL RESULTS
Sales of $269 million, down 28% from last year; Organic Sales down 26%
Operating Income of $31.2 million, down 54%
Operating Margin of 11.6%, down 650 bps
GAAP EPS of $0.30, down 66% from a Year Ago
Solid Free Cash Flow, Leverage at 2.8x EBITDA
Provides Fourth Quarter Expectation
BRISTOL, Conn., October 23, 2020 - Barnes Group Inc. (NYSE: B), a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, today reported financial results for the third quarter 2020.
“Barnes Group delivered third quarter financial performance near the high-end of our July expectations with Industrial seeing promising signs of recovery in select end markets and Aerospace effectively managing through the significant pressures of a challenging business environment. As anticipated, the ongoing impacts of the global COVID-19 pandemic weighed on our business, although our sequential improvement and continued solid cash generation are encouraging,” said Patrick J. Dempsey, President and Chief Executive Officer of Barnes Group Inc. “Swift proactive actions taken early in the pandemic have enabled Barnes Group to remain profitable and to sustain good cash performance, both clearly evident in the third quarter results,” added Dempsey.
Third Quarter Highlights
Third quarter 2020 net sales of $269 million were down 28% from $373 million in the prior year period, with organic sales (1) declining 26% primarily driven by the impact of the global pandemic on the Company’s end markets. Divested Seeger sales had a negative impact of 4%, while foreign exchange had a positive impact of 2%. On a sequential basis, net sales increased 14% from the second quarter 2020. Operating income was $31.2 million versus $67.6 million a year ago. Operating margin decreased 650 bps to 11.6%. On an adjusted basis, which excludes $0.3 million of restructuring charges in the Aerospace Segment, operating income was $31.5 million and adjusted operating margin was 11.7%.
Interest expense was $3.7 million, a decrease of $1.6 million from the prior year period, due to decreased average borrowings and the benefit of a lower average interest rate.
Other expense was $47 thousand compared to $2.5 million a year ago, primarily as a result of a foreign currency gains this year versus losses last year.