Barnes Group Inc. Reports Fourth Quarter and Full Year 2012 Financial Results

  Barnes Group Inc. Reports Fourth Quarter and Full Year 2012 Financial
  Results

  *Fourth quarter sales of $327 million, up 16%; full year sales up 5% to
    $1,230 million
  *Fourth quarter diluted EPS from Continuing Operations of $0.54, up 26%
  *Full year diluted EPS from Continuing Operations up 9% to $1.78; up 13% to
    $1.86 on an Adjusted Basis
  *Ends 2012 with a record year-end backlog of $677 million
  *2013 EPS from Continuing Operations guidance of $2.03 to $2.18 per diluted
    share

Business Wire

BRISTOL, Conn. -- February 22, 2013

Barnes Group Inc. (NYSE: B), an international aerospace and industrial
manufacturer and service provider, today reported financial results for the
fourth quarter and full year 2012. Fourth quarter 2012 sales totaled $327.4
million, up 16% from $283.3 million in the fourth quarter of 2011, driven
primarily by the sales contribution of the Synventive business. Income from
continuing operations was $29.8 million or $0.54 per diluted share, up 26%
from the fourth quarter of 2011.

For the full year, Barnes Group generated sales of $1,230 million, up 5% from
last year. Income from continuing operations was $98.3 million, or $1.78 per
diluted share, compared to $91.6 million, or $1.64 per diluted share in 2011.
Income from continuing operations in 2012 included $5.9 million pre-tax, or
$0.08 per diluted share, of short-term purchase accounting adjustments and
acquisition transaction costs. Excluding these acquisition related items,
adjusted diluted earnings per share from continuing operations was $1.86 for
2012. A table reconciling these non-GAAP adjusted results to our GAAP results
is included at the end of this press release.

“We delivered record fourth quarter Net Income despite lingering challenges in
some of our global markets,” said Gregory F. Milzcik, President and Chief
Executive Officer of Barnes Group Inc. “We’ve continued to transform our
business by executing on our strategy of differentiated product and processes
resulting in margin expansion. Even as some of our end-markets continued to
reflect top-line softness, we generated improvement in operating margins. In
addition, we completed the largest acquisition in the Company’s history with
Synventive and we end 2012 with a record year-end backlog of $677 million, up
16% from 2011.” Milzcik continued, “We’re optimistic about 2013, with an
expectation of continued growth in sales and profitability and furthering the
substantial progress made in 2012.”


($ millions;
except per     Three months ended December 31,                        Twelve months ended December 31,
share data)
Unaudited        2012         2011          Change                    2012         2011           Change
Net Sales        $327.4        $283.3         $44.1   15.6  %        $1,230.0       $1,169.4        $60.6   5.2   %
Operating        $39.7
Income                          $28.9           $10.9     37.6   %        $136.6         $127.6           $9.0      7.1    %
                 
                 12.1
% of Sales                %     10.2      %               1.9    pts.     11.1     %     10.9       %               0.2    pts.
                 
Income from                                                                                               $6.7
Continuing       $29.8          $23.8           $6.0      25.4   %        $98.3          $91.6                      7.3    %
Operations                                                                                                
Net Income       $29.7          $0.1            $29.7     NM             $95.2          $64.7            $30.5     47.2   %
                                                                                                                           
Income from
Continuing                                                                                                          8.5
Operations       $0.54          $0.43           $0.11     25.6   %        $1.78          $1.64            $0.14            %
Per Diluted                                                                                                         
Share
                                                                                                                           
Loss from
Discontinued
Operations       $0.00          ($0.43)         $0.43                     ($0.06)        ($0.48)          $0.42
Per Diluted
Share
                                                                                                                           
Net Income
Per Diluted      $0.54          $0.00           $0.54     NM             $1.72          $1.16            $0.56     48.3   %
Share


Aerospace

  *Fourth quarter 2012 sales were $101.1 million, up 2% from $99.1 million in
    the same period last year. An increase in aerospace original equipment
    manufacturing (“OEM”) sales was largely offset by declines in aftermarket
    repair and overhaul and spare parts sales.
  *Operating profit of $19.0 million for the fourth quarter of 2012 was up 5%
    compared to the prior year period of $18.1 million. Profit benefited from
    higher OEM sales and lower employee related expenses, primarily reduced
    incentive compensation. Profit was negatively impacted by lower profit
    from aftermarket repair and overhaul and spare parts sales and an
    inventory valuation adjustment within the aftermarket repair and overhaul
    business. Operating margin increased to 18.8%, up 50 bps.
  *Full year 2012 sales were $390.5 million, up 2% from $382.5 million in
    2011. The increase was primarily from sales growth in the OEM and
    aftermarket repair and overhaul businesses, partially offset by a decline
    in aftermarket spare parts sales.
  *Full year 2012 operating profit increased 1% to $63.3 million. Operating
    profit benefited from higher sales in the OEM manufacturing business and
    lower levels of incentive compensation. Operating profit was negatively
    affected by the profit impact of lower sales in the highly profitable
    aftermarket RSP spare parts business and an inventory valuation adjustment
    within the aftermarket repair and overhaul business. Full year operating
    margin decreased to 16.2%, down 20 bps.

Industrial

  *Fourth quarter 2012 sales were $147.6 million, up $45.1 million or 44%
    versus the same period last year. Synventive sales of $44 million
    contributed most of the growth, while organic sales were up 2% and foreign
    exchange was an unfavorable 1%.
  *Operating profit of $15.2 million for the fourth quarter of 2012 increased
    $8.4 million from last year driven by the profit contribution of the
    Synventive business. Operating margin increased to 10.3%, up 370 bps.
  *Full year 2012 sales were $497.0 million, up 13% from $440.5 million in
    2011. Synventive provided $60 million of sales, while organic sales
    increased by $9.9 million. Unfavorable foreign exchange decreased sales by
    approximately $13.4 million for the year.
  *Full year 2012 operating profit was $43.9 million, up 12% from 2011
    primarily benefiting from the profit contribution of the acquired
    Synventive business. Operating profit was partially offset by $5.9 million
    in short-term purchase accounting adjustments and transaction costs
    related to the Synventive acquisition. Excluding the Synventive
    acquisition related items, adjusted operating margin increased to 10.0%,
    up 110 bps.

Distribution

  *Fourth quarter 2012 sales of $79.7 million were down 4% compared to the
    fourth quarter of 2011 as a result of softness in our North American
    markets and a focus on more profitable accounts.
  *Operating profit of $5.6 million increased 41% from last year primarily
    due to pricing actions, customer mix, and lower employee related costs,
    namely incentive compensation. This favorability was partially offset by
    higher pension costs and the negative profit impact from lower sales
    volumes. Operating margin increased to 7.0%, up 230 bps.
  *Full year 2012 sales were $350.7 million, down 1% from 2011. Organic sales
    declined as customers continued to manage costs and inventory levels and
    as the business focused on more profitable accounts. Foreign exchange
    decreased sales by $1.1 million.
  *Full year 2012 operating profit was $29.4 million, up 14% from 2011. The
    profit increase was driven by lower employee related costs, namely
    incentive compensation, customer mix, and lower cost structures, partially
    offset by higher pension costs and the impact of lower sales volumes.
    Operating margin increased to 8.4%, up 110 bps.

Additional Information

  *Interest expense increased $2.0 million from 2011, to $12.2 million, as a
    result of higher borrowings used to fund the acquisition of Synventive.
  *Other expense in 2012 was $2.7 million, up $2.3 million from last year,
    primarily driven by foreign exchange losses.
  *The Company’s effective tax rate from continuing operations was 19.2% in
    2012 compared with 21.7% in 2011. The 2011 effective tax rate included the
    recognition of $1.8 million of discrete tax expense related to tax
    adjustments for earlier years. The 2012 effective tax rate was impacted by
    the absence of this discrete item, a change in the mix of earnings
    attributable to higher-taxing jurisdictions, and the impact of a decrease
    in the repatriation of a portion of current year foreign earnings to the
    U.S. The Company repatriated $8.0 million and $17.5 million in 2012 and
    2011, respectively.

Announced Sale of Barnes Distribution North America

As announced this morning, the Company has entered into a definitive agreement
to sell its Barnes Distribution North America business (“BDNA”) to MSC
Industrial Direct Co., Inc. for $550 million, subject to certain adjustments.
The transaction, which is subject to customary conditions and approvals, is
expected to close in late March or early in the second quarter of 2013. The
BDNA business had 2012 revenues of approximately $300 million.

“We’re very pleased to announce the sale of our BDNA business to MSC
Industrial Direct,” said Gregory F. Milzcik, President and Chief Executive
Officer of Barnes Group Inc. “MSC is gaining an established leader in vendor
managed inventory distribution and Barnes Group is further advancing its
strategy of adjusting the business portfolio to focus on core manufacturing
and aftermarket capabilities.”

Barnes Group expects to use after-tax proceeds of approximately $400 million
to reduce debt, buyback common shares, invest in profitable growth initiatives
including acquisitions, and general corporate purposes.

2013 Outlook

Excluding impacts from this morning’s announced pending sale of BDNA and CEO
transition, Barnes Group expects 2013 revenue to grow 14% to 18% from 2012 and
operating margins of 12% to 13%. Earnings per diluted share are anticipated to
be in the range of $2.03 to $2.18, up 9% to 17% from 2012’s adjusted diluted
earnings per share from continuing operations of $1.86. Further, the Company
expects capital expenditures of approximately $50 million and cash conversion
to be better than or equal to 100% of net income.

“Our achieved 2012 financial performance, coupled with our expectations for
profitable growth in 2013, allows us to further invest in our businesses while
continuing to solidify our balance sheet following the Synventive
acquisition,” said Christopher J. Stephens, Jr., Senior Vice President,
Finance and Chief Financial Officer, Barnes Group Inc. “We believe the Company
is well positioned for organic growth and to take advantage of value enhancing
acquisition opportunities as they arise.”

Barnes Group expects to report BDNA as Discontinued Operations beginning with
the first quarter of 2013. The BDNA business results are currently reported
within the Company’s Distribution segment. The remaining business within the
Distribution segment, Associated Spring Raymond, will be realigned into the
Company’s Industrial Segment. Accordingly, the Company’s financial results,
beginning with the first quarter of 2013, will be reported in two segments;
Aerospace and Industrial.

The Company expects to update its outlook in connection with the closing of
the BDNA transaction.

Conference Call

Barnes Group Inc. will conduct a conference call with investors to discuss
fourth quarter and full year 2012 results at 8:30 a.m. EST today, February 22,
2013. A webcast of the live call and an archived replay will be available on
the Barnes Group investor relations link at www.BGInc.com. The conference is
also available by direct dial at (888) 679-8033 in the U.S. or (617) 213-4846
outside of the U.S. (request the Barnes Group Earnings Call), Participant
Code: 49233865.

In addition, the call will be recorded and available for playback beginning at
12:00 p.m. (EST) on Friday, February 22, 2013 by dialing (617) 801-6888,
Passcode: 42867174.

About Barnes Group

Founded in 1857, Barnes Group Inc. (NYSE: B) is an international aerospace and
industrial manufacturer and service provider, serving a wide range of end
markets and customers. The products and services provided by Barnes Group are
used in far-reaching applications that provide transportation, communication,
manufacturing and technology to the world. Barnes Group’s approximately 5,100
dedicated employees, at more than 70 locations worldwide, are committed to
achieving consistent and sustainable profitable growth. For more information,
visit www.BGInc.com.

Forward-Looking Statements

This release contains forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are made
based upon management's good faith expectations and beliefs concerning future
developments and their potential effect upon the Company and can be identified
by the use of words such as "anticipated," "believe," "expect," "plans,"
"strategy," "estimate," "project," and other words of similar meaning in
connection with a discussion of future operating or financial performance.
These forward-looking statements may relate to, among others, the expected
impact of the Synventive acquisition on the Company’s financial results,
business performance and product offerings; and the impact of the acquisition
on the Company’s fiscal revenue, non-GAAP results and GAAP results. These
forward-looking statements do not constitute guarantees of future performance
and are subject to a variety of risks and uncertainties that may cause actual
results to differ materially from those expressed in the forward-looking
statements. These include, but are not limited to: the impact of the pending
divestiture of the Barnes Distribution North America business to MSC
Industrial Direct Co., Inc.; the effects of disruption from the Synventive
transaction; difficulty maintaining relationships with employees, customers,
distributors, suppliers, business partners or governmental entities; the
success of integration strategy implementation; the ability to recruit and
retain key personnel and execute effective executive transitions; difficulties
leveraging market opportunities; difficulties providing solutions that meet
the needs of customers; rapid technological and market change; the ability to
protect intellectual property rights; higher risks in international operations
and markets; the impact of increased competition; currency fluctuations;
litigation; and other risks and uncertainties which are described more fully
in documents filed with or furnished to the Securities and Exchange Commission
by the Company, including the Management's Discussion and Analysis of
Financial Condition and Results of Operations and Risk Factors sections of the
Company’s filings with the Securities and Exchange Commission. These risks and
uncertainties include, among others, uncertainties arising from the current or
worsening conditions in financial markets; future financial performance of the
industries or customers that we serve; changes in market demand for our
products and services; inability to realize expected sales or profits from
existing backlog; integration of acquired businesses, including Synventive;
restructuring costs or savings; the impact of the divestiture in 2011 of our
Barnes Distribution Europe businesses and any other future strategic actions,
including acquisitions, joint ventures, divestitures, restructurings, or
strategic business realignments, and our ability to achieve the financial and
operational targets set in connection with any such actions; introduction or
development of new products or transfer of work; changes in raw material or
product prices and availability; foreign currency exposure; our dependence
upon revenues and earnings from a small number of significant customers; a
major loss of customers; the outcome of pending and future claims or
litigation or governmental, regulatory proceedings, investigations, inquiries,
and audits; uninsured claims and litigation; outcome of contingencies; future
repurchases of common stock; future levels of indebtedness; and numerous other
matters of global, regional or national scale, including those of a political,
economic, business, competitive, environmental, regulatory and public health
nature. The Company assumes no obligation to update our forward-looking
statements.

                                                                                                                                  
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
                                                                                                     
                     Three months ended December 31,                          Twelve months ended December 31,
                                                               %                                                        %
                      2012               2011              Change         2012               2011              Change 
                                                                                                                                     
Net sales            $ 327,382            $ 283,286            15.6           $ 1,229,959          $ 1,169,355          5.2
                                                                                                                                     
Cost of sales          208,751              188,147            11.0             812,192              772,398            5.2
Selling and
administrative        78,885             66,262            19.1            281,211            269,402           4.4
expenses
                                                                                                                                     
                      287,636            254,409           13.1            1,093,403          1,041,800         5.0
                                                                                                                                     
Operating              39,746               28,877             37.6             136,556              127,555            7.1
income
                                                                                                                                     
Operating              12.1       %         10.2       %                        11.1       %         10.9       %
margin
                                                                                                                                     
Interest               4,192                2,365              77.3             12,238               10,271             19.2
expense
Other expense         873                167               NM              2,671              395               NM
(income), net
                                                                                                                                     
Income from
continuing
operations             34,681               26,345             31.6             121,647              116,889            4.1
before income
taxes
                                                                                                                                     
Income taxes          4,887              2,586             89.0            23,350             25,316            (7.8   )
                                                                                                                                     
Income from
continuing             29,794               23,759             25.4             98,297               91,573             7.3
operations
                                                                                                                                     
Loss from
discontinued
operations,            (63        )         (23,693    )       99.7             (3,048     )         (26,858    )       88.7
net of income
taxes
                                                                                                
Net income           $ 29,731            $ 66                NM             $ 95,249            $ 64,715            47.2
                                                                                                                                     
Common               $ 5,417             $ 5,433             (0.3   )       $ 21,662            $ 18,629            16.3
dividends
                                                                                                                                     
Per common
share:
                                                                                                                                     
Basic:
Income from
continuing           $ 0.54               $ 0.43               25.6           $ 1.80               $ 1.66               8.4
operations
Loss from
discontinued
operations,           -                  (0.43      )       NM              (0.06      )        (0.49      )       87.8
net of income
taxes
Net income           $ 0.54              $ -                 NM             $ 1.74              $ 1.17              48.7
                                                                                                                                     
Diluted:
Income from
continuing           $ 0.54               $ 0.43               25.6           $ 1.78               $ 1.64               8.5
operations
Loss from
discontinued
operations,           -                  (0.43      )       NM              (0.06      )        (0.48      )       87.5
net of income
taxes
Net income           $ 0.54              $ -                 NM             $ 1.72              $ 1.16              48.3
                                                                                                                                     
Dividends              0.10                 0.10               -                0.40                 0.34               17.6
                                                                                                                                     
Weighted average common shares
outstanding:
Basic                  54,649,732           54,888,879         (0.4   )         54,626,453           55,214,586         (1.1   )
Diluted                55,194,226           55,451,632         (0.5   )         55,224,457           55,931,882         (1.3   )
                                                                                                                                     

                                                                                                             
BARNES GROUP INC.
OPERATIONS BY REPORTABLE BUSINESS SEGMENT
(Dollars in thousands)
(Unaudited)
                                                                                               
               Three months ended December 31,               Twelve months ended December 31,
                2012        2011       %                 2012          2011         %      
                                           Change                                            Change
Net sales
                                                                                                             
Aerospace      $ 101,092     $ 99,091      2.0               $ 390,483       $ 382,506       2.1
                                                                                                             
Industrial       147,638       102,572     43.9                497,043         440,482       12.8
                                                                                                             
Distribution     79,740        83,359      (4.3   )            350,739         355,262       (1.3   )
                                                                                                             
Intersegment    (1,088  )    (1,736  )   37.3               (8,306    )    (8,895    )   6.6
sales
                                                                                                             
Total net      $ 327,382    $ 283,286    15.6              $ 1,229,959    $ 1,169,355    5.2
sales
                                                                                                             
Operating
profit
                                                                                                             
Aerospace      $ 18,982      $ 18,099      4.9               $ 63,251        $ 62,647        1.0
                                                                                                             
Industrial       15,187        6,819       NM                  43,914          39,094        12.3
                                                                                                             
Distribution    5,577       3,959      40.9               29,391        25,814       13.9
                                                                                                             
Total
operating      $ 39,746     $ 28,877     37.6              $ 136,556      $ 127,555      7.1
profit
                                                                                                             
Operating                                  Change                                            Change
margin
                                                                                                             
Aerospace        18.8    %     18.3    %   50         bps.     16.2      %     16.4      %   (20    )   bps.
                                                                                                             
Industrial       10.3    %     6.6     %   370        bps.     8.8       %     8.9       %   (10    )   bps.
                                                                                                             
Distribution    7.0     %    4.7     %   230        bps.    8.4       %    7.3       %   110        bps.
                                                                                                             
Total
operating        12.1    %     10.2    %   190        bps.     11.1      %     10.9      %   20         bps.
margin
                                                                                                             

                                                                          
BARNES GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
                                                     
                                                                             
                                         December 31,       December 31,
                                         2012               2011
Assets
Current assets
Cash and cash equivalents                $  86,356          $  62,505
Accounts receivable                         253,202            200,460
Inventories                                 226,220            216,520
Deferred income taxes                       33,906             28,829
Prepaid expenses and other current         18,856            21,680
assets
                                                                             
Total current assets                        618,540            529,994
                                                                             
                                                                             
Deferred income taxes                       29,961             47,661
Property, plant and equipment, net          233,097            210,784
Goodwill                                    579,905            366,104
Other intangible assets, net                383,972            272,092
Other assets                               23,121            13,730
                                                                             
Total assets                             $  1,868,596       $  1,440,365
                                                                             
Liabilities and Stockholders'
Equity
Current liabilities
Notes and overdrafts payable             $  3,795           $  12,364
Accounts payable                            99,037             92,524
Accrued liabilities                         96,364             92,250
Long-term debt - current                   699               540
                                                                             
Total current liabilities                   199,895            197,678
                                                                             
Long-term debt                              642,119            333,148
Accrued retirement benefits                 159,103            152,696
Deferred income taxes                       48,707             20,662
Other liabilities                           18,654             13,781
                                                                             
Total stockholders' equity                 800,118           722,400
                                                                             
Total liabilities and                    $  1,868,596       $  1,440,365
stockholders' equity
                                                                             

                                                                          
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
                                                     
                                                                             
                                        Twelve months ended December 31,
                                        2012                2011
Operating activities:
Net income                              $  95,249           $ 64,715
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization              57,360             58,904
Amortization of convertible debt           2,211              2,158
discount
Gain on disposition of property,           (178     )         (379     )
plant and equipment
Stock compensation expense                 8,819              8,319
Withholding taxes paid on stock            (1,150   )         (1,124   )
issuances
Loss on the sale of businesses             799                26,128
Changes in assets and
liabilities, net of the effects
of acquisitions/divestitures:
Accounts receivable                        (4,160   )         (24,707  )
Inventories                                5,404              (12,384  )
Prepaid expenses and other                 (4,341   )         59
current assets
Accounts payable                           (5,493   )         615
Accrued liabilities                        (9,659   )         11,226
Deferred income taxes                      9,446              5,386
Long-term retirement benefits              (16,438  )         (18,367  )
Other                                     (1,492   )        475      
                                                                             
Net cash provided by operating             136,377            121,024
activities
                                                                             
Investing activities:
Proceeds from disposition of               854                3,620
property, plant and equipment
(Payments for) proceeds from the
sale of businesses, net of cash            (438     )         22,492
sold
Change (investment) in restricted          4,900              (11,664  )
cash
Capital expenditures                       (37,787  )         (37,082  )
Business acquisitions, net of              (296,560 )         (3,495   )
cash acquired
Other                                     (3,776   )        (4,483   )
                                                                             
Net cash used by investing                 (332,807 )         (30,612  )
activities
                                                                             
Financing activities:
Net change in other borrowings             (8,852   )         7,168
Payments on long-term debt                 (114,411 )         (411,661 )
Proceeds from the issuance of              376,000            392,390
long-term debt
Premium paid on convertible debt           -                  (9,803   )
redemption
Proceeds from the issuance of              7,061              28,579
common stock
Common stock repurchases                   (19,037  )         (34,066  )
Dividends paid                             (21,662  )         (18,629  )
Excess tax benefit on stock                1,438              8,056
awards
Other                                     (1,261   )        (2,229   )
                                                                             
Net cash provided (used) by                219,276            (40,195  )
financing activities
                                                                             
Effect of exchange rate changes           1,005            (1,162   )
on cash flows
                                                                             
Increase in cash and cash                  23,851             49,055
equivalents
                                                                             
Cash and cash equivalents at              62,505           13,450   
beginning of year
                                                                             
Cash and cash equivalents at end        $  86,356          $ 62,505   
of year

                                                                          
BARNES GROUP INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH
FLOW
(Dollars in thousands)
(Unaudited)
                                                      
                                                                             
                                        Twelve months ended December 31,
                                        2012                 2011
Free cash flow:
                                                                             
Net cash provided by operating          $  136,377           $ 121,024
activities
Capital expenditures                      (37,787  )         (37,082 )
                                                                             
Free cash flow^(1)                      $  98,590           $ 83,942  
                                                                             

(1) The Company defines free cash flow as net cash provided by operating
activities less capital expenditures. The Company believes that the free cash
flow metric is useful to investors and management as a measure of cash
generated by business operations that can be used to invest in future growth,
pay dividends, repurchase stock and reduce debt. This metric can also be used
to evaluate the Company's ability to generate cash flow from business
operations and the impact that this cash flow has on the Company's liquidity.

                                                                                                         
BARNES GROUP INC.
NON-GAAP FINANCIAL MEASURE RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
                                                                                     
                 Three months ended December 31,             Twelve months ended December 31,
                  2012         2011        % Change         2012           2011          % Change
SEGMENT
RESULTS
Net Sales -
Industrial       $ 147,638     $ 102,572     43.9            $ 497,043       $ 440,482       12.8
Segment as
reported
                                                                                                         
Operating
Profit -
Industrial         15,187        6,819       NM                43,914          39,094        12.3
Segment as
reported
(GAAP)
                                                                                                         
Synventive
short-term
purchase           775           -                             4,987           -
accounting
adjustments
Synventive
acquisition       3            -                            912            -
transaction
costs
                                                                                                         
Operating
Profit -
Industrial
Segment as       $ 15,965      $ 6,819       NM              $ 49,813        $ 39,094        27.4
adjusted
(Non-GAAP)
^(1)
                                                                                                         
Operating
Margin -
Industrial         10.3%         6.6%        370    bps.       8.8%            8.9%          (10)   bps.
Segment as
reported
Operating
Margin -
Industrial      10.8%      6.6%      420   bps.    10.0%        8.9%        110   bps.
Segment as
adjusted
^(1)
                                                                                                         
CONSOLIDATED
RESULTS
Net Sales as     $ 327,382     $ 283,286     15.6            $ 1,229,959     $ 1,169,355     5.2
reported
                                                                                                         
Operating
Income as          39,746        28,877      37.6              136,556         127,555       7.1
reported
(GAAP)
                                                                                                         
Synventive
short-term
purchase           775           -                             4,987           -
accounting
adjustments
Synventive
acquisition       3            -                            912            -
transaction
costs
                                                                                                         
Operating
Income as
adjusted         $ 40,524      $ 28,877      40.3            $ 142,455       $ 127,555       11.7
(Non-GAAP)
^(1)
                                                                                                         
Operating
Margin as          12.1%         10.2%       190    bps.       11.1%           10.9%         20     bps.
reported
Operating
Margin as       12.4%      10.2%     220   bps.    11.6%        10.9%       70    bps.
adjusted
^(1)
                                                                                                         
Diluted
Income from
Continuing
Operations       $ 0.54        $ 0.43        25.6            $ 1.78          $ 1.64          8.5
per Share as
reported
(GAAP)
                                                                                                         
Synventive
short-term
purchase           0.01          -                             0.07            -
accounting
adjustments
Synventive
acquisition       -            -                            0.01           -
transaction
costs
                                                                                                         
Diluted
Income from
Continuing
Operations       $ 0.55        $ 0.43        27.9            $ 1.86          $ 1.64          13.4
per Share as
adjusted
(Non-GAAP)
^(1)
                                                                              
                                                                                                         

(1) The Company has excluded short-term purchase accounting adjustments and
transaction costs related to its Synventive acquisition from its "as adjusted"
financial measurements. Management believes that these adjustments provide the
Company and its investors with an indication of our baseline performance
excluding items that are not considered to be reflective of our ongoing
results. Management does not intend results excluding the adjustments to
represent results as defined by GAAP, and the reader should not consider it as
an alternative measurement calculated in accordance with GAAP, or as an
indicator of the Company's performance. Accordingly, the measurements have
limitations depending on their use.

Contact:

Barnes Group Inc.
William Pitts
Director, Investor Relations
860-583-7070
 
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