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Barnes Group Inc. Reports Third Quarter 2013 Financial Results

  Barnes Group Inc. Reports Third Quarter 2013 Financial Results

  *Quarterly Net Sales from Continuing Operations of $269 million, up 16%
  *Quarterly Diluted EPS from Continuing Operations of $0.39, up 30% on a
    GAAP basis; Up 8% from Last Year’s Adjusted Quarterly Diluted EPS from
    Continuing Operations of $0.36
  *2013 EPS from Continuing Operations Guidance Updated to $1.33 to $1.38 per
    diluted share; $1.75 to $1.80 on an Adjusted Basis, Up 15% to 18% from
    2012

Business Wire

BRISTOL, Conn. -- October 25, 2013

Barnes Group Inc. (NYSE: B), an international aerospace and industrial
manufacturer and service provider, today reported financial results for the
third quarter of 2013. Net sales from continuing operations increased 16% to
$269.5 million from $232.5 million in the third quarter of 2012, driven by the
sales contribution of the Synventive business and organic sales growth of 5%.

Income from continuing operations for the third quarter was $21.4 million, or
$0.39 per diluted share, up 30% from $0.30 in the prior year period. On an
adjusted basis, income from continuing operations was up 8% from $0.36 per
diluted share a year ago. Last year’s adjusted diluted earnings from
continuing operations excluded the impact of $5.1 million pre-tax, or $0.06
per diluted share, of short-term purchase accounting adjustments and
transaction costs related to the acquisition of Synventive. A table
reconciling the 2012 non-GAAP adjusted results presented in this release to
our GAAP results is included at the end of this press release. In the current
quarter, income from continuing operations includes an $8.6 million pre-tax
inventory valuation charge related to exchange engine parts within the
Aerospace repair and overhaul business.

On October 1, 2013 the Company announced it had entered into a definitive
agreement to acquire privately held Männer, a leader in high precision
mold-making, valve gate hot runner systems, and system solutions for the
medical/pharmaceutical, packaging, and personal care/health care industries.
The acquisition is anticipated to close on October 31, 2013. Following the
closing, Männer will operate as a business unit within Barnes Group’s
Industrial Segment.

“During the third quarter we continued to execute our growth strategy of
focusing on differentiated products and processes. We announced the pending
acquisition of Männer, a recognized brand name and premium supplier of
complex, highly-engineered molds and hot runner systems. Männer’s end markets
are a good complement to those of our existing industrial businesses” said
Patrick J. Dempsey, President and Chief Executive Officer of Barnes Group Inc.
“Additionally, we delivered strong performance in our Industrial segment and
solid sales growth in our Aerospace OEM business, while our results in the
Aerospace aftermarket did not meet our expectations,” continued Dempsey.

($ millions;
except per     Three months ended September 30,                   Nine months ended September 30,
share data)
Unaudited        2013        2012       Change                    2013       2012       Change
Net Sales        $269.5        $232.5       $37.0     15.9 %        $800.4       $670.6       $129.9    19.4   %
Operating        $28.0         $22.5        $5.5        24.7 %        $89.1        $72.9        $16.3       22.3   %
Income
% of Sales       10.4    %     9.7    %                 0.7  pts.     11.1   %     10.9   %                 0.2    pts.
Income from
Continuing       $21.4         $16.0        $5.4        33.4 %        $46.0        $53.1        ($7.1)      (13.4) %
Operations
Net Income       $20.9         $18.5        $2.4        13.1 %        $243.7       $65.5        $178.2      NM
                                                                                                                   
Income from
Continuing
Operations       $0.39         $0.30        $0.09       30.0 %        $0.84        $0.97        ($0.13)     (13.4) %
Per Diluted
Share
                                                                                                                   
(Loss)
Income from
Discontinued     ($0.01)       $0.04        ($0.05)     NM            $3.60        $0.22        $3.38       NM
Operations
Per Diluted
Share
                                                                                                                   
Net Income
Per Diluted    $0.38      $0.34     $0.04     11.8 %      $4.44     $1.19     $3.25     NM     
Share
NM = Not
Meaningful

Aerospace

  *Third quarter 2013 sales were $101.7 million, up 3% from $98.4 million in
    the same period last year. A sales increase in original equipment
    manufacturing (“OEM”) was partially offset by declines in aftermarket
    repair and overhaul and spare parts sales.
  *Operating profit of $7.2 million for the third quarter of 2013 was down
    49% from the prior year period of $14.1 million. Operating profit
    benefited from the impact of higher OEM sales and lower employee related
    costs, offset by an $8.6 million inventory valuation charge related to
    exchange engine parts within the aftermarket repair and overhaul business,
    lower aftermarket sales, and higher new product introduction costs to
    support future growth programs.

Industrial

  *Third quarter 2013 sales were $167.7 million, up 25% from $134.1 million
    in the same period last year. The increase was driven by Synventive’s
    sales contribution, organic sales growth of 6%, and favorable foreign
    exchange of $0.5 million.
  *Operating profit of $20.9 million for the third quarter of 2013 was up
    $12.5 million from the prior year period driven by the profit contribution
    of Synventive, the profit impact of higher organic sales, and productivity
    improvements. During the 2012 period, operating profit was negatively
    impacted by $5.1 million of short-term purchase accounting adjustments and
    transaction costs related to the acquisition of Synventive.

Additional Information

  *Interest expense decreased to $2.4 million, down from $3.2 million in the
    prior year period primarily as a result of lower average borrowings in the
    current quarter as a portion of the proceeds from the Barnes Distribution
    North America sale were used to reduce debt.

  *The Company’s effective tax rate from continuing operations for the third
    quarter of 2013 was 15.8% compared with 12.7% in the third quarter of 2012
    and 13.5% for full year 2012. The effective tax rate increase in the third
    quarter 2013 versus the full year 2012 rate was mainly due to several
    discrete foreign tax related items in 2012 and an increase in the
    Company’s effective tax rate in Sweden, partially offset by a projected
    change in earnings attributable to higher-taxing jurisdictions.

Updated 2013 Outlook

Barnes Group is updating its 2013 guidance, which excludes the future impact
of the announced Männer acquisition. The Company now expects 2013 revenue from
continuing operations to grow approximately 16% from 2012. Excluding $10.5
million pre-tax of non-recurring costs associated with the Company’s CEO
transition recorded in the first quarter, adjusted operating margins are
expected to be in the range of 12.5% to 13.0% for 2013. GAAP earnings per
diluted share from continuing operations are anticipated to be in the range of
$1.33 to $1.38.

Full-Year 2013 adjusted earnings per diluted share from continuing operations
are anticipated to be in the range of $1.75 to $1.80, up 15% to 18% from
2012’s adjusted diluted earnings per share from continuing operations of
$1.52. Adjusted earnings per share from continuing operations exclude the
non-recurring CEO transition costs ($0.12 per share) and the tax charge as a
result of the U.S. Tax Court’s unfavorable ruling ($0.30 per share).

As a result of the Tax Court decision, the Company expects cash flows to be
negatively impacted by approximately $13 million in the fourth quarter of
2013. Excluding this item and the impact from the sale of BDNA, 2013 adjusted
cash conversion is anticipated to be greater than 100% of net income.

Conference Call

Barnes Group Inc. will conduct a conference call with investors to discuss
third quarter 2013 results at 8:30 a.m. EDT today, October 25, 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) 713-4213 in the U.S. or (617) 213-4865 outside of the
U.S. (request the Barnes Group Earnings Call), Participant Code: 22589800.

In addition, the call will be recorded and available for playback beginning at
12:00 p.m. (EDT) on Friday, October 25, 2013 by dialing (617) 801-6888,
Passcode: 26282633.

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 3,800
dedicated employees, at more than 60 locations worldwide, are committed to
achieving consistent and sustainable profitable growth. For more information,
visit www.BGInc.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
often address our expected future operating and financial performance and
financial condition, and often contain words such as "anticipate," "believe,"
"expect," "plan," "strategy," "estimate," "project," and similar terms. 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, among others: difficulty maintaining relationships
with employees, customers, distributors, suppliers, business partners or
governmental entities; difficulties leveraging market opportunities; changes
in market demand for our products and services; rapid technological and market
change; the ability to protect intellectual property rights; introduction or
development of new products or transfer of work; higher risks in international
operations and markets; the impact of intense competition; and other risks and
uncertainties described in documents filed with or furnished to the Securities
and Exchange Commission (SEC) by the Company, including, among others, those
in the Management's Discussion and Analysis of Financial Condition and Results
of Operations and Risk Factors sections of the Company's filings. The risks
and uncertainties described in our periodic filings with the SEC include,
among others, uncertainties relating to conditions in financial markets;
currency fluctuations and foreign currency exposure; future financial
performance of the industries or customers that we serve; our dependence upon
revenues and earnings from a small number of significant customers; a major
loss of customers; inability to realize expected sales or profits from
existing backlog due to a range of factors, including insourcing decisions,
material changes, production schedules and volumes of specific programs; any
potential adverse effects associated with a U.S. government shutdown; changes
in raw material or product prices and availability; integration of acquired
businesses; restructuring costs or savings; the continuing impact of prior
acquisitions and divestitures and our pending acquisition of Männer 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; the impacts of the U.S. Tax Court's April 16, 2013
decision and any related appeal; the outcome of pending and future legal,
governmental, or regulatory proceedings and contingencies; uninsured claims;
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 September 30,                  Nine months ended September 30,
                                                         %                                                 %
                   2013               2012 ^(1)                      2013               2012 ^(1)
                                                         Change                                            Change
                                                                                                                   
Net sales          $ 269,491          $ 232,476          15.9        $ 800,430          $ 670,580          19.4
                                                                                                                   
Cost of sales        189,488            170,349          11.2          544,615            483,138          12.7
Selling and
administrative      51,972           39,641          31.1         166,679          114,578         45.5
expenses
                                                                                                                   
                    241,460          209,990         15.0         711,294          597,716         19.0
                                                                                                                   
Operating            28,031             22,486           24.7          89,136             72,864           22.3
income
                                                                                                                   
Operating            10.4       %       9.7        %                   11.1       %       10.9       %
margin
                                                                                                                   
Interest             2,401              3,243            (26.0 )       10,000             8,046            24.3
expense
Other expense       241              873             (72.4 )      1,702            1,787           (4.8  )
(income), net
                                                                                                                   
Income from
continuing
operations           25,389             18,370           38.2          77,434             63,031           22.9
before income
taxes
                                                                                                                   
Income taxes        4,008            2,342           71.1         31,426           9,926           NM
                                                                                                                   
Income from
continuing           21,381             16,028           33.4          46,008             53,105           (13.4 )
operations
                                                                                                                   
(Loss) income
from
discontinued         (476       )       2,453            NM            197,696            12,414           NM
operations,
net of income
taxes
                                                                                     
Net income         $ 20,905          $ 18,481          13.1        $ 243,704         $ 65,519          NM
                                                                                                                   
Common             $ 5,775           $ 5,403           6.9         $ 16,495          $ 16,245          1.5
dividends
                                                                                                                   
Per common
share:
                                                                                                                   
Basic:
Income from
continuing         $ 0.40             $ 0.30             33.3        $ 0.86             $ 0.97             (11.3 )
operations
(Loss) income
from
discontinued        (0.01      )      0.04            NM           3.67             0.23            NM
operations,
net of income
taxes
Net income         $ 0.39            $ 0.34            14.7        $ 4.53            $ 1.20            NM
                                                                                                                   
Diluted:
Income from
continuing         $ 0.39             $ 0.30             30.0        $ 0.84             $ 0.97             (13.4 )
operations
(Loss) income
from
discontinued        (0.01      )      0.04            NM           3.60             0.22            NM
operations,
net of income
taxes
Net income         $ 0.38            $ 0.34            11.8        $ 4.44            $ 1.19            NM
                                                                                                                   
Dividends            0.11               0.10             10.0          0.31               0.30             3.3
                                                                                                                   
Weighted
average common
shares
outstanding:
Basic                53,009,720         54,508,387       (2.7  )       53,818,950         54,618,636       (1.5  )
Diluted              54,304,990         55,098,263       (1.4  )       54,854,456         55,234,478       (0.7  )
                                                                                                                   
NM - Not
Meaningful
                                                                                                                   
Notes:
(1) Results for 2012 have been adjusted on a retrospective basis to reflect the BDNA discontinued operations.

                                                                                  
BARNES GROUP INC.
OPERATIONS BY REPORTABLE BUSINESS SEGMENT
(Dollars in thousands)
(Unaudited)
                                                                                                      
               Three months ended September 30,               Nine months ended September 30,
                                               %                                              %
               2013            2012 ^(1)                      2013            2012 ^(1)
                                               Change                                         Change
Net sales
                                                                                                      
Aerospace      $ 101,744       $ 98,370        3.4            $ 296,622       $ 289,391       2.5
                                                                                                      
Industrial       167,747         134,107       25.1             503,809         381,191       32.2
                                                                                                      
Intersegment    -             (1      )     NM              (1      )      (2      )     50.0
sales
                                                                                                      
Total net      $ 269,491      $ 232,476      15.9           $ 800,430      $ 670,580      19.4
sales
                                                                                                      
Operating
profit
                                                                                                      
Aerospace      $ 7,157         $ 14,122        (49.3 )        $ 32,730        $ 39,798        (17.8 )
                                                                                                      
Industrial      20,874        8,364        NM              56,406        33,066       70.6
                                                                                                      
Total
operating      $ 28,031       $ 22,486       24.7           $ 89,136       $ 72,864       22.3
profit
                                                                                                      
Operating                                      Change                                         Change
margin
                                                                                                      
Aerospace        7.0     %       14.4    %     (740  ) bps.     11.0    %       13.8    %     (280  ) bps.
                                                                                                      
Industrial      12.4    %      6.2     %     620     bps.    11.2    %      8.7     %     250     bps.
                                                                                                      
Total
operating        10.4    %       9.7     %     70      bps.     11.1    %       10.9    %     20      bps.
margin
                                                                                                      
NM - Not
Meaningful
                                                                                                      
Notes:
(1) Results for 2012 have been adjusted on a retrospective basis to reflect the impact of the BDNA
discontinued operations, including a reallocation of corporate overhead expenses, and the segment
realignment.

                                                           
BARNES GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
                                                                 
                                                                 
                                               September 30,     December 31,

                                               2013              2012
Assets
Current assets
Cash and cash equivalents                      $  230,285        $  86,356
Accounts receivable                               230,167           253,202
Inventories                                       179,963           226,220
Deferred income taxes                             26,301            33,906
Prepaid expenses and other current assets        16,747           18,856
                                                                 
Total current assets                              683,463           618,540
                                                                 
                                                                 
Deferred income taxes                             29,523            29,961
Property, plant and equipment, net                224,411           233,097
Goodwill                                          452,935           579,905
Other intangible assets, net                      366,979           383,972
Other assets                                     21,863           23,121
                                                                 
Total assets                                   $  1,779,174      $  1,868,596
                                                                 
Liabilities and Stockholders' Equity
Current liabilities
Notes and overdrafts payable                   $  7,700          $  3,795
Accounts payable                                  92,580            99,037
Accrued liabilities                               127,768           96,364
Long-term debt - current                         54,833           699
                                                                 
Total current liabilities                         282,881           199,895
                                                                 
Long-term debt                                    285,600           642,119
Accrued retirement benefits                       130,190           159,103
Deferred income taxes                             48,498            48,707
Other liabilities                                 15,459            18,654
                                                                 
Total stockholders' equity                       1,016,546        800,118
                                                                 
Total liabilities and stockholders' equity     $  1,779,174      $  1,868,596

                                                            
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
                                                                  
                                                                  
                                               Nine months ended September 30,
                                               2013               2012
Operating activities:
Net income                                     $  243,704         $ 65,519
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                     44,957            40,190
Amortization of convertible debt discount         1,776             1,641
Gain on disposition of property, plant and        (632      )       (214     )
equipment
Stock compensation expense                        16,092            6,564
Withholding taxes paid on stock issuances         (2,045    )       (1,123   )
(Gain) loss on the sale of businesses             (313,471  )       788
Changes in assets and liabilities, net of
the effects of acquisitions/divestitures:
Accounts receivable                               (11,694   )       (12,317  )
Inventories                                       (405      )       981
Prepaid expenses and other current assets         (815      )       (5,683   )
Accounts payable                                  8,988             2,756
Accrued liabilities                               27,784            (4,295   )
Deferred income taxes                             (6,603    )       1,470
Long-term retirement benefits                     238               (17,967  )
Other                                            4,700           (1,009   )
                                                                  
Net cash provided by operating activities         12,574            77,301
                                                                  
Investing activities:
Proceeds from disposition of property,            895               556
plant and equipment
Proceeds from (payments for) the sale of          539,116           (339     )
businesses
Change in restricted cash                         -                 4,900
Capital expenditures                              (33,799   )       (22,923  )
Business acquisitions, net of cash                -                 (296,717 )
acquired
Other                                            (1,901    )      (3,013   )
                                                                  
Net cash provided (used) by investing             504,311           (317,536 )
activities
                                                                  
Financing activities:
Net change in other borrowings                    3,887             (4,558   )
Payments on long-term debt                        (482,158  )       (78,065  )
Proceeds from the issuance of long-term           178,000           376,000
debt
Proceeds from the issuance of common stock        10,873            5,630
Common stock repurchases                          (68,608   )       (19,037  )
Dividends paid                                    (16,495   )       (16,245  )
Excess tax benefit on stock awards                3,312             1,659
Other                                            (1,320    )      (1,184   )
                                                                  
Net cash (used) provided by financing             (372,509  )       264,200
activities
                                                                  
Effect of exchange rate changes on cash          (447      )      884      
flows
                                                                  
Increase in cash and cash equivalents             143,929           24,849
                                                                  
Cash and cash equivalents at beginning of        86,356          62,505   
period
                                                                  
Cash and cash equivalents at end of period     $  230,285        $ 87,354   

                                                     
BARNES GROUP INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(Dollars in thousands)
(Unaudited)
                                                             
                                                             
                               Nine months ended September 30,
                               2013                          2012
Free cash flow:
                                                             
Net cash provided by           $    12,574                   $   77,301
operating activities
Capital expenditures               (33,799     )               (22,923   )
                                                             
Free cash flow^(1)             $    (21,225     )            $   54,378    
                                                             
Free cash flow to
net income cash
conversion ratio (as
adjusted):
                                                             
Free cash flow (from           $    (21,225     )            $   54,378
above)
Income tax payments
related to the gain                95,714                     -         
on the sale of BDNA
Free cash flow (as                  74,489                       54,378
adjusted)^(2)
                                                             
Net income                          243,704                      65,519
Gain on the sale of
BDNA, net of income                 (194,417    )                -
taxes
April 2013 tax court               16,388                     -         
decision
Net income (as                 $    65,675                  $   65,519    
adjusted)^(2)
                                                             
Free cash flow to
net income cash                     113         %                83        %
conversion ratio (as
adjusted)^(2)
                                                             
Notes:
(1) The Company defines free cash flow as net cash provided by operating
activities less capital expenditures. In 2013, net cash provided by operating
activities is negatively impacted by $95.7 million of income tax payments
related to the gain on the sale of BDNA. The proceeds from the sale are
reflected in investing activities. 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.
                                                             
                                                             
(2) For the purpose of calculating the cash conversion ratio, the Company has
excluded the income tax payments related to the gain on the sale of BDNA made
during the nine months ended September 30, 2013 from free cash flow and the
gain on the sale of BDNA and the tax charge associated with the April 2013 tax
court decision from net income.

                                                                                            
BARNES GROUP INC.
NON-GAAP FINANCIAL MEASURE RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
                                                                                                            
                 Three months ended September 30,                 Nine months ended September 30,
                 2013           2012 ^(1)      % Change           2013           2012 ^(1)      % Change
SEGMENT
RESULTS
Operating
Profit -
Aerospace        $ 7,157        $ 14,122         (49.3 )          $ 32,730       $ 39,798         (17.8 )
Segment
(GAAP)
                                                                                                            
CEO
transition        -            -                               3,903        -      
costs
                                                                                                            
Operating
Profit -
Aerospace
Segment as       $ 7,157       $ 14,122        (49.3 )          $ 36,633      $ 39,798        (8.0  )
adjusted
(Non-GAAP)
^(2)
                                                                                                            
Operating
Margin -
Aerospace          7.0    %       14.4   %       (740  )   bps.     11.0   %       13.8   %       (280  )   bps.
Segment
(GAAP)
Operating
Margin -
Aerospace
Segment as         7.0    %       14.4   %       (740  )   bps.     12.4   %       13.8   %       (140  )   bps.
adjusted
(Non-GAAP)
^(2)
                                                                                                            
Operating
Profit -
Industrial       $ 20,874       $ 8,364          NM               $ 56,406       $ 33,066         70.6
Segment
(GAAP)
                                                                                                            
Synventive
short-term
purchase           -              4,212                             -              4,212
accounting
adjustments
Synventive
acquisition        -              909                               -              909
transaction
costs
CEO
transition        -            -                               6,589        -      
costs
                                                                                                            
Operating
Profit -
Industrial
Segment as       $ 20,874      $ 13,485        54.8             $ 62,995      $ 38,187        65.0
adjusted
(Non-GAAP)
^(2)
                                                                                                            
Operating
Margin -
Industrial         12.4   %       6.2    %       620       bps.     11.2   %       8.7    %       250       bps.
Segment
(GAAP)
Operating
Margin -
Industrial
Segment as      12.4   %    10.1   %    230     bps.   12.5   %    10.0   %    250     bps.
adjusted
(Non-GAAP)
^(2)
                                                                                                            
CONSOLIDATED
RESULTS
Operating
Income           $ 28,031       $ 22,486         24.7             $ 89,136       $ 72,864         22.3
(GAAP)
                                                                                                            
Synventive
short-term
purchase           -              4,212                             -              4,212
accounting
adjustments
Synventive
acquisition        -              909                               -              909
transaction
costs
CEO
transition        -            -                               10,492       -      
costs
                                                                                                            
Operating
Income as
adjusted         $ 28,031      $ 27,607        1.5              $ 99,628      $ 77,985        27.8
(Non-GAAP)
^(2)
                                                                                                            
Operating
Margin             10.4   %       9.7    %       70        bps.     11.1   %       10.9   %       20        bps.
(GAAP)
Operating
Margin as
adjusted        10.4   %    11.9   %    (150  )  bps.   12.4   %    11.6   %    80      bps.
(Non-GAAP)
^(2)
                                                                                                            
Diluted
Income from
Continuing       $ 0.39         $ 0.30           30.0             $ 0.84         $ 0.97           (13.4 )
Operations
per Share
(GAAP)
                                                                                                            
Synventive
short-term
purchase           -              0.05                              -              0.05
accounting
adjustments
Synventive
acquisition        -              0.01                              -              0.01
transaction
costs
CEO
transition         -              -                                 0.12           -
costs
April 2013
tax court         -            -                               0.30         -      
decision
                                                                                                            
Diluted
Income from
Continuing
Operations       $ 0.39        $ 0.36          8.3              $ 1.26        $ 1.03          22.3
per Share as
adjusted
(Non-GAAP)
^(2)
                                                                                                            
                                                                                      
                                                                                                            
                 Full-Year                     Full-Year 2013 Outlook ^(3)
                 2012 ^(1)
Diluted
Income from
Continuing       $ 1.44                        $ 1.33      to     $ 1.38
Operations
per Share
(GAAP)
                                                                                                            
Synventive
short-term
purchase           0.07                                    -
accounting
adjustments
Synventive
acquisition        0.01                                    -
transaction
costs
CEO
transition         -                                       0.12
costs
April 2013
tax court         -                                    0.30   
decision
                                                                                                            
Diluted
Income from
Continuing
Operations       $ 1.52                       $ 1.75     to     $ 1.80   
per Share as
adjusted
(Non-GAAP)
^(2)
                                                                                                            
                                                                                      
                                                                                                            
Notes:
(1) Results for 2012 have been adjusted on a retrospective basis to reflect the impact of the BDNA discontinued
operations, including a reallocation of corporate overhead expenses, and the segment realignment.
                                                                                                            
(2) The Company has excluded short-term purchase accounting adjustments and transaction costs related to its
Synventive acquisition in 2012 and CEO transition costs associated with the modification of outstanding equity
awards and the tax charge associated with the April 2013 tax court decision in 2013 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.
                                                                                                            
(3) Barnes Group's Full-Year 2013 Outlook excludes the impact of the announced Männer acquisition.

Contact:

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