February 16, 2018

Barnes posts 4Q profit loss

Flickr user Craig Howell
Flickr user Craig Howell
Barnes says valve springs are highly commoditized products.

Bristol manufacturer Barnes Group Inc. said Friday it recorded a fourth-quarter profit loss attributable mainly to higher costs associated with its industrial business.

For the period ended Dec. 31, the company reported a net loss of $59.2 million, or $1.10 a share, compared to net income of $36.7 million, or 68 cents a share, in the year-ago period.

For the entire year, net income declined 56 percent, to $59.4 million, or $1.09 a share, from $135.6 million, or $2.48 a share, in the year-ago period.

For the quarter, net sales rose 15 percent to $373 million from $324.2 million in the year-ago period. For the entire year, net sales climbed nearly 17 percent to $1.4 billion compared to $1.2 billion in the year-ago period.

The company said it continued to incur higher costs in certain programs within its engineered components' associated spring business, which contributed to the fourth-quarter profit loss. In addition, the quarter included restructuring costs of $1.4 million related to two previously announced plant consolidations, the company said.

"2017 was a good year for Barnes Group even as we dealt with some operational challenges within one of our industrial businesses," said Christopher J. Stephens Jr., Barnes' senior vice president of finance and CFO. "As we move beyond this in the first half of 2018, we anticipate solid revenue growth, improved financial performance, and good cash generation."

For 2018, the company expects sales growth of 4 percent to 6 percent and adjusted net income of $2.98 to $3.13 per share.

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