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Barnes Group Inc., Bristol, CT, announced financial results for the fourth quarter and year ended December 31, 2001. Net sales for the fourth quarter of 2001 were $183.5 million, down two percent from $187.9 million in the fourth quarter of 2000. The company reported a net loss of $0.8 million in the fourth quarter of 2001, compared to net income of $7.8 million in the year-ago period. Net income in the fourth quarter of 2001 included a pretax charge of $4.8 million, equivalent on an after-tax basis to $0.16 per diluted share, related to the closure of an Associated Spring plant in Dallas, Texas and the reorganization of the sales management function at Barnes Distribution. This charge was previously disclosed in a press release issued December 20, 2001.
Net sales were a record $768.8 million for the full year 2001, up four percent from net sales of $740.0 million in 2000. Net sales growth in 2001 reflected $61 million in incremental sales from the company's recent acquisitions and strong organic growth at Barnes Aerospace, substantially offset by the effects of a sluggish industrial economy on organic sales at Associated Spring and Barnes Distribution.
Net income for 2001 was $19.1 million compared with $35.7 million in 2000. The earnings decline primarily reflected the fourth quarter charge noted above and the profit impact of the decline in organic sales at Associated Spring and Barnes Distribution, partially offset by the higher sales volume at Barnes Aerospace and efforts to reduce costs throughout Barnes Group.
"Although 2001 presented some difficult challenges - some that we've seen before in a cyclical economy, some that were unprecedented we remained focused on building lasting value for our stockholders by creating sustainable, profitable growth," said Edmund M. Carpenter, Barnes Group Inc.'s president and CEO. "We worked aggressively to cut costs and infrastructure Company-wide; completed two acquisitions that complemented our existing businesses; generated significant cash flow from our operations; and positioned our businesses to succeed as the economic climate becomes more favorable," Carpenter added.
Sales at Barnes Aerospace were a record $52.9 million for the fourth quarter of 2001, up 30 percent from $40.7 million in the fourth quarter of 2000. Sales grew in all four of Barnes Aerospace's key markets - commercial aircraft, government and military, business jets, and industrial gas turbines - reflecting an intensive global sales effort. Operating profit doubled to $3.6 million for the quarter ended December 31, 2001, as a result of the higher sales volume, partially offset by investments in sales, engineering and R&D. Barnes Aerospace recorded orders of $43 million during the fourth quarter of 2001 and $216 million for the full year; order backlog at year-end 2001 was $159 million, up from $145 million at year-end 2000.
Full-year sales at Barnes Aerospace were a record $200.4 million in 2001, up 48 percent from 2000, which reflected both strong growth in sales to new and existing customers and sales from the September 2000 acquisition of Kratz-Wilde Machine Company and Apex Manufacturing, Inc. Operating profit at Barnes Aerospace more than doubled to $16.4 million for the year ended December 31, 2001, compared with $8.0 million in the year-ago period. Operating profit grew largely as a function of the increased sales volume, and through efforts to reduce expenses and more widespread use of lean manufacturing methods.
"Despite the turmoil caused in the commercial aircraft market by the events of September 11th, Barnes Aerospace turned in a stellar year in 2001. Although order backlog is strong, Barnes Aerospace management is carefully positioning the business for what will likely be a challenging upcoming year; this includes the elimination of approximately 80 positions that was carried out in January 2002. At the same time, they are focusing on ramping up orders and