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Sales for the fourth quarter were $276.4 million, up 10% from $251.6 million in the fourth quarter 2004. Adjusted net income increased 79 percent to $12.0 million in the fourth quarter 2005.
Sales at Barnes Distribution were $112.8 million for the fourth quarter 2005, up 8% from $104.2 million in the same quarter last year. Driving this growth were increases in U.S., Canadian and European operations as well as Raymond Distribution. Barnes Distribution Raymond and Barnes Distribution Europe included the third quarter acquisitions of Service Plus Distributors, Inc. and Toolcom Supplies Ltd., respectively. Barnes Distribution's key growth initiatives, Corporate Accounts and Tier II, posted double-digit sales increases in the fourth quarter, up 10% and 54%, respectively, as compared to last year.
Reported operating profit for Barnes Distribution in the fourth quarter of 2005 was $5.3 million, up from an adjusted operating profit of $1.4 million in the year-ago quarter. The strong improvement in adjusted operating profit was due to higher sales volume, improved gross margin, and a decrease in distribution costs.
For all of 2005, sales at Barnes Distribution were $453.8 million, up 7 percent from $424.8 million in 2004. Adjusted operating profit for 2005 was $24.6 million, up 53 percent from an adjusted operating profit of $16.1 million last year, due to higher sales volume and improved gross margins driven by costs savings and operational improvements.
"Barnes Distribution continues its strategic focus on sales and operational improvements," said Idelle K. Wolf, President, Barnes Distribution. "With continued distribution network improvements, decreasing distribution costs and service levels sustained at targeted ranges, Barnes Distribution is well positioned to execute its growth initiatives in 2006."
Sales at Associated Spring were $101.1 million in the fourth quarter 2005, up 4% from $97 million in the comparable quarter in 2004. For all of 2005, sales at Associated Spring were $422.4 million, up 13% from $373.5 million in 2004.
Sales at Barnes Aerospace were $64.2 million for the fourth quarter 2005, up 25% from $51.4 million in the fourth quarter of 2004. Generating this sales growth in the fourth quarter was an 18% increase in Original Equipment Manufacturer (OEM) sales and a 48% increase in Aftermarket sales including Maintenance, Repair and Overhaul (MRO) and aftermarket Revenue Sharing Programs (RSPs). Orders for Barnes Aerospace in the fourth quarter were $77.7 million, compared to $71.5 million in the previous fourth quarter. Backlog increased to a record $269.3 million.
For all of 2005, sales at Barnes Aerospace were $235.4 million, up 14% from $205.9 million in 2004. Operating profit increased 33% in 2005 to $28.4 million from $21.4 million in 2004, driven by the increased sales volume particularly from the higher margin aftermarket RSPs and the increase in MRO sales.
"Barnes Aerospace achieved records in sales, orders, backlog and operating profit in 2005," said Patrick J. Dempsey, President, Barnes Aerospace. "During 2006, Barnes Aerospace will continue its focus on accelerating profitable growth by adding capacity through improved productivity, capital initiatives, and the transition of selected manufacturing activities to Singapore."
Barnes Group Inc. is a diversified international manufacturer of precision metal components and assemblies and a distributor of industrial supplies, serving a wide range of markets and customers.