Barnes Group Inc., Bristol, CT, aerospace and industrial components manufacturer and distributor, reported sales in 2007 grew 14% to $1.44 billion, and profit was up 37%.
Sales in the fourth quarter were $358.9 million, an increase of 9%. Sales increase reflected $19.4 million of organic sales growth at Barnes Aerospace. Profit for the quarter was down 5% to $17.6 million.
Barnes Distribution saw sales of $128.5 million in the fourth quarter of 2007, a decline of approximately 1% over the fourth quarter of 2006. Barnes Distribution's organic sales decreased $5.7 million, or approximately 4%. The lower organic sales were due to softness in certain markets in North America, primarily the construction support and transportation related markets, and to the short-term effects of implementing Project Catalyst initiatives.
Sales in Canada and Europe as reported in U.S. dollars were favorably impacted by the strength of the local currencies, increasing sales by approximately $4.5 million in the fourth quarter of 2007.
Barnes Aerospace had sales of $105.2 million in the fourth quarter 2007, an increase of 34% from the prior-year period. The sales increase reflects growth of 31% in aftermarket sales.
Manufacturing sales increased 35% for the quarter on the strength of the sales order backlog. The total order backlog at Barnes Aerospace at the end of the fourth quarter of 2007 was $472.6 million, up from $403 million at Dec. 31, 2006.
Barnes Industrial saw sales for the fourth quarter of 2007 at $125.6 million, an increase of 4% over the fourth quarter 2006. Sales in Europe, as reported in U.S. dollars, were favorably impacted by the strength of the local currencies increasing sales by $6.2 million.
European businesses continued to generate strong revenue growth as the markets remained healthy during the fourth quarter. Conversely, North American businesses continued to face organic growth challenges, particularly in the transportation end markets, including North American heavy duty truck, and telecom and electronics.
Lower sales within the precision valves business were negatively impacted by continued pricing pressures in the compressor market due to the decline in consumer home product sales, coupled with a continued customer shift to low-cost countries and the associated localization of suppliers.
The general industrial end markets including tool-and-die and energy performed well during the quarter and the European businesses continued to record strong orders. In addition, backlog is at record level within these businesses.