Barnes Group Inc., Bristol, CT, aerospace and industrial components manufacturer and distributor, reported third quarter 2007 sales of $360.4 million, an increase of 11.9%.
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The sales increase reflected $25.4 million of organic sales growth primarily at Barnes Aerospace. Acquisition-related growth contributed $6.8 million due to the KENT acquisition within Barnes Distribution. Foreign currency translation favorably impacted sales by approximately $6.2 million in 2007.
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Profit was $27.7 million, up 46.7% from the prior-year period.
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Barnes Aerospace
Barnes Aerospace generated sales of $103.2 million in the third quarter 2007, an increase of 33.6%. The third quarter 2007 sales increase reflects growth of 36.3% in aftermarket sales.
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Maintenance, Repair and Overhaul (MRO) sales grew 11.2% to $19.1 million.
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Manufacturing sales increased 32.4% for the quarter on the strength of the manufacturing backlog. The total order backlog at Barnes Aerospace at the end of the third quarter of 2007 was $469.9 million, up from $403 million at Dec. 31, 2006.
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Barnes Distribution
Barnes Distribution saw sales in the third quarter of $132 million, a 6.6% increase primarily as a result of $6.8 million of incremental sales from the acquisition of KENT in 2006. Barnes Distribution’s organic sales fell $1.3 million, or 1%.
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The lower organic sales were due to softness in certain markets in North America, primarily the construction-support and transportation-related markets.
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Partially offsetting this decline is continued market pricing and growth in Corporate and Tier II accounts, which grew 6% and 23%, respectively. Foreign currency translation favorably impacted sales by $2.7 million in the third quarter as foreign currencies strengthened against the U.S. Dollar, primarily in Europe and Canada.
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Barnes Industrial
Barnes Industrial sales for the third quarter were $125.6 million, a 3.5% increase. The increase in 2007 resulted primarily from the favorable impact on sales of foreign currency translation of $3.5 million as foreign currencies strengthened against the U.S. Dollar, primarily in Europe.
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Additionally, in the third quarter of 2007 Barnes Industrial recorded sales increases in the retention rings and nitrogen gas products businesses as compared to the 2006 period.
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The general industrial end markets including tool-and-die and energy performed well during the quarter and were partially offset by the transportation, including North American heavy duty truck, telecom and electronics end markets. 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.