The 2020 Mid-Year Economic Update_long

Barnes Distribution Organic Sales Fall 1% in 3Q

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%.
&nbsp ;
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.
&nbsp ;
Profit was $27.7 million, up 46.7% from the prior-year period.
&nbsp ;
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. ...

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%.
&nbsp ;
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.
&nbsp ;
Profit was $27.7 million, up 46.7% from the prior-year period.
&nbsp ;
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.
&nbsp ;
Maintenance, Repair and Overhaul (MRO) sales grew 11.2% to $19.1 million.
&nbsp ;
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.
&nbsp ;
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%.
&nbsp ;
The lower organic sales were due to softness in certain markets in North America, primarily the construction-support and transportation-related markets.
&nbsp ;
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.
&nbsp ;
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.
&nbsp ;
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.
&nbsp ;
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.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.