Barnes Group Inc. (NYSE: B), Bristol, CT, No. 19 on MDM's list of the top 40 industrial distributors, and a diversified global manufacturer and logistical services company, reported sales for the third quarter 2010 were $289.9 million, an increase of 11.4 percent from the third quarter 2009. Profit was $15.1 million.
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Year-to-date, sales were $849.9 million, up 9.3 percent. Profit was $41.8 million.
Third quarter 2010 sales at Logistics and Manufacturing Services were $138.9 million, an increase of 5.8 percent. The increase was driven by revenue growth in the North American distribution businesses as economic conditions, including industrial production, continued to improve.
The European-based distribution business experienced a slight decline in sales compared to the same period last year mainly due to the negative impact of foreign exchange. Aerospace aftermarket reported an increase in sales over last year period reflecting modest improvement in maintenance, repair and overhaul activity and new product introduction.
Operating profit was $10.8 million, compared with $11.9 million in the third quarter of 2009. This primarily results from increased personnel costs related to expanding the sales force and improving productivity in the distribution businesses. Operating profit was also impacted by higher product and freight costs.
Order rates within Precision Components saw an increase over the prior year and outpaced sales for the fourth consecutive quarter. Third quarter 2010 sales were $154 million, up 18.4 percent from the same period last year. Year-over-year sales growth continued to be driven by improved market demand primarily from the industrial manufacturing businesses in North America and Europe and from improvements in the transportation industry, including automotive. Sales in the aerospace original equipment manufacturing business were relatively flat compared to the third quarter of 2009.
Operating profit for the third quarter 2010 increased to $14 million, as compared with $2.7 million in the third quarter 2009. The higher operating profit was due primarily to the increase in 2010 sales levels, as well as a lower fixed cost structure, and a focus on lean initiatives to improve operating efficiency. Sales gains helped offset higher personnel costs and expenses associated with increases in new product introductions.