Barnes Group Q2 Profit Falls, Lifts FY Outlook

(RTTNews) - Aerospace and industrial manufacturer Barnes Group, Inc. (B) Friday reported a sharp fall in second-quarter profit, as the prior-year benefited from a gain from discontinued operations. Net sales grew about 20 percent from last year. Adjusted earnings met analysts' expectations, while revenues came above view. The company also lifted its outlook for full year 2014.

For the second quarter, the company's net income fell to $30.23 million or $0.54 per share from $209.33 million or $3.82 per share in the previous year.

The prior-year had recorded income from discontinued operations, net of taxes, totaling $200.13 million, or $3.65 per share.

Earnings from continuing operations for the year-ago quarter were $0.17 per share. On an adjusted basis, income from continuing operations was $0.59 per share, while the firm posted $0.47 per share a year ago.

On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.59 for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 20.4 percent to $322.07 million from $267.39 million in the prior year, driven by the sales contribution from the recently acquired Männer business. Analysts expected revenue of $315.70 million for the quarter. Organic sales were up 6 percent.

For full-year 2014, Barnes now expects GAAP earnings from continuing operations to be in the range of $2.03 to $2.13 per share. Adjusted earnings per share from continuing operations are anticipated to be in the range of $2.23 to $2.33. Analysts expect the company to report 2014 profit per share of $2.26.

Earlier, the company forecast earnings from continuing operations to be in the range of $1.98 to $2.08 per share, and adjusted earnings per share from continuing operations of $2.20 to $2.30 per share.

Revenues are now expected to grow 15 to 17 percent, or 5 to 7 percent on an organic basis. Barnes Group previously anticipated 2014 total revenue to grow 14 to 17 percent on a reported basis, and 4 to 7 percent growth on an organic basis.

Barnes Group shares are currently trading at $36.54, down 4.72 percent.