Barnes Group Q4 Profit Tops View, Issues Weak Guidance

(RTTNews) - Aerospace and industrial manufacturer Barnes Group, Inc. (B) reported Friday a profit for the fourth quarter that declined 10 percent from last year, despite double-digit sales growth, reflecting lower margins and acquisition related costs.

Adjusted earnings per share from continuing operations topped analysts' expectations, while quarterly sales missed their estimates. The company also provided earnings forecast for the full-year 2014, just below Street view.

The Bristol, Connecticut-based company reported net income of $26.82 million or $0.48 per share for the fourth quarter, lower than $29.73 million or $0.54 per share in the prior-year quarter.

Income from continuing operations for the quarter declined to $26.31 million or $0.47 per share from $26.73 million or $0.49 per share in the year-ago quarter.

Excluding items, adjusted income from continuing operations for the quarter was $0.57 per share, compared to last year's $0.50 per share. On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share for the quarter. Analysts estimates typically exclude special items.

Net sales for the quarter grew 12.8 percent to $291.1 million from $258.2 million in the same quarter last year, but missed five Wall Street analysts' consensus estimate of $297.54 million.

Sales growth was driven by organic sales growth of 5 percent and sales contribution from the recently acquired Männer business.

Industrial net sales for the quarter grew 16.9 percent to $184 million, and aerospace revenues increased 6.2 percent to $107 million in the prior-year quarter.

Operating margin for the quarter contracted 160 basis points to 11.7 percent from last year's 13.3 percent.

For fiscal 2013, the company reported net income of $270.5 million or $4.92 per share, sharply higher than $95.2 million or $1.72 per share in the prior year. Income from continuing operations declined to $72.3 million or $1.31 per share from $79.8 million or $1.44 per share in the year ago.

Excluding items, adjusted income from continuing operations for the year was $1.83 per share, compared to last year's $1.52 per share.

Net sales for the full year grew 17.5 percent to $1.09 billion from $928.8 million in the previous year. Organic sales growth was 4 percent.

Analysts expected the company to report full-year 2013 earnings of $1.80 per share on annual revenues of $1.10 billion.

Looking ahead to fiscal 2014, the company expects adjusted earnings from continuing operations in a range of $2.15 to $2.30 per share, on projected revenue growth of 14 to 17 percent and 5 to 8 percent on an organic basis. Street is currently looking for full-year 2014 earnings of $2.33 per share on annual revenue growth of 14.8 percent to $1.26 billion.

B closed Thursday's regular trading session at $37.81, up $0.35 on a volume of 0.17 million shares. In the past 52-week period, the stock has been trading in a range of $25.38 to $40.92.