Barnes Group posts 3Q profit drop

Barnes Group posts 3Q profit decline as economic downturn continues to depress results

• On 9:53 am EDT, Friday October 30, 2009

BRISTOL, Conn. (AP) -- Barnes Group Inc. said Friday its third-quarter profit fell 61 percent as the global economic downturn continued to dampen the aerospace and industrial parts maker's results.

Net income fell to $10.9 million, or 20 cents per share, in the three months ended Sept. 30 from $27.8 million, or 49 cents per share, during the year-earlier period.

The results included restructuring charges of $3.4 million before tax, or $1.7 million after tax.

Sales dropped 22 percent to $260.3 million from $333.8 million.

Analysts surveyed by Thomson Reuters, on average, expected profit of 21 cents per share on revenue of $254.4 million. Wall Street estimates typically exclude one-time items.

"We have not yet seen the sustained signs of a turnaround in the global economy," Gregory F. Milzcik, president and CEO, said in a statement. "The challenges posed in the third quarter were similar to what we have seen for the preceding six months in many of our end markets."

"However, we are optimistic about the prospects for economic improvement in 2010, so we continue to pursue internal initiatives we feel are essential to positioning Barnes Group for the future," he added.

The company has seen "stabilizing trends" in its transportation and industrial manufacturing businesses and expects a rebound in aerospace demand in the second half of 2010, he said.

Barnes Group shares fell $1.34, or 7.7 percent to $15.91 in morning trading.

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