Barnes Group Inc (B) Q3 2023 Earnings: Sales Up 15%, Adjusted EPS Down
Barnes Group Inc (NYSE:B) reported Q3 2023 net sales of $361 million, up 15% compared to the prior year period.
GAAP EPS was -$0.43, while Adjusted EPS was $0.19, down from $0.49 in the prior year period.
The company forecasts 2023 Organic Sales Growth of +5% to +6% and Adjusted EPS of $1.57 to $1.67.
Year-to-date cash provided by operating activities was $71.0 million, up from $43.5 million a year ago.
On October 27, 2023, Barnes Group Inc (NYSE:B), a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, reported its financial results for the third quarter of 2023. The company reported net sales of $361 million, marking a 15% increase compared to the prior year period. Organic sales increased by 4%, with foreign exchange having a positive impact of approximately 3% and acquisition revenues contributing 8%.
Financial Highlights
Operating income for Q3 2023 was $10.0 million, down from $30.0 million a year ago, and operating margin was 2.8%. Adjusted operating income was $39.0 million, essentially flat to a year ago, and adjusted operating margin was 10.8%, down 160 bps. The company reported a net loss for the third quarter of $21.7 million, or -$0.43 per share, compared to net income of $17.0 million, or $0.33 per share, a year ago. On an adjusted basis, net income per share of $0.19 was down 61% from $0.49 a year ago.
Segment Performance
Aerospace sales for Q3 were $156 million, up 41% from $111 million last year. Industrial sales were $205 million, up slightly from $204 million in the prior year period. Aerospace operating profit was $3.6 million, down from $21.2 million in the prior year period. Industrial operating profit was $6.4 million, down from $8.8 million in the prior year period.
Balance Sheet and Liquidity
As of the end of Q3 2023, the company had liquidity of $90 million in cash and $337 million available under the revolving credit. The "Net Debt to EBITDA" ratio was approximately 3.8 times at quarter end, reflecting the additional debt incurred in connection with the MB Aerospace acquisition.
2023 Full Year Outlook
Barnes forecasts organic sales growth of 5% to 6% for 2023 with adjusted operating margin of between 11% and 12%. Adjusted earnings are expected to be in the range of $1.57 to $1.67 per share. Capital expenditures are forecast to be approximately $50 million and free cash flow to be approximately $70 million.
Explore the complete 8-K earnings release (here) from Barnes Group Inc for further details.
This article first appeared on GuruFocus.
