Barnes Group Inc. has a market cap of $1.01 billion; its shares were traded at around $18.38 with a P/E ratio of 23.87 and P/S ratio of 0.98. The dividend yield of Barnes Group Inc. stocks is 1.74%. Barnes Group Inc. had an annual average earning growth of 5.9% over the past 10 years.B is in the portfolios of David Dreman of Dreman Value Management, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:In the second quarter of 2010, sales grew 10.5% from the second quarter of 2009 to $281.9 million primarily as a result of organic sales growth at Precision Components. Operating income increased 67.4% to $23.7 million primarily as a result of the profit impact of the higher sales volume and lower cost structures. Net income improved 41.9% to $14.8 million.
Net sales for the six-month period ended June 30, 2010 were $560.0 million, an increase of $42.7 million or 8.2% from the six-month period ended June 30, 2009. The sales increase reflected $37.2 million of organic sales growth which included $47.7 million at Precision Components offset, in part, by organic sales declines at Logistics and Manufacturing Services of $7.8 million. The weakening of the U.S. dollar against foreign currencies in the first half of 2010 compared to the first half of 2009, primarily in Canada and Brazil, increased net sales by approximately $5.5 million in the first half of 2010.
Net other income (expenses) was $(1.0) million in the second quarter of 2010 compared to $1.8 million in the second quarter of 2009. For the six-month period ended June 30, 2010, net other income (expense) was $(1.4) million compared to $1.4 million in the six-month period ended June 30, 2009. The 2009 periods reflected a $2.3 million gain on the purchase of certain of the Companys convertible notes.
Interest expense decreased $1.0 million in the second quarter of 2010 and $1.8 million in the first half of 2010 compared to prior year amounts primarily as a result of lower borrowings compared to the 2009 periods.
Operating profit at Logistics and Manufacturing Services in the second quarter of 2010 decreased 18.3% from the second quarter of 2009 to $10.2 million and operating profit in the first half of 2010 decreased 31.3% to $18.5 million. The decline in both periods was driven primarily by the profit impact of lower sales volumes in the higher margin aerospace aftermarket business offset in part by the profit impact of higher sales in the distribution businesses. Additionally, lower cost structures resulting from previous actions to align the cost structure with sales volumes primarily in the distribution businesses favorably impacted profitability, however these savings were offset by investments in 2010 in the distribution businesses to address sales force productivity and by higher employee incentive compensation.
Operating profit in the second quarter of 2010 at Precision Components was $13.5 million compared to $1.7 million in the second quarter of 2009 and in the first half of 2010 was $24.9 million compared to $7.7 million in the first half of 2009. Operating profit improvements in 2010 were due primarily to the profit impact of higher sales levels in 2010, lower cost structures resulting from previous productivity actions, and initiatives focused on costs savings and cost containment. These increases were partially offset by additional costs incurred to meet increased customer demand and higher employee incentive compensation. The 2009 periods included a severance charge of $2.5 million.
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