Barnes Group Q1 Profit Rises, But Miss Estimates; Cuts 2014 GAAP EPS View

(RTTNews) - Aerospace and industrial manufacturer Barnes Group Inc. (B) reported that its first quarter 2014 net income increased to $22.75 million or $0.41 per share, from $13.47 million or $0.24 per share in the same quarter last year.

Income from continuing operations for the first quarter was $22.8 million, or $0.41 per share, up from $0.28 in the prior year period.

On an adjusted basis, income from continuing operations was $0.50 per share, up 25% from $0.40 a year ago. 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.

First quarter 2014 adjusted earnings from continuing operations exclude the impact of Männer short-term purchase accounting adjustments of $4.9 million pre-tax, or $0.06 per share, and costs related to the close of production operations at Associated Spring's Saline, Michigan facility which were $2.8 million pre-tax, or $0.03 per share.

For the first quarter 2013, adjusted earnings from continuing operations exclude $10.5 million pre-tax, or $0.12 per share, of non-recurring CEO transition costs.

Net sales increased 18% to $312.1 million from $263.5 million in the first quarter of 2013, driven by organic sales growth of 4% and the sales contribution from the recently acquired Männer business. Five analysts estimated revenues of $306.34 million for the quarter.

The company now expects 2014 GAAP earnings from continuing operations to be in the range of $1.98 to $2.08 per share, compared to prior estimate of $2.02 to $2.17 per share.

Excluding Männer short-term purchase accounting adjustments and the Saline closure costs, adjusted earnings per share from continuing operations are anticipated to be in the range of $2.20 to $2.30, up 20% to 26% from 2013's adjusted earnings per share of $1.83. Earlier, the company expected Annual adjusted earnings per share from continuing operations to be in the range of $2.15 to $2.30.

The company now expects 2014 total revenue to grow 14% to 17%, 4% to 7% on an organic basis. Earlier, the company expected total revenue to grow 14% to 17%, 5% to 8% on an organic basis for fiscal 2014.