Barnes Group Q2 Income From Cont. Opns. Down; Updates FY13 Outlook - Quick Facts

(RTTNews) - Aerospace and industrial equipment maker Barnes Group Inc. (B) reported that its second-quarter income from continuing operations declined to $9.19 million or $0.17 per share from $19.49 million or $0.35 per share in the year ago quarter.

Income from continuing operations in the latest-quarter included a tax charge of $16.6 million, or $0.30 per share, associated with the April 16, 2013 U.S. Tax Court's unfavorable decision arising out of an IRS audit for the tax years 2000 through 2002.

Excluding the impact of the U.S. Tax Court's decision, adjusted earnings per share from continuing operations for the second quarter of 2013 was $0.47, up 34% from $0.35 per share a year ago. Analysts polled by Thomson Reuters expected the company to report earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.

Net income for the quarter was $209.33 million or $3.82 per share, compared to $24.83 million or $0.45 per share in the same quarter last year.

On April 22, 2013, the Company completed the sale of its Barnes Distribution North America or BDNA business to MSC Industrial Direct Co., Inc. for the purchase price of $550 million and received cash of $540 million, net of working capital adjustments and transaction costs. In the second quarter of 2013, the Company recorded a gain on sale of $194 million, net of tax, representing the sales price less the asset value of BDNA and net of transaction-related costs.

Net sales from continuing operations increased 24% to $267.4 million from $215.3 million in the second quarter of 2012, driven largely by the sales contribution of the Synventive business. Four analysts had consensus revenue estimate of $269.40 million for the quarter.

The company said that Results for 2012 have been adjusted on a retrospective basis to reflect the BDNA discontinued operations.

For fiscal 2013, GAAP earnings per share from continuing operations are anticipated to be in the range of $1.43 to $1.53, compared to prior estimate of reported earnings per share from continuing operations in a range of $1.71 to $1.86.

Full-Year 2013 adjusted earnings per share from continuing operations are anticipated to be in the range of $1.85 to $1.95, up 22% to 28% from 2012's adjusted earnings per share from continuing operations of $1.52. Earlier, the company had expected adjusted earnings per share for the year in a range of $1.83 to $1.98.

The company now expects 2013 revenue from continuing operations to grow 17% to 19% from 2012 Previously, the company had expected revenue from continuing operations for the year to grow 17% to 20% from 2012.

Excluding $10.5 million pre-tax of non-recurring costs associated with the Company's CEO transition recorded in the first quarter, adjusted operating margins are expected to be in the range of 13.5% to 14% for 2013.

Analysts expect the company to report earnings of $1.91 per share and revenues of $1.09 billion for fiscal 2013.