Barnes Group Inc. has reported its financial results for the first quarter of 2024, revealing a 28% increase in sales to $431 million. The company's operating margin stood at 9.2%, with adjusted operating margin at 11.9%, marking an 80 basis points increase. Adjusted EBITDA margin also saw a significant rise of 130 basis points, reaching 18.7%.
However, the GAAP EPS for the quarter was reported at $0.04, while adjusted EPS was $0.38, reflecting a 19% decrease compared to the prior year. The company's effective tax rate for the quarter was 85%, primarily driven by $6.8 million of tax expense related to the sale of the associated spring and hanggi businesses.
In terms of segment performance, the aerospace segment experienced a remarkable 89% increase in sales, reaching $221 million. Aerospace OEM sales saw an 85% increase, while aftermarket sales surged by 94%. Despite the significant sales growth, the adjusted operating margin for the aerospace segment declined by 180 basis points to 15.7%.
On the other hand, the industrial segment reported a 4% decrease in sales, amounting to $209 million. The operating profit for this segment was $8.6 million, and the adjusted operating margin was 7.8%, indicating a 20 basis points increase.
Furthermore, Barnes Group Inc. completed the sale of the associated spring & hanggi businesses in April 2024, which significantly reduced its exposure to automotive component manufacturing. The net cash proceeds of approximately $150 million from this divestiture will be utilized to reduce debt.
As of March 31, 2024, the company had $82 million in cash and $344 million available capacity under its revolving credit facility. The "net debt to EBITDA" ratio was reported at 3.62 times, slightly down from 3.64 times at the end of 2023.
Looking ahead, the company updated its full-year 2024 guidance, expecting organic sales growth of 5% to 8% and adjusted earnings per share in the range of $1.62 to $1.82.
Barnes Group Inc. is a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, with a focus on reshaping and positioning the company for long-term profitable growth. The market has reacted to these announcements by moving the company's shares -5.4% to a price of $33.96. Check out the company's full 8-K submission here.
