Barnes Distribution 4Q sales down 4%
Barnes Distribution reported fourth quarter 2012 sales of $79.7 million, down 4% compared to the fourth quarter of 2011.
The company said the decline was a result of "softness in North American markets and a focus on more profitable accounts."
Operating profit of $5.6 million increased 41% from last year primarily due to pricing actions, customer mix, and lower employee related costs, namely incentive compensation.
Full year 2012 sales were $350.7 million, down 1% from 2011. Organic sales declined as customers continued to manage costs and inventory levels and as the business focused on more profitable accounts. Foreign exchange decreased sales by $1.1 million.
Full year 2012 operating profit was $29.4 million, up 14% from 2011. The profit increase was driven by lower employee related costs, namely incentive compensation, customer mix, and lower cost structures, partially offset by higher pension costs and the impact of lower sales volumes.
Barnes Group also announced plans to sell its North American Distribution Business to MSC Industrial Direct for $550 million. The transaction is expected to close in late March or early in the second quarter of 2013.
“We’re very pleased to announce the sale of our BDNA business to MSC Industrial Direct,” said Gregory F. Milzcik, president and chief executive officer of Barnes Group Inc. “MSC is gaining an established leader in vendor managed inventory distribution and Barnes Group is further advancing its strategy of adjusting the business portfolio to focus on core manufacturing and aftermarket capabilities.”
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
