Barnes Group Inc. Reports Higher Earnings for Third Quarter

15 October 1998

Barnes Group Inc. Reports Higher Earnings for Third Quarter

    BRISTOL, Conn.--Oct. 15, 1998--Barnes Group Inc. reported today a 6 percent increase in its third quarter earnings per share to $.53, compared to $.50 for the same period a year ago. Sales for the third quarter were flat at $158 million, while net income was $10.7 million, a 5 percent increase over the $10.1 million reported last year.
    For the nine-month year-to-date period, the company reported earnings per share of $1.35, or $1.73 before a non-recurring charge of $.38 per share related to the accelerated retirement package for president and chief executive officer Theodore E. Martin. This compares to $1.53 for the comparable period in 1997. Nine-month net income was $27.2 million, or $34.9 million before the non-recurring charge, compared to $31.0 million for the same period a year earlier. Sales for the period were $496 million compared to $483 million for the prior year.
    "Given the current unsettled economic situation in Asia and the General Motors (GM) strike at the beginning of the quarter, the company was generally pleased with its third quarter earnings performance," said Theodore E. Martin, president and chief executive officer.
    Barnes Aerospace continued to turn in record results in both sales and profits in the third quarter as it capitalized on the strong commercial aviation market. "Sales for the quarter and nine month period increased 11 percent and 18 percent, respectively, compared to a year earlier," said Martin. The company further reported that backlog continued strong and that sales and profits for the remainder of the year should continue at near record levels.
    Bowman Distribution continued to experience a slowdown in North American sales that began in the second quarter. Both the third quarter and nine-month sales results for Bowman lagged behind those reported a year earlier, down almost 6 percent for the quarter and 3 percent for the nine-month period. Profitability also declined in line with the sales shortfall in the third quarter, although year-over-year profits are up due to aggressive cost management throughout the period.
    Associated Spring's third quarter sales and earnings were down from the prior year primarily due to the impact of the GM strike and the current economic situation in Asia. However, nine-month results show improvements in both sales and earnings on the strength of its North America and Mexico businesses.
    Barnes Group Inc. (http://www.barnesgroupinc.com) is a $650 million diversified international company headquartered in Bristol, CT. It is a leading manufacturer of complex metal components and precision springs for industrial, automotive and aerospace markets and a major distributor of maintenance repair and overhaul products to industrial and transportation markets.
    The company cautions readers that certain factors may affect the company's results for future fiscal periods. These factors involve risks and uncertainties that could cause future results to differ materially from those expressed or implied in forward-looking statements made on behalf of the company.
    For further information, please call our FAX-On-Demand Service at 800-311-4606. For Barnes Group Inc. news on the Internet, see http://www.barnesgroupinc.com or http://www.businesswire.com/cnn.



                           BARNES GROUP INC.
                         FINANCIAL HIGHLIGHTS
              (Dollars in millions, except per share data)
                               Unaudited 

                                Three months Ended   Nine months ended
                                     Sept. 30,          Sept. 30, 
                                  1998       1997     1998     1997
INCOME STATEMENT

Net sales                        $158.3    $158.5    $496.3   $482.5

Operating income(a)                16.9      16.1      43.2     50.4

Net income(a)                      10.7      10.1      27.2     31.0

Income per share - basic(a)        $.53      $.50     $1.35    $1.53
                 - diluted(a)       .52       .49      1.33     1.50

Dividends per share                 .18       .16       .51      .48


                               Sept. 30,    Dec. 31, 
                                 1998         1997
BALANCE SHEET

Cash and cash equivalents        $44.8        $32.5

Working capital                  118.6        113.1

Borrowings                        62.5         62.4

Shareholders' equity             188.5        180.9


(a) Includes a one-time pre-tax charge for CEO retirement package of 
$12.9 million ($7.7 million after tax, $.38 per share) recorded in 
June 1998.