Barnes Group Q4 2022 Earnings Report
Key Takeaways
Barnes Group Inc. reported a 1% increase in fourth-quarter sales to $313 million, with organic sales up 5%. GAAP EPS was $0.30, while adjusted EPS was $0.52, a 5% decrease year-over-year. The company is focused on strategic end markets, operational efficiencies, and enhanced profitability and cash flow.
Sales of $313 million, up 1% versus prior year period; Organic Sales up 5%.
Operating Margin of 7.7%; Adjusted Operating Margin of 11.2%, down 20 bps from a year ago.
GAAP EPS of $0.30; Adjusted EPS of $0.52, down 5% versus prior year period.
Solid book-to-bill in the quarter.
Barnes Group
Barnes Group
Barnes Group Revenue by Segment
Forward Guidance
Barnes expects organic sales growth of 6% to 8% for 2023 with adjusted operating margin in the range of 12.5% to 13.5%. Adjusted earnings are expected to be in the range of $2.10 to $2.30 per share, up 6% to 16% from 2022’s adjusted earnings of $1.98 per share.
Positive Outlook
- 2023 Organic Sales Growth of +6% to +8%
- 2023 Adjusted EPS of $2.10 to $2.30; Up 6% to 16% from 2022 Adjusted EPS of $1.98
- Capital expenditures of approximately $50 million
- Cash conversion of approximately 100% of net income
- Adjusted effective tax rate for 2023 is expected to be between 24.5% and 25.5%
Challenges Ahead
- Anticipated progress in 2023 as we drive our ‘Integrate, Consolidate, and Rationalize’ initiative deep into the enterprise which will benefit margins and improve our working capital efficiency.
- Ongoing recovery in our Aerospace business
- Persistent pressures in our Industrial businesses
- Targeted restructuring actions underway
- Laying a stronger foundation upon which to improve our operational and financial performance moving forward.
Revenue & Expenses
Visualization of income flow from segment revenue to net income