Engineered products and technology solutions provider Barnes Group reported its 2020 second quarter financial results on Tuesday, showing accelerated sales and profit declines for the Bristol, CT-based company.
Barnes reported Q2 total sales of $236 million, down 37 percent year-over-year, with organic sales down 32 percent. Operating profit of $10.1 million sunk 82.2 percent, while adjusted operating profit of $27.8 million was down 52 percent. Q2 operating margin of 4.3 percent compared with 15.3 percent of a year earlier, while adjusted operating margin of 11.8 percent was down 390 base points year-over-year. Q2 total profit of $0.6 million was a fraction of the $37.6 million it earned a year earlier.
“As expected, the severe disruption brought on by the COVID-19 pandemic significantly impacted our businesses across the globe," said Patrick Dempsey, Barnes Group president and CEO. "The aerospace industry was virtually shut down as aircraft manufacturers halted production and airlines cut flights, parked aircraft, and curtailed spending. Industrial end markets struggled as customers’ manufacturing operations were offline or operating at a fraction of their normal capacity. In anticipation of the approaching disruption, we took comprehensive pre-emptive actions to adjust our cost structure and preserve cash. While restructuring initiatives are never easy, our actions position the company to remain competitive in a very challenging environment and will contribute to a more expedient recovery and a stronger business."
By business segment in Q2:
- Industrial sales of $165 million were down 29 percent year-over-year, with organic sales down 22 percent. The company attributed the decline to significant volume decrease caused by COVID-19 business impacts on the automotive and industrial end markets.
- Aerospace sales of $70.5 million were down 49 percent year-over-year, with OEM sales down 52 percent and aftermarket sales down 42 percent. The company said COVID-19 essentially shut down global aerospace end markets.