Bristol aerospace manufacturer Barnes Group Inc. reported a 66% drop in third-quarter profits, as the U.S. commercial aerospace market continues to suffer at the hands of COVID-19.
“As anticipated, the ongoing impacts of the global COVID-19 pandemic weighed on our business, although our sequential improvement and continued solid cash generation are encouraging,” Barnes CEO Patrick Dempsey said.
For the July-September period, Barnes on Friday reported profits of $15.4 million, or 30 cents per diluted share, down from $45.8, or 89 cents per diluted share, during 2019’s third quarter.
The drop — which follows a 98% profit decline in the second quarter — came as third quarter sales of $269 million were down 28% from $373 million in the year-ago period.
Barnes’ industrial segment recorded $197 million in sales, down 15% from $232 million in the prior year period, as the COVID-19 pandemic continued to weigh down the automotive and industrial markets.
The company’s aerospace segment posted sales of $72 million, down 49% from $141 million in the third quarter as, “aerospace end markets continued to be severely impacted by the global pandemic.”
Barnes said the company expects the pandemic’s negative effects will continue into the year’s final quarter, with sales likely down about 20%.
In July the Bristol manufacturer initiated a cost-savings effort to cut roughly 400 employees worldwide to save $30 million annually. It’s not clear how many Connecticut employees were laid off.