Bristol-based aerospace manufacturer Barnes Group said Friday that its third-quarter profits declined 39% as the company continues cost-cutting efforts amid challenges from global events, inflation and recession concerns.
Barnes Group said that its third quarter net income was $17 million, or 33 cents per share, compared to $27.9 million, or 55 cents per share, a year ago. On an adjusted basis, earnings per share were 49 cents, down 11% from a year ago.
The company’s third quarter net sales were $315 million, down 3%, with organic sales increasing 2%.
Speaking after his first full quarter as CEO, Thomas Hook said he was impressed with the company’s people and manufacturing prowess but “not all aspects of our core business execution are performing at the level needed.” He said the company is evaluating its industrial sector to simplify and streamline that business.
Hook said the closure of the company’s Bristol production facility, which was announced in July, is tracking to plan and the company is also in the process of closing a molding solutions facility in Switzerland, which will be completed by next June. Further, Barnes has reduced headcount in Canada, Sweden, Spain, Germany and closed other small locations.
As part of the company’s multiphase restructuring plan that began in July, Hook said Barnes expects to save about $26 million annually following the changes.
“We will approach the work at hand with a refreshed organization culture built on candor, clarity and action,” Hook said. “We are focused on getting things done.”
Friday’s earnings call comes just weeks after Bloomberg reported that an activist investor was exploring the possible sale of the company.
According to the report, activist hedge fund Irenic Capital Management had reportedly built a stake in Bristol-based Barnes Group Inc. and was asking the aerospace manufacturer to make changes to its board of directors and pursue a strategic review, according to the publication. Irenic told management it believes Barnes could garner up to $60 per share in a sale, Bloomberg reported, citing unnamed sources.