Barnes Group Inc. (B) has reported a 32.78 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $38.30 million, or $0.70 a share in the quarter, compared with $28.85 million, or $0.53 a share for the same period last year. On an adjusted basis, earnings per share were at $0.71 for the quarter compared with $0.54 in the same period last year. Revenue during the quarter grew 18.54 percent to $341.80 million from $288.33 million in the previous year period. Gross margin for the quarter expanded 28 basis points over the previous year period to 35.68 percent. Total expenses were 83.69 percent of quarterly revenues, down from 85.60 percent for the same period last year. This has led to an improvement of 191 basis points in operating margin to 16.31 percent.
Operating income for the quarter was $55.75 million, compared with $41.53 million in the previous year period.
However, the adjusted operating income for the quarter stood at $56.35 million compared to $42.34 million in the prior year period. At the same time, adjusted operating margin improved 180 basis points in the quarter to 16.49 percent from 14.69 percent in the last year period.
"Building on the continued execution of our growth strategy and coupled with the sustained benefits of the Barnes Enterprise System, the Company's first quarter represents a strong start to the year," said Patrick J. Dempsey, president and chief executive officer of Barnes Group Inc. "We generated double-digit organic sales growth in both segments, improved our operating margin, and grew backlog. This performance provides us with a greater confidence for 2017 and allows us to raise our outlook for the year," added Dempsey.
For fiscal year 2017, Barnes Group Inc. expects revenue to grow in the range of 8 percent to 9 percent. It company expects adjusted operating income to grow in the range of 16 percent to 17 percent. It projects diluted earnings per share to be in the range of $2.65 to $2.75. It projects diluted earnings per share to be in the range of $2.68 to $2.78 on adjusted basis for the same period.
Operating cash flow improves significantly
Barnes Group Inc. has generated cash of $51.84 million from operating activities during the quarter, up 69.79 percent or $21.31 million, when compared with the last year period. The company has spent $11.56 million cash to meet investing activities during the quarter as against cash outgo of $15.43 million in the last year period. It has incurred net capital expenditure of $11.56 million on net basis during the quarter, down 10.99 percent or $1.43 million from year ago period.
The company has spent $20.10 million cash to carry out financing activities during the quarter as against cash outgo of $24.25 million in the last year period.
Cash and cash equivalents stood at $88.28 million as on Mar. 31, 2017, up 14.86 percent or $11.42 million from $76.86 million on Mar. 31, 2016.
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