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Barnes to sell distribution business for $550M

Published on NewsOK Modified: February 22, 2013 at 8:56 am •  Published: February 22, 2013

Barnes Group shares climbed $2.57, or 10.5 percent, to $27.04 in morning trading while MSC Industrial rose $2.87, or 3.5 percent, to $85.96.

Barnes also said Friday that its fourth-quarter net income jumped to $29.7 million, or 54 cents per share, from just $66,000, or zero cents per share, in the same quarter the year before. Revenue rose 16 percent to $327 million, helped by a 44 percent jump in industrial sales to $147.6 million.

Analysts, on average, expected a profit of 51 cents per share on $327.4 million in revenue, according to FactSet.

For the full year 2012, Barnes earned $95.2 million, or $1.72 per share, up from $64.7 million, or $1.16 per share, in 2011. Revenue rose 5 percent to $1.23 billion.

Barnes projected a 2013 profit of $2.03 to $2.18 per share, while analysts expect earnings of $2.15 per share.

Excluding the effects of the distribution business sales and the CEO transition, the company said it expects revenue to grow between 14 percent and 18 percent in 2013. Based on the company's 2012 results, the guidance implies 2013 revenue of $1.4 billion to $1.45 billion. Analysts expect $1.4 billion.