Barnes Clocks ~1% Sales Growth In Q4 Amid Persistent Pressures In Industrial Segment

Barnes Group Inc B reported fourth-quarter FY22 sales growth of 1% year-over-year at $313.5 million, +5% on an organic basis, missing the consensus of $322.6 million.
Adjusted EPS of $0.52 beat the consensus of $0.49.
Operating income declined 31.7% Y/Y to $24.2 million due to pressures in its Industrial segment.
Industrial segment sales decreased by 2.5% Y/Y to $204.97 million, and Aerospace segment sales increased by 7.7% Y/Y to $108.50 million.
Aerospace OEM backlog was at $750 million, up 10% Y/Y. The company expects to convert 40% of this backlog to revenue over the next 12 months.
At the end of the quarter, the company's liquidity comprised $77 million in cash and $533 million available under the revolving credit facility.
"Throughout 2022, we experienced ongoing recovery in our Aerospace business and persistent pressures in our Industrial businesses...We anticipate demonstrated progress in 2023 as we drive our 'Integrate, Consolidate, and Rationalize' initiative deep into the enterprise, which will benefit margins and improve our working capital efficiency," said CFO Julie K. Streich.
FY23 Outlook: Barnes expects organic sales growth of 6% - 8%.
It expects adjusted EPS of $2.10 - $2.30 (consensus $2.16).
Price Action: B shares closed lower by 1.42% at $43.67 on Thursday.

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