Barnes Group Inc. Provides Business Update Related to COVID-19 Impact
03 April 2020 - 7:15AM
Business Wire
- Unprecedented COVID-19 Impact Disrupts Global End
Markets
- Withdraws Full Year 2020 Business Outlook Given Heightened
Uncertainty
- Solid Financial Position, Sufficient Liquidity Profile
Sustained
Barnes Group Inc. (NYSE: B), a global provider of highly
engineered products, differentiated industrial technologies, and
innovative solutions, today announced that given the unprecedented
end market environment and the significant macroeconomic disruption
brought on by the global COVID-19 pandemic, the Company is
withdrawing its full year 2020 sales, earnings, and other outlook
provided on February 24, 2020.
“Rapidly evolving business conditions and heightened levels of
uncertainty make it prudent to withdraw our current guidance,” said
Patrick J. Dempsey, President and Chief Executive Officer of Barnes
Group Inc. “As a Company, our primary concern is the safety and
well-being of our employees and their families, our customers, and
our suppliers. While much of our global manufacturing of essential
systems and components continues at reduced levels, the current
situation is very dynamic, and visibility of future operations is
challenged,” added Dempsey. “In the meantime, we’ll continue to
work in close collaboration with our customers and suppliers to
support them in this dynamic environment.”
Barnes Group is in a solid financial position with sufficient
liquidity to navigate through today’s challenging business.
environment. The Company has liquidity of approximately $400
million consisting of cash of approximately $120 million and
undrawn revolving credit facility of approximately $280 million.
The Company is in full compliance with all covenants under the
revolving credit facility which matures in February 2022.
Management continues to monitor developments on a continuing basis
and has taken proactive measures to reduce costs and manage working
capital.
The Company will provide an update of its business operations
and environment on its first quarter 2020 earnings call scheduled
for April 24, 2020.
About Barnes Group Barnes Group Inc. (NYSE: B) is a
global provider of highly engineered products, differentiated
industrial technologies, and innovative solutions, serving a wide
range of end markets and customers. Its specialized products and
services are used in far-reaching applications including aerospace,
transportation, manufacturing, automation, healthcare, and
packaging. Barnes Group’s skilled and dedicated employees around
the globe are committed to the highest performance standards and
achieving consistent, sustainable profitable growth. For more
information, visit www.BGInc.com.
Forward-Looking Statements This press release contains
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements often
address our expected future operating and financial performance and
financial condition, and often contain words such as "anticipate,"
"believe," "expect," "plan," "estimate," "project," and similar
terms. These forward-looking statements do not constitute
guarantees of future performance and are subject to a variety of
risks and uncertainties that may cause actual results to differ
materially from those expressed in the forward-looking statements.
These include, among others: difficulty maintaining relationships
with employees, including unionized employees, customers,
distributors, suppliers, business partners or governmental
entities; failure to successfully negotiate collective bargaining
agreements or potential strikes, work stoppages or other similar
events; difficulties leveraging market opportunities; changes in
market demand for our products and services; rapid technological
and market change; the ability to protect and avoid infringing upon
intellectual property rights; introduction or development of new
products or transfer of work; higher risks in global operations and
markets; the impact of intense competition; acts of terrorism,
cybersecurity attacks or intrusions that could adversely impact our
businesses; the impacts of the COVID-19 pandemic on our business,
including on demand, supply chain and operations; uncertainties
relating to conditions in financial markets; currency fluctuations
and foreign currency exposure; future financial performance of the
industries or customers that we serve; our dependence upon revenues
and earnings from a small number of significant customers; a major
loss of customers; inability to realize expected sales or profits
from existing backlog due to a range of factors, including changes
in customer sourcing decisions, material changes, production
schedules and volumes of specific programs; the impact of
government budget and funding decisions; government tariffs, trade
agreements and trade policies; the impact of new or revised tax
laws and regulations; the adoption of laws, directives or
regulations that impact the materials processed by our products or
their end markets; changes in raw material or product prices and
availability; restructuring costs or savings; the continuing impact
of prior acquisitions and divestitures; integration of acquired
businesses; and any other future strategic actions, including
acquisitions, divestitures, restructurings, or strategic business
realignments, and our ability to achieve the financial and
operational targets set in connection with any such actions; the
outcome of pending and future legal, governmental, or regulatory
proceedings and contingencies; product liabilities and uninsured
claims; future repurchases of common stock; future levels of
indebtedness; and numerous other matters of a global, regional or
national scale, including those of a political, economic, business,
competitive, environmental, regulatory and public health nature
(including the COVID-19 pandemic); and other risks and
uncertainties described in documents filed with or furnished to the
Securities and Exchange Commission ("SEC") by the Company,
including, among others, those in the Management's Discussion and
Analysis of Financial Condition and Results of Operations and Risk
Factors sections of the Company's filings. The Company assumes no
obligation to update its forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20200402005775/en/
Barnes Group Inc. William Pitts Director, Investor Relations
860.583.7070
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