Barnes Group Inc. Announces Restructuring Actions
07 July 2020 - 6:15AM
Business Wire
- Adjustment of Cost Structure Due to Market Uncertainty
Brought on by the COVID-19 Pandemic
- Restructuring Charge of $18 Million to be Recorded in the
Second Quarter 2020
- Estimated Annualized Savings of Approximately $30
Million
Barnes Group Inc. (NYSE: B), a global provider of highly
engineered products, differentiated industrial technologies, and
innovative solutions, today announced that given the unprecedented
macroeconomic disruption brought on by the global COVID-19
pandemic, it will take a second quarter 2020 restructuring charge,
primarily severance related, of approximately $18 million. This
charge is anticipated to have a negligible cash impact in the
second quarter, an approximate $10 million cash impact in the
second half of 2020, and the remaining cash impact in 2021.
“The unprecedented disruption in global industrial and aerospace
end markets brought on by the COVID-19 pandemic necessitates our
adjusting costs throughout the Company to align with demand,” said
Patrick J. Dempsey, President and Chief Executive Officer of Barnes
Group Inc. “With the continued uncertainty related to the pace of
recovery, we have had to make some difficult decisions. Our ability
to manage costs allows Barnes Group to remain competitive as we
weather the pandemic and best position the Company for an economic
resurgence,” added Dempsey.
Through manufacturing and functional workforce reductions, the
Company anticipates annualized cost savings of approximately $30
million with realization of the savings beginning in the second
half of 2020. These actions are expected to reduce Barnes Group’s
global workforce by approximately 8%.
The Company will provide an update of its business operations
and end market environment on its Second Quarter 2020 Earnings Call
scheduled for Tuesday, July 28, 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: the ongoing impacts of the COVID-19 pandemic on our
business, including on demand, supply chain and operations and the
industries and customers that we serve; the failure to achieve
anticipated cost savings associated with the workforce reductions
and restructuring actions discussed in this news release (the
“Plan”); the ability to successfully execute the Plan; higher than
anticipated costs in implementing the Plan; the preliminary nature
of our cost and savings estimates related to the Plan, including
the timing of such charges and savings, which are subject to change
as the Company makes decisions and refines estimates over time;
timing delays in implementing the Plan; our ability to realize all
of the cost savings and benefits anticipated in connection with the
Plan; management and employee distraction resulting from the Plan;
and other risks and uncertainties described in documents filed with
or furnished to the Securities and Exchange Commission 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/20200706005509/en/
Barnes Group Inc. William Pitts Director, Investor Relations
860.583.7070
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