(Source: Business Wire)
Barnes Group Inc. (NYSE: B), a leading international aerospace and industrial components manufacturer and logistical services company, today reported several 2008 actions it has taken to improve the performance of the Company's global business segments. These actions have impacted our worldwide businesses and address deteriorating economic conditions, severe declines in the transportation end-market, and the effects of the Boeing strike.
"During the fourth quarter of 2008 our entire organization continued to proactively anticipate and adapt to the unprecedented changes affecting all of our businesses as a result of the tumultuous economy," said Gregory F. Milzcik, President and Chief Executive Officer, Barnes Group Inc. "Given the deceleration in global demand for our products and services we took numerous actions to improve our overall cost structure, enhance our manufacturing footprint, and strengthen our global operations. We believe our actions, in addition to our strong balance sheet and end-market diversification strategies position the company to weather the anticipated difficult year ahead," continued Milzcik.
As we previously announced in October 2008, the Company realigned its three-group reporting structure into two global business segments (Precision Components, and Logistics and Manufacturing Services) by aligning its strategic business units with a focus on core functional and delivery capabilities. Aligning the segments for growth and efficiency reduces administrative costs and strengthens our focus on the needs of customers which will help the Company achieve its long-term goals of consistent and sustainable profitable growth.
Precision Components
Precision Components implemented discrete actions to improve the overall profitability of its operations in response to the current market challenges. The aggregate pre-tax charge for the actions within Precision Components is approximately $8.0 million. This charge will be recorded in the fourth quarter of 2008. Actions comprise workforce reductions and product rationalization activities throughout the business and include vacating the Central Lake, Michigan facility when its lease expires in September of 2009 and idling the Monterrey, Mexico facility, both of which primarily support the transportation industry. The work from these facilities is being transferred to other locations that perform similar operations.
Cost reduction efforts were also implemented within Precision Components' aerospace Original Equipment Manufacturing (OEM) business.
