Why Shares of Barnes Group Slumped Today
Shares in engineering products company Barnes Group (NYSE: B) fell more than 8% by midday today. The move comes after a disappointing set of second-quarter earnings. Barnes sells into two main end markets: industrial (healthcare, automation, mobility, packaging, and advanced packaging) and aerospace (commercial and military).
In a common refrain during this earnings season, it's a story of aerospace being good (sales up 26% in the quarter), and broader industrial markets being weaker (sales down 10% in the quarter). Unfortunately, the improving outlook in aerospace isn't enough to fully offset the deterioration on the industrial side. As such, management cut its full-year guidance.
Management attributed the guidance cut to weaker Industrial performance and macroeconomic headwinds. In response to worsening conditions, CEO Thomas Hook said "we have commenced a systematic multiphased initiative to significantly reduce costs and integrate our operations."
Source Fool.com
