Barnes Group Inc. has recently 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 Molding Solutions’ comprehensive portfolio of advanced technologies and value-added services delivers premium tool-based solutions where demanding specifications are required by global customers in the plastic injection molding industry across a broad spectrum of applications, including quality hot runners, complex molds, sensor technologies, and control systems.
