Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
October 25, 2019 12:28 PM

Barnes sees 'challenging' global industrial market

Bill Bregar
Senior Staff Reporter
Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Dempsey

    Barnes Group Inc. has managed to deliver solid bottom-line performance even in what company leaders called a "challenging" global industrial market that has hit Barnes' Industrial business segment — including continuing softness in automotive hot runners and some other areas.

    CEO Patrick Dempsey also said pending European packaging regulations have caused customers to hold off on investment in personal care products there, and the impact could cascade into in other parts of the world.

    Molding Solutions Group sales were down 11 percent in the third quarter, from the year-ago period — and Barnes is giving a full-year 2019 outlook for Molding Solutions as down by low-single digits, and down high-single digits when measured organically.

    "Automotive hot runners, personal care and packaging markets remain strained, while the medical market remains solid," Dempsey said in a third -quarter conference call with financial analysts Oct. 25.

    Companywide, Barnes plays in the industrial segment and the aerospace segment, which focus on aircraft components and has been solid during the economic uncertainty, generating a 12.1 percent third quarter gain, even with the economic uncertainty.

    The total Industrial segment declined 5.1 percent, with third quarter sales of $231.7 million, down from 244.1 million in the prior-year period. Dempsey said ongoing productivity improvements helped the industrial segment's operating margin grow in the third quarter by 14.3 percent.

    "Every one of our businesses has been anticipating increasing headwinds over the course of the year and have taken actions earlier in the year," Dempsey said.

    Companywide, Barnes generated third quarter sales of $373 million, up just 1 percent from the third quarter of 2018. But net income increased 17 percent, to $45.7 million.

    "Despite the top-line performance, we continue to deliver strong financial performance," Dempsey said. And Barnes' outlook for 2019 now projects flat revenue growth for the full year. Factors include slowing global growth, trade uncertainties and softening automotive production.

    Dempsey gave some insights into issues facing the Molding Solutions Group, which includes Synventive and Thermoplay hot runners, Männer and Foboha molds and Gammaflux and Priamus control technologies.

    Economic uncertainty and trade wars have led customers to defer product launches, he said.

    Dempsey said the mold businesses have a "relatively strong" backlog for the rest of the year, and molds have been growing. But what he called "short cycle" businesses such as hot runners have been impacted by "continued headwinds against the backdrop of trade and economic uncertainties." He said Barnes continues to invest on the short cycle areas and has added a chief technology officer.

    The automotive sector is holding up, Dempsey said, and in the third quarter began showing what he called some "green shoots" signaling new-model launches — a big factor for investment by plastics-related suppliers. But no model launches are happening in Europe, and China is operating at a slow pace, he added.

    But Dempsey said. that at some point, the new automotive product launches will break loose.

    "As we move into 2020 we should expect that those launches and new model changes would continue to take place, but unless these trade uncertainties get resolved, I think it will be on a slower rate that we any of us would like," he said.

    In response to an analyst's question, Dempsey also said European regulations are slowing new product development there in personal care products, usually a consumer staple that holds up regardless of a slowing economy.

    "In the case of personal care, what is currently happening is that there is a set of regulations that are at are being contemplated at the moment to the use of post-consumer resin. And so that happening at this juncture, which causes uncertainty as to how those regulations are actually going to play out," Dempsey said.

    Because Barnes works closely with product manufacturers, the industrial company is in a good place to help with the problem, but it will take time to have a clearer picture, he said.

    Barnes Group exhibited at K 2019, the huge trade show that just ended in Germany. Dempsey said Barnes showed how it works very closely with customers to foster sustainable production and focus on environmental issues.

    RECOMMENDED FOR YOU
    Pipe extruder fined for child labor law violation
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    ExxonMobil weighing options for more chemical recycling capacity
    2
    Wilbert Plastic Services adjusts to changes with new owner, leadership
    3
    PepsiCo on a ‘multiyear journey' toward bioplastics
    4
    After years of challenges, can secondary sortation take off?
    5
    Biden sets US goal to replace 90% of plastics with biomaterials
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified