UPDATE 2-Barnes warns Boeing delays may impact Q4, into 2011

* Q3 EPS $0.27 vs est $0.28; sales up 11 pct

* Sees FY 2010 EPS $0.95-$1.00

* Sees Boeing program delays impacting Q4, 2011 H1
(Adds conference call details, share movement, background)

Oct 29 (BestGrowthStock) – Diversified manufacturer Barnes Group
Inc (B.N: ) said it expects a change in the schedule of Boeing
Co’s (BA.N: ) 787 Dreamliner and 747-8 programs to impact its
fourth quarter and the first half of 2011.

Barnes, which began life as a metal parts shop in 1857,
supplies aerospace components to General Electric Co (GE.N: ), an
engine supplier for Boeing.

Boeing said in August its 787 program, nearly 3 years
behind its original schedule, would be delayed to the middle of
the first quarter of 2011. [ID:nSGE67Q06R]

Last month, it said it would delay first delivery of the
747-8 Freighter, its biggest commercial jet, for the third

The delays have affected the schedule of more than 50
engine sets, Barnes Chief Executive Gregory Milzcik said on a
conference call with analysts.

The maker of aerospace and industrial components said its
aerospace original equipment maker (OEM) sales were roughly
flat for the third quarter, but order intake rose 51 percent,
pushing the OEM backlog to $362 million.

Barnes, which also operates a logistics segment, narrowed
its 2010 earnings outlook to $0.95-$1.00 a share, from a prior
view of $0.90-$1.10, on 8-10 percent revenue growth.

The company said its cautious outlook took into account the
possibility of a slowdown in economic recovery and increased
pricing pressure.

“We continue to believe customers are actively managing
costs and maintaining minimum levels of inventory,” Milzcik
said. “And we would expect these customers to be especially
cautious as we close out 2010.”


July-September earnings rose to $15.1 million, or 27 cents
a share, just missing analysts expectations of 28 cents.

The company, whose peers include aerospace component makers
Precision Castparts Corp (PCP.N: ), HEICO Corp (HEI.N: ) and
Esterline Technologies Corp (ESL.N: ), posted an 18 percent jump
in precision components unit sales to $154 million, helped by
strong order rates and demand in North America and Europe.

Shares of the Bristol, Connecticut-based company were
trading down 2 percent at $17.99 Friday morning on the New York
Stock Exchange. The stock has gained 23 percent since touching
a year-low of $14.97 on Aug. 24.
(Reporting by Soham Chatterjee in Bangalore; Editing by
Jarshad Kakkrakandy)

UPDATE 2-Barnes warns Boeing delays may impact Q4, into 2011