Logistics and manufacturing services provider Barnes Group Inc. (B) reported the sale completion of its Barnes Distribution North America business to MSC Industrial Direct Co., Inc. (MSM) for around $550 million cash. The after-tax sale proceeds of nearly $400 million would be used to reduce debt, buyback common shares, invest in profitable growth initiatives including potential acquisitions, and for general corporate purposes. In addition, the Group revised its full-year 2013 guidance to include the impacts of the completed sale of BDNA and the company's prior announced chief executive transition.
For 2013, Barnes Group now sees revenue from continuing operations to grow 17% to 20% from 2012, with GAAP earnings per share from continuing operations likely to be in the range of $1.71 to $1.86. Adjusted earnings per share are projected to be in the range of $1.83 to $1.98 for the year. Six analysts anticipate earnings of $2.09 per share in 2013.
Further, the company published a supplement of adjusted historical financial results reflecting the move of BDNA to discontinued operations and the re-segmentation of the business into two reportable units such as Aerospace and Industrial. As previously indicated, Barnes Group would report BDNA as discontinued operations beginning with the first quarter of 2013. BDNA's results had been reported within the company's Distribution segment. Moreover, the remaining business within the Distribution unit, Associated Spring Raymond, has been realigned into the company's Industrial division.
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