Barrick Mining Corporation

Good morning, my name is Chris and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Barnes second quarter 2022 earnings conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, please press star one again. Thank you, Bill Pitts, VP, Investor Relations. You may begin.

Bill Pitts Thank you, Chris. Good morning, and thank you for joining us for our second quarter 2022 earnings call. With me are Barnes new president and chief executive officer Thomas Hook and senior vice president finance and chief financial officer Julie Strike. If you have not received a copy of our earnings press release, You can find it on the investor relations section of our corporate website at BarnesGroupInc.com. During our call, we will be referring to the earnings release supplement slides, which are also posted on our website. Our discussion today includes certain non-GAAP financial measures, which provide additional information we believe is helpful to investors. These measures have been reconciled to the related GAAP measures in accordance with SEC regulations. You will find a reconciliation table on our website as part of our press release and in the form 8K submitted to the Securities and Exchange Commission. Be advised that certain statements we make on today's call, both during the opening remarks and during the question and answer session, may be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Please consider the risks and uncertainties that are mentioned in today's call and are described in our periodic filings with the SEC. These filings are available through the investor relations section of our corporate website at BarnesGroupInc.com. Let me now turn the call over to Tom for his opening remarks. Then Julie will provide a review of our second quarter financial results and our updated outlook for 2022. After that, we'll open up the call for questions.

Thank you, Bill, and good morning to everyone. I'm honored to be appointed as the new president and chief executive officer of Barnes, and I look forward to leading the company into the next chapter of its remarkable history. I appreciate Tom Barnes and the board's confidence and would like to thank the Barnes leadership team for their warm welcome. In time, I look forward to meeting more of the Barnes team as I visit our operations across the globe. In addition, I would like to acknowledge Patrick Dempsey's significant contributions to Barnes over the last 22 years with nearly 10 as the chief executive officer. All of us on the Barnes team wish him and his family the best. Having served on the Barnes board since 2016, I am keenly aware of the quality of our portfolio, management team, and global workforce. Under Patrick's leadership, the company has seen a significant transformation. He has built a legacy of teamwork established via the principles and applications of the Barnes Enterprise System. As my CEO tenure begins, I'll be diving deep into the organization to have a more detailed look at our operations, core technologies, capabilities, and opportunities for growth. In doing so, my goal is to extract greater value from the efforts of the entire Barnes team. We will take an action-oriented approach to reduce complexity across the organization, to attack the critical few initiatives that have the greatest impact, and to move with increased speed and agility. Prioritizing business execution across the portfolio, driving organic growth, and tapping into new markets. I anticipate leveraging Barnes' capabilities and my professional experience to grow in markets like medical technologies. These are the focus areas that I believe will drive shareholder returns and employee engagement to a higher level, actions for which I will hold myself personally accountable. These are also the things that I will hold the team accountable for. Regarding the second quarter, our financial performance mirrored the first quarter in many ways. Second quarter organic sales grew 5% from the year ago, and adjusted earnings per share were up 24%. Our book-to-bill ratio was a healthy 1.16 times, giving us two consecutive quarters with a solid result, and both segments generated greater than one times ratio. Performance was driven by aerospace, which once again generated strong revenue growth and margin expansion, propelled by robust aftermarkets. Industrial continues to see mounting economic pressures from several factors which have inhibited our ability to drive the performance we expect to achieve from these businesses. Ongoing macroeconomic headwinds, including the shadow of the Ukraine conflict in Europe, and automotive market weakness continue to impact us, and we now see these pressures sustained for a longer period of time, leading us to reduce our performance expectations the second half correspondingly we have commenced a systematic multi-phased initiative to significantly reduce costs and integrate our operations decreasing complexity and focusing on improved performance across our industrial portfolio in doing so we anticipated restructuring charge of approximately 24 million dollars with 17 million of the charge in 2022. Annualized cost savings are forecasted to be $14 million. This initial restructuring will be broad-based, touching much of our industrial portfolio. Within engineered components, we'll accelerate our move away from high volume, commoditized automotive business, focusing on market segments where our products and technology are recognized for the value they create for our customers. This does not mean an exit from automotive end markets, but rather a focus on where we can generate suitable returns. Accordingly, as the product lines offered by engineered components are consolidated, we will be closing our associated spring Bristol, Connecticut manufacturing plant. Workforce reductions will be part of these actions. This integration of our engineered component operations built upon the consolidation of our Detroit facility, which is already in progress. Within our automation operations, we will be closing automation centers in Russia, Korea, and Japan. Our employees in Korea and Japan are largely transferring to channel partners, so we benefit from a lower cost base that can still drive sales in these markets. Within our molding solutions business, we are transforming our go-to-market strategy to focus on key regional markets of the Americas, Europe, China, and Asia. This represents a significant shift in the current brand-based commercial strategy. While our powerful brands remain intact and integrate a focus on the varying needs of customers within individual geographies, will allow us to better tailor our expensive technology solutions to their specific needs, generating the growth we must see from molding solutions. Additionally, this integration will improve our cost structure by creating efficiencies and improve cost competitiveness. Across industrial, these actions and others are aimed at improving profitability and return on investment capital. In particular, we desire to grow margins beyond what we delivered before the onset of the pandemic. We'll leverage our products and capabilities to expand recurrent revenues across the portfolio. In addition, we will accelerate our growth ambitions in medical, automation, and electrification with a focus on less cyclical and more attractive end markets. In closing, I'm thrilled to lead Barnes into the future and look forward to creating value for all of our stakeholders. For our employees, we'll provide challenging development opportunities and promote engagement and empowerment, remain an employer of choice. For our customers, we'll offer reliable service delivery, high-quality products, and leading technologies to support their success. And for our shareholders, we'll work to extract the value potential embedded in our business with a focus on growth, profitability, and capital returns. We'll move with speed and agility, take decisive action, and re-accelerate the transformation of our business portfolio. Notwithstanding some current challenges, our future is bright, and I'm excited to get started. Now let me pass the call over to Julie for a discussion on the financial details and some end market call.