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 third 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 would 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, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations.

You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. Bill Pitts, Vice President, Investor Relations. You may begin. of our corporate website at onebarnes.com. That's O-N-E-B-A-R-N-E-S.com. During our call, we will be referring to the earnings release supplement slides, which are also posted to 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 onebarnes.com. Let me now turn the call over to Tom for his opening remarks. Then Julie will provide a review of our third quarter performance and our updated outlook for 2022. After that, we'll open up the call for questions.

Thank you, Bill, and good morning to everyone. During my first full quarter at Barnes, I've traveled to our manufacturing facilities across Europe and North America. I'm impressed with the people, operating processes, and manufacturing expertise at Barnes. There's a highly engaged and passionate team of leaders and associates, and I appreciate the frank and clear discussions held with these team members during my visits. Barnes has a good business portfolio and a solid foundation upon which to build our future. That said, not all aspects of our core business execution are performing at the level needed, and we are taking actions to improve our execution to deliver the true value embedded in our businesses, in particular, in our commercial processes. To put it in simple terms, our focus is to drive revenue, improve profitability, and secure the backlog required to drive future growth. This top line, bottom line, pipeline triad, you'll hear me repeat often, is the guiding principle through which we will steer the company's revival. Our first step is to determine the most advantageous ways to address the markets we serve. Approaching our markets in a more holistic manner by leveraging the breadth of our portfolio to more efficiently and effectively serve our customers. This moves beyond cross-selling products to providing valuable solutions that solve customer problems. Doing so will allow Barnes to command price while creating incredible value for our customers. With our operations, there are significant opportunities to drive enterprise value. On the aerospace side, we have a well integrated and aligned business that approaches its global markets as Barnes Aerospace. It's a highly investable, solidly performing business with opportunities to scale through greater participation in the industry recovery and further expansion into military and MRO. Accordingly, we'll dedicate more resources to top-line growth and to evaluate M&A targets in this space with integration and alignment top of mind. At Industrial, our immediate priorities are different. The portfolio strategy has been built along decentralized and independent brands, and this has led to a high level of complexity. And while there are pockets of strength, the global pandemic has exposed inefficiencies and gaps in our effectiveness. So at this time, we are pausing M&A activity until we more fully integrate, consolidate, and rationalize the business within this segment. This includes an evaluation of industrial architecture with a view on simplifying and streamlining the business. To that end, we have advanced our restructuring efforts. Since our second quarter earnings call, the closure of our Bristol facility announced on our July's call is tracking to plan. We have commenced the closure of our molding solutions facility in Switzerland, which will be completed by June 2023. We have undertaken headcount reductions in Canada, Sweden, Spain, and Germany, and we have closed several smaller locations. In addition, in October, we approved the second round of our multi-phase restructuring, which will drive $12 million in annual savings at a cost of $5 million. Collectively, with what we announced in July, we anticipate approximately $26 million of annual savings with a total restructuring cost of $29 million. We expect to achieve full run rate savings by 2024. Plans for additional restructuring actions are in development and will be shared in due course. With all of the above, we will approach the work at hand with a refreshed organization culture built on candor, clarity, and action. While respectful of the existing company culture, we are moving with greater agility and urgency. We are focused on getting things done. We are more analytically driven, letting data support our decision-making processes. And we are driving a pay-for-performance mindset deeper into the organization. This increase in speed and directness is uncomfortable for some, but we have a lot to do, and we're getting after it. Before I close my prepared remarks, you may have seen in our AK this morning that Patrick Dempsey has voluntarily retired from his role as Executive Vice Chairman and that he has also voluntarily resigned as a member of the Barnes Board of Directors for personal reasons related to the health matters affecting a family member. We are incredibly grateful for Patrick's leadership and contributions to Barnes over his 22 years at the company. Personally, I would like to thank Patrick for his support in my transition to the CEO position. I truly appreciate his advice and counsel. From the entire Barnes team, we wish Patrick and his family well in this next phase of life. In closing, I'm incredibly energized by the future I see ahead at Barnes. The leadership team and I are rapidly working to deploy actions designed to accelerate our financial performance recovery, drive core business improvement, align our commercial resources, and address industrial complexity and inefficiency. These actions will work towards unlocking our full potential, delivering the top line growth, bottom line returns, and steady orders flow that Barnes is capable of. Let me now pass the call over to Julie for a discussion on our third quarter performance and some end market color.