Barnes To Close Production Operations At Associated Spring Facility, Saline

(RTTNews) - The Bristol, Connecticut-based Barnes Group Inc. (B), an industrial and aerospace manufacturer and service provider, announced the planned closure of production operations at its Associated Spring facility in Saline, Michigan. The company expects the closure to be completed mid-year 2014.

The Saline production operations, which include approximately 50 employees, primarily manufacture certain automotive engine valve springs, a highly commoditized product.

Barnes noted that, based on changing market dynamics and increased customer demands for commodity pricing, several customers advised intention to transition these specific springs to other suppliers, which led to the decision to close production operations in Saline.

The company estimates 2014 pretax charges associated with this closure to be about $8 million, with about half to be recorded in the first quarter. Of this total amount, approximately $3 million relates to employee termination costs, primarily severance and pension costs. The balance relates to other costs associated with the closure of the production operations. Further, approximately $6 million of the $8 million in pretax charges is expected to result in future cash expenditures.

The company plans to update its 2014 full-year outlook during the next quarterly earnings call, which is anticipated to take place in late April 2014.

B closed the Friday's trading session at $38.44.