B Barnes Group, Inc.

Management Discussion

• The Company reported net sales of $330.7 million in the first quarter of 2020, a decrease of $46.0 million or 12.2%, from the first quarter of 2019. Organic sales decreased by $31.2 million, or 8.3%, including decreases of $28.6 at Industrial and $2.6 at Aerospace. The decrease at Industrial was driven by organic sales declines within several of the Industrial business units, due partially to continued softness in automotive end markets, reflecting global uncertainty, and potential changes in regulatory requirements related to personal care and packaging markets, partially offset by increased volumes within medical end markets. The Automation business experienced slight growth during the current period. Sales at Industrial during the first quarter of 2019 also included a $2.6 million commercial settlement attributed to a patent-related matter. The Company completed the sale of its Seeger business on February 1, 2020, reducing sales by $10.3 million during the first quarter of 2020 relative to the prior year period. The decrease at Aerospace was driven by a decline in sales within the original equipment manufacturing business ("OEM"), partially offset by sales growth within the aftermarket businesses. The decline in OEM sales was attributed to the 737 Max aircraft, following a suspension of production by Boeing. The strengthening of the U.S. dollar against foreign currencies decreased net sales within the Industrial segment by approximately $4.5 million.