Subscribe to RSS

Timken Delivers Strong 2012 Results

CANTON, Ohio, Jan. 24, 2013 /PRNewswire-FirstCall/ — The Timken Company (NYSE: TKR; www.timken.com) today reported sales of $5.0 billion for 2012, a decrease of 4 percent from the prior year. The decline reflects lower demand from the light vehicle, heavy truck, industrial machinery, and oil and gas sectors in the second half of the year. Lower surcharges and the impact of currency also contributed to the decrease in sales. The company benefited from improved pricing, the favorable impact of its Philadelphia Gear and Drives acquisitions, and strength in the company’s rail and aerospace and defense end markets.

— Fourth quarter earnings per share were $0.78 on sales of $1.1 billion;
— 2012 earnings per share were $5.07 on sales of $5.0 billion, including benefit from CDSOA receipts;
— Execution of strategic plan delivers strong operating results and free cash flow, providing for increased pension funding and share repurchases;
— Company expects 2013 to remain strong, with earnings per share of $3.75 to $4.05, reflecting second-half recovery.
Jan 24, 2013
7:30am

Timken 2012 results1

In 2012, the company generated net income of $495.5 million, or $5.07 per diluted share, compared with $454.3 million, or $4.59 per diluted share, a year ago. The increase in earnings reflects favorable pricing, lower material costs, LIFO income and acquisitions, partially offset by weaker sales volume, mix, material surcharges and manufacturing costs. The 2012 results also included two significant items, net of tax (reference Table 1): the benefit of Continued Dumping and Subsidy Offset Act (CDSOA) receipts in the amount of $68 million, or $0.69 per diluted share, and charges related to the announced closure of a bearing plant in Canada, totaling $28.1 million, or $0.28 per diluted share.

“Over the course of the year, we responded quickly and effectively to slowing demand across our end markets and maintained our focus on driving value for our customers and shareholders,” said James W. Griffith, Timken president and chief executive officer. “Our strategy of continuing to evolve in key markets and further diversifying our product portfolio with new products and additional repair services enabled us to achieve double-digit operating margins in all four segments, even in the face of lower volumes. Our diversification strategy was reinforced by the positive impact that the Drives and Philadelphia Gear acquisitions are having on our performance.

“The fundamental changes we’ve made to improve the structural performance in our business led to strong operating results and free cash flow generation,” said Griffith, “as well as a strengthened balance sheet. Our strategic plan continues to serve us well in the face of uncertainty in the global economy.”

Timken 2012 results2

During 2012, Timken:
* Raised the quarterly dividend by 15 percent to 23 cents per share, returning $89 million in capital to shareholders through quarterly dividends. This year marked 90 consecutive years of paying quarterly dividends dating back to the company’s listing on the NYSE in 1922;
* Announced an increased share repurchase program for up to 10 million of the company’s common shares through 2015 and purchased 2.5 million shares for a total of $112 million;
* Expanded its reach in emerging markets and broadened its product portfolio, extending the Timken® spherical bearing line and developing new crankshaft steels as well as incorporating Drives® chain and Philadelphia Gear® repair services into its offerings;
* Completed the acquisition of the assets of Wazee Companies, LLC, expanding Timken services into critical motor and generator services and uptower wind maintenance and repair;
* Broke ground on a $225 million expansion at its Faircrest Steel Plant in Canton, Ohio, which will provide large bar production capabilities unique in America as well as improve efficiency and increase capacity in a core area of its Timken® engineered steel product portfolio;
* Invested in a new intermediate tube finishing line and new in-line forge press to improve productivity and increase capacity in its steel operations. These two investments, which come on line in the first quarter, reinforce the company’s position of offering the broadest special bar quality (SBQ) steel capabilities in North America;
* Continued to align its manufacturing footprint with market needs, announcing the closure of its St. Thomas, Ontario, bearing plant and the consolidation of those operations into existing * U.S. facilities, and realigning its Tyger River plant in Union, S.C., to focus exclusively on large bore bearing products; and
* Appointed Christopher A. Coughlin and Richard G. Kyle as group presidents, in connection with the retirement of Salvatore J. Miraglia. Coughlin leads the Mobile and Process Industries segments and Kyle oversees the Aerospace and Steel segments.

Fourth-Quarter Results
Timken posted sales of $1.1 billion in the fourth quarter of 2012, down 15 percent from the same period in 2011. The sales decrease primarily reflects lower demand in the company’s light vehicle, heavy truck, mining and energy-related end market sectors, as well as lower surcharges. This decrease was partially offset by favorable pricing. From a geographic perspective, the decline also reflects lower demand in North America and Europe, partially offset by growth in Asia.
For the fourth quarter, the company generated net income of $75.3 million, or $0.78 per diluted share. That compares with $109.1 million, or $1.11 per diluted share, earned in the same period last year. The decrease in earnings was primarily the result of lower volume, mix, lower material surcharges and higher manufacturing costs, partially offset by favorable pricing, lower material costs, LIFO income and a lower tax rate.

Cash Flow and Balance Sheet
The company generated $626.1 million in cash from operating activities in 2012 with strong earnings and CDSOA receipts, partially offset by discretionary pension contributions. Excluding discretionary pension and VEBA trust contributions of $245 million, net of tax, and the benefit of CDSOA receipts, free cash flow (operating cash after capital expenditures and dividends) was $416.9 million. In addition, the company used $112 million of cash to purchase 2.5 million of its common shares.
The company improved its balance sheet and pension funding status in 2012. As of December 31, 2012, total debt was $479.0 million, or 17.6 percent of capital, and cash was $586.4 million, or $107.4 million in excess of total debt, compared with total debt of $515.1 million and net debt of $46.7 million at the end of 2011. Available liquidity at December 31, 2012, was $1.4 billion. Timken ended the year with an unfunded pension liability of $397.9 million, or a funded status of 89 percent, improved from $492.7 million, or 84 percent, a year ago.

Mobile Industries Segment Results
Mobile Industries’ 2012 sales were $1.7 billion, down 5 percent from $1.8 billion a year ago. The benefits of the Drives acquisition and the strength of rail markets were more than offset by lower light vehicle and heavy truck sales as well as currency.
Mobile Industries achieved EBIT of $208.1 million, or 12.4 percent of sales, for the year, down 21 percent from $261.8 million, or 14.8 percent of sales, earned in 2011. The decrease in EBIT was primarily driven by lower volume, higher manufacturing costs and charges of approximately $25.0 million related to previously announced plant closures, partially offset by favorable pricing.
In the fourth quarter, Mobile Industries’ sales were $361.1 million, down 14 percent relative to the same period a year ago primarily due to lower light vehicle, heavy truck and off-highway market demand. EBIT in the quarter was $34.7 million, or 9.6 percent of sales, compared with $48.8 million, or 11.6 percent of sales, for the same period a year ago. The decline in EBIT was due to lower volume, partially offset by favorable pricing.

Process Industries Segment Results
Sales for the Process Industries segment were $1.3 billion in 2012, an increase of 8 percent from $1.2 billion a year ago. The increase was primarily driven by acquisitions. End-market demand was essentially flat while the benefit of pricing was mostly offset by currency.
Process Industries generated EBIT of $274.9 million, or 20.5 percent of sales, up slightly from the prior year’s EBIT of $274.2 million, or 22 percent of sales. EBIT benefited from acquisitions and pricing, partially offset by manufacturing costs, mix and currency.
Process Industries’ fourth-quarter sales were $338.9 million, up 5 percent from the same period a year ago. The increase reflects higher volume and favorable pricing. EBIT in the quarter was $61.2 million, or 18.1 percent of sales, down 5 percent from the prior year’s fourth quarter EBIT of $64.6 million, or 20 percent of sales. The decrease in EBIT resulted from higher manufacturing and material costs, mix and currency, partially offset by increased volume, favorable pricing and lower selling and administrative costs.

Aerospace and Defense Segment Results
For the full year 2012, Aerospace and Defense recorded sales of $346.9 million, up 7 percent from $324.1 million in 2011. The increase reflects strong volume across most of the segment’s end markets, led by defense.
Aerospace EBIT was $36.3 million, or 10.5 percent of sales, up from $5.1 million, or 1.6 percent of sales, for the same period a year ago. The increase in EBIT was led by volume, price and lower manufacturing and selling and administrative costs. In addition, last year’s results were negatively impacted by approximately $6 million in warranty charges.
Aerospace and Defense sales for the fourth quarter were $84.4 million, up 6 percent from the same period a year ago. The increase reflects higher volume, led by the defense sector, as well as favorable pricing. EBIT for the fourth quarter was $10 million, or 11.8 percent of sales, compared with EBIT of $2.7 million, or 3.4 percent of sales, in the same period a year ago. The increase in EBIT was due to higher volume, pricing, lower manufacturing and selling and administrative costs.

Steel Segment Results
Sales for Steel, including inter-segment sales, were $1.7 billion in 2012, down 12 percent from $2 billion last year. The results reflect reduced shipments to the industrial and oil and gas market sectors and lower raw-material surcharges of approximately $165 million, partially offset by favorable pricing.
Steel segment EBIT for the year was $251.8 million, or 14.6 percent of sales, compared to $267.4 million, or 13.7 percent of sales, in the prior year. EBIT was impacted by lower volume, mix, surcharges and higher manufacturing costs, partially offset by pricing, LIFO income and lower material costs.
For the quarter, Steel segment sales were $316.4 million, down 32 percent from the same period last year. Raw-material surcharges decreased approximately $70 million from the same period a year ago as a result of lower volume and material costs. Lower shipments, primarily in the industrial and oil and gas market sectors, were partially offset by improved pricing.
EBIT for the fourth quarter of 2012 was $25.2 million, or 8 percent of sales, compared with $70.6 million, or 15.1 percent of sales, for the same period a year ago. The decline in EBIT was driven by lower volume, mix, material surcharges and higher manufacturing costs, partially offset by pricing, lower material costs and LIFO income.

Outlook
“We expect to deliver solid operating results in 2013 as we continue to take actions to reduce costs and drive efficiencies in response to the environment,” said Griffith. “Our outlook for the year reflects our expectation that we will continue to see inventory reduction by our customers in the first half of the year, and anticipate an improving economy in the second half with customer demand matching consumption.”

The company expects sales to be down around 5 percent compared to 2012, driven primarily by continued lower demand. Operating performance is expected to remain strong, with all four segments maintaining double-digit operating margins.

For the full year 2013, The Timken Company expects:
* Mobile Industries’ sales down 5 to 10 percent for the year due to the impact of lower customer demand driven by the company’s market strategy;
* Process Industries’ sales to be relatively flat, based on a second-half recovery in Asia and industrial distribution;
* Aerospace and Defense sales up 7 to 12 percent, due to increased demand in civil and defense as well as critical motion control end markets; and
* Steel sales down 7 to 12 percent, driven by lower oil and gas as well as industrial end-market demand and surcharges.
Timken projects 2013 annual earnings per diluted share to range from $3.75 to $4.05, which includes restructuring costs for previously announced plant closures totaling approximately $0.20.

The company expects to generate cash from operations of approximately $330 million in 2013. Free cash flow is projected to be a use of $120 million after making capital expenditures of about $360 million and paying about $90 million in dividends. Excluding discretionary pension and VEBA trust contributions of approximately $180 million, net of tax, the company forecasts free cash flow of approximately $60 million in 2013.

Conference Call Information
Timken will host a conference call today at 11:00 a.m. to review its financial results. Presentation materials will be available online in advance of the call for interested investors and securities analysts.

Conference Call:
Thursday, Jan. 24, 2013
11:00 a.m. Eastern Time

All Callers:
Live Dial-In: 800/967-0627 or 816/581-1736
(Call 10 minutes prior to be included.)
Conference ID: Timken Earnings Call
Replay Dial-In available through Feb. 7, 2013:
888/203-1112 or 719/457-0820
Replay Passcode: 2099713
Live Webcast:
www.timken.com/investors

About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com), a global industrial technology leader, applies its deep knowledge of materials, friction management and power transmission to improve the reliability and efficiency of industrial machinery and equipment all around the world. The company engineers, manufactures and markets mechanical components and high-performance steel. Timken® bearings, engineered steel bars and tubes—as well as transmissions, gearboxes, chain, related products and services—support diversified markets worldwide. With sales of $5.0 billion in 2012 and approximately 20,000 people operating from 30 countries, Timken makes the world more productive and keeps industry in motion.

 

source: Timken

0 commentsback to post

banner

Add your comment

Nickname:
E-mail:
Website:
Comment:

*

Other articlesgo to homepage

捷太格特(JTEKT)连续4年入选“全球百强创新企业”

捷太格特(JTEKT)连续4年入选“全球百强创新企业”(0)

科睿唯安(Clarivate Analytics)近日公布了“2018年全球百强创新企业、机构”榜单,捷太格特(JTEKT)连续4年入选该榜单。 “全球百强创新企业”是由科睿唯安(Clarivate Analytics)评选。基于其独自拥有的专利索引数据,通过对企业或机构进行知识产权和专利动向的分析,对全世界进行优秀研究开发活动和知识产权管理的企业和机构进行表彰。此次是自2011年起第8次发表该榜单,捷太格特自2015年起,已连续4年入选,其评选标准有以下4点。 1. 数量:  专利取得数量(近5年取得的数量) 2. 成功率:专利授权成功率 3. 全球性:在主要市场(欧洲、美国、中国、日本)的一般专利获得数 4. 影响力:授权的专利在其他企业、发明上的引用程度 捷太格特(JTEKT)因在以上4点中的“全球性”和“影响力”方面获得了高评分,最终入选该榜单。 今后,捷太格特将继续以“No.1 & Only One,迈向更美好的未来”为集团愿景,在汽车零部件、轴承、机床等各个事业领域,继续积极地推进新产品及新技术的研发。此外,还将继续积极致力于相关知识产权在全球市场的应用和保护。

NSK滚针轴承波兰分公司获得丰田汽车欧洲供应商奖

NSK滚针轴承波兰分公司获得丰田汽车欧洲供应商奖(0)

This article, press release or announcement is translated from BearingNEWS (www.bearing-news.com) publications or from China Bearing Commercial Community (CBCC) sources NSK滚针轴承波兰分公司荣获丰田汽车欧洲质量成就2017年度供应商奖。该奖项于3月27日在比利时布鲁塞尔的汽车世界老爷车博物馆举行的2018年丰田汽车欧洲年度商务会议上颁发。 每年,丰田汽车欧洲公司和欧洲供应商的高层管理人员都会回顾上个年度财政。 2017年度优质成就供应商奖是继2008年和2014年后,第三届丰田汽车欧洲奖颁发给NSK滚针轴承波兰分公司。 获奖的基础是许多KPI(关键绩效指标),包括PPM(百万分之一),许多OEM用它来衡量一百万个零件中产生的缺陷零件数量。保修索赔和索赔管理是进一步审查该奖项的关键绩效指标。 经过深入的评审过程,2017年的奖项授予了NSK 滚针轴承,与其他NSK制造工厂一起,自2005年以来一直向丰田汽车欧洲供应产品(主要是滚针轴承)。 NSK生产各种用于汽车应用的滚针轴承产品,包括用于发动机摇臂的产品。 NSK滚针轴承的低摩擦和高耐用性是摇臂的理想选择,摇臂必须利用凸轮的力来高效和可靠地打开和关闭发动机气门。 NSK的欧洲制造工厂还生产用于传动应用的保持器和滚针组件。由于没有内圈或外圈,这些产品的低横截面在一个小外壳内提供了最大的承载能力。经过适当润滑,由于采用独特的保持架,它们可以高速运转,提供精确的滚轮导向。 此外,保持架和滚针组件中的受控轮廓滚子具有最佳轮廓,可减小应力,允许在适度不对准的情况下操作并延长轴承寿命。

新GGB公司铁路手册:保持轨道,以改善铁路性能

新GGB公司铁路手册:保持轨道,以改善铁路性能(0)

今天的铁路在寻求更高的效率,可靠性和性能方面正在经历重大变化 – 作为可靠的摩擦学解决方案的专家,GGB可以提供帮助。 GGB发布了一本新手册,介绍了在设计早期与GGB合作的好处。 它还详述了依赖过时设计的后果,并提供了有关GGB合作伙伴关系优势的更多信息。  GGB产品在铁路应用中具有许多优势。 我们的自润滑,免维护轴承解决方案具有高负载能力,耐腐蚀和抗污染。 从制动器连接到耦合器到转向架,GGB提供了多种解决方案,可以经济高效地优化铁路性能。

铁姆肯公司将参加杰富瑞集团 2018年全球工业会议

铁姆肯公司将参加杰富瑞集团 2018年全球工业会议(0)

This article, press release or announcement is translated from BearingNEWS (www.bearing-news.com) publications or from China Bearing Commercial Community (CBCC) sources 铁姆肯公司是工程轴承和动力传动产品的全球领导者,今天宣布将参加2018年8月8日在纽约市举行的杰富瑞集团2018年全球工业会议。 代表铁姆肯公司的代表将是执行副总裁兼首席财务官Philip D. Fracassa,。 会议期间分享的材料将在http://investors.timken.com上在线提供。

SKF感受到中国EV动力的力量

SKF感受到中国EV动力的力量(0)

This article, press release or announcement is translated from BearingNEWS (www.bearing-news.com) publications or from China Bearing Commercial Community (CBCC) sources哥德堡——中国对瑞典斯凯孚(SKF)公司轴承的需求量日益增加。得益于人们对电动汽车需求量的增加以及供应商对快速变化的汽车技术的适应,斯凯孚目前每月拿下至少一笔新订单。 斯凯孚汽车业务总裁Bernd Stephan称,虽然欧洲电动汽车的销量也在增加,但中国电动汽车的销量正呈井喷式增长。“我们在这一领域获得了大量新业务……如此多的项目突如其来,我们在持续地与这些客户洽谈。”Stephan说。 电动汽车对轴承制造商的影响巨大,这是因为电动汽车通常使用的轴承数量约为内燃机汽车使用轴承数量的一半。在斯凯孚专注于轴承和密封件等零部件的同时,包括德国舍弗勒集团在内的竞争对手们正在开发完整的电驱动产品系列。由于斯凯孚只有4%的产品用于内燃机,而轮毂轴承是其销量最多的产品,斯凯孚在很大程度上受到了保护。“我们在内燃机汽车市场中失去的业务,正在电动汽车市场中赢回来。”Stephan表示。处于两者之间的更多混合动力车的出现,对我们也是有利的。 汽车轴承市场竞争日益激烈,客户对价格越来越敏感,再加上中国竞争对手的崛起,这些都使人愈加担忧斯凯孚的长期盈利能力。Stephan称,斯凯孚可以使用更经济的钢铁和不同的部件来降低非高端轴承的制造成本。“我们的生产率是很高,并且不只在欧洲生产轴承。” 斯凯孚汽车业务还与日本NTN、NSK和JTEKT公司以及中国人本集团等公司展开竞争,其销售额占到了斯凯孚2017年销售额的31%。 尽管汽车业务一直是集团担忧的问题,但2015年的重整计划已经开始发挥作用,在第一季度几乎实现了8%的利润目标。重整计划主要针对高度定制的轴承和密封件。 展望未来的完全无人驾驶汽车市场,Stephan认为这会带来更多变化,由于轮毂轴承使用强度增加,轮毂轴承可能需要有更长的使用寿命。“现在,人们还意识不到无人驾驶意味着什么。理论上说,车辆数量将降低到现在的三分之一。”Stephan还补充道,现在为此做好准备非常重要。 2016年,斯凯孚汽车产品销售额达到了18.4亿美元,名列《欧洲汽车新闻》全球前100名供应商名单第86名。  

read more

Contacts and information

Social networks

Most popular categories

Legal Notice

© 2016 BEARING NEWS All rights reserved.