The Torrington Company (USA), a division of Ingersoll-Rand (I-R; Bermuda) received a USD $68 million payout under the Continued Dumping and Subsidy Offset Act for fiscal 2002. The payout was up 36% from 2001, the first year of the program, when the company received $50 million.

Torrington, in the process of being acquired by Timken, was founded in 1866. It is a broad line bearing manufacturer under the Torrington, Fafnir and Kilian brands. Products range from 1/8" needle roller bearings to 160" diameter heavy-duty roller bearings.

Controversial from its inception, Continued Dumping and Subsidy Offset Act (CDSOA), was passed on October 28, 2000. Added by Senator Robert Byrd as a rider to the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriation Act, it passed without discussion. The legislation, from Ohio's Senator Mike DeWine, had previously failed to gather support due to questions about its legality under World Trade Organization and NAFTA trade rules. Now the Act is usually referred to as the "Byrd Amendment" or CDSOA.

Antidumping duties are imposed on imported merchandise that the U.S. Department of Commerce finds is sold in the U.S. at less than its fair market value. Countervailing and dumping duties are imposed if the imported goods cause material injury to a domestic industry. Products subject to the duties range from flat rolled steel to mushrooms to sparklers to bearings.

Essentially, the CDSOA modifies the Tariff Act of 1930 and instructs Customs to put all antidumping tariffs collected into special accounts. Previously, that money had gone directly into the general Treasury. Then, each year, the money collected is to be handed out directly to the U.S. companies who successfully participated in antidumping complaints.

In 2001, approximately 900 payments, totaling $230 million, were made under the CDSOA. In late 2002, over 1,200 payments were made, amounting to over $329 million -- up 43%. U.S. Customs blames the 2002 delay on that jump in claimants and payments; normally, checks are to be written around the beginning of November.

The other bearing manufacturer to collect under CDSOA was Timken, receiving $54 million in 2002, up 75% from its $31 million payout in 2001.
• article: Timken 2002 CDSOA payout




• article: the Torrington acquisition

In 2002's fourth quarter, Torrington reported GAAP Net Income of $56.7 million (including the $68 million CDSOA payout), against net income of $34.9 million (including the $50 million CDSOA payout) in fourth quarter 2001.

For all of 2002, Torrington's sales were $1.2 billion, with Net Income reaching $93.6 million. 2001 sales were $1.08 billion, with Net Income of $64.2 million. 2000 sales were essentially the same as 2002, but in 2000 the company reported Net Income of $160 million.