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The eBearing News
October 26, 2005
Timken Reports Third Quarter 2005 Results
copyright © 2005 eBearing Inc.
The Timken Company (USA; NYSE:
TKR)
reported results for fiscal third quarter 2005, ended September 30.
Sales hit a record USD $1.3 billion, up 15% from 2004's $1.1 billion.
Net income reached $39.8 million, more than doubling 2004's $17.5 million.
Jim Griffith, President and CEO, said: "We delivered strong performance this quarter as we continued
to capitalize on the ongoing strength of global industrial markets."
Mr. Griffith went on to note the well-known weakness plaguing all North American auto industry
suppliers: "While we had record third quarter
results in the Industrial and Steel Groups, our Automotive Group performance continued to be challenged."
As the fourth quarter begins, Timken will continue to take advantage of strong markets where it can: "We
are focusing our growth initiatives to take advantage of the strong industrial demand. We have continued
to add industrial bearing capacity around the world and invest in acquisitions in key markets to complement
organic growth. The record performance in our steel business reflects leveraging strong demand in industries
such as aerospace and energy."
Industrial Group
Sales were $468.2 million, up 13% from 2004's $414.0 million.
Timken said industrial sales were up across the board in all sectors, but particularly
strong in distribution and rail.
The Industrial Group brought expanded spherical bearing production online in Wuxi, China this quarter.
Mr. Griffith recently completed a trip to China during which he inaugurated the facility.
Automotive Group
Sales were $406.0 million, up 10% from 2004's $370.9 million.
Virtually all of the sales increase was due to strong volume growth in the heavy truck
sector, helped out by price increases the company has been working into supply agreements
as they mature.
Timken said the Automotive Group has made progress, with improved pricing offsetting
higher raw materials costs in the quarter.
However, Automotive was impacted by Delphi's bankruptcy filing, foreign exchange currency effects,
and generally that, "the automotive industry is clearly facing a challenge and is in transition."
When Delphi filed Chapter 11 bankruptcy, it effectively froze payment on just over $3.6 million
owed to Timken, which will stay with the Automotive Group.
In addition to Automotive Group's previously announced restructuring plans, Timken said additional
announcements should be expected in the coming months.
Steel Group
Sales in the quarter were $427.9 million, up 20% over 2004's $355.3 million.
The strengthening demand was attributed to across-the-board industrial, aerospace and energy
market segment strength, as well as the widening impact of price increases and raw material
cost surcharges.
Normal fourth-quarter seasonality is expected to hamper upcoming results.
Looking forward, Timken said the rest of the year should continue to benefit from strong
industrial markets, while the Automotive Group's efforts will continue to drive improvement there.
Organic sales growth is also expected from a drive to increase market penetration. Mr. Griffith
said, "We expect to continue benefiting from our participation in diverse industrial markets. In
particular, increased activity in mining, oil and gas and other energy-related markets should result
in additional demand for our products."
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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Entire contents Copyright 1999-2009, eBearing Inc. All rights reserved.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2009, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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