Timken sales fall by 13 percent
The Timken Company reported sales of $4.3 billion for 2013, a decrease of 13 percent from the prior year.
The decline reflects lower demand across most of the company's broad end markets. In addition, a $117 million decline in Steel segment raw material surcharges from the prior-year period further decreased revenues. The reduction in sales was partially offset by the benefit of acquisitions of $86 million in the company's Mobile Industries and Process Industries segments and from strength in the Steel segment's automotive end-market sector.
In 2013, the company generated net income of $262.7 million, or $2.74 per diluted share, compared with $495.5 million, or $5.07 per diluted share, a year ago.
"Although demand from many of our targeted market segments has been sluggish, we performed well despite low operating levels," said James W. Griffith, Timken president and chief executive officer. "Over the past few months, we have completed a number of initiatives to match our cost structure to the current demand and to improve our ability to grow. The company is well positioned as key markets begin to recover in both businesses even as we prepare for an anticipated mid-year separation of our steel business."
Timken posted sales of $1.1 billion in the fourth quarter of 2013, down 2 percent from the same period in 2012. The sales decrease primarily reflects lower demand from the industrial, mining, heavy-truck and light-vehicle end-market sectors.
For the fourth quarter, the company generated net income of $52.6 million, or 55 cents per diluted share. That compares with $75.3 million, or 78 cents, earned in the same period last year.
Timken expects 2014 sales to be up approximately 6 percent compared to 2013, driven by higher demand in industrial, off-highway, energy, defense and rail end-market sectors.
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