Timken sales fall 23%
The Timken Company reported sales of $1.1 billion for the first quarter of 2013, a decrease of 23 percent from the prior-year quarter.
The decline reflects lower demand across most of the company's end markets led by oil and gas, industrial distribution and off-highway market sectors. In addition, steel surcharges declined $72 million from the prior-year quarter.
Timken generated income in the first quarter of $75.1 million, or 77 cents per diluted share, compared with $155.7 million, or $1.58, during the same period a year ago.
"First quarter results were in line with our expectations, reflecting difficult comparisons from record first quarter 2012 results," said James W. Griffith, Timken president and chief executive officer. "Our integrated business model, along with our continued focus on driving efficiencies across our business, enabled us to sustain double-digit operating margins while the company experienced low levels of capacity utilization.
Among recent developments, the company:
- Announced the completion of three previously disclosed capital investment projects totaling $85 million that increase capacity and manufacturing effectiveness in its Steel segment. The investments include an open-die in-line forge press, an intermediate finishing line and a second induction thermal treatment line at steel facilities in Canton, Ohio;
- Expanded its service and product offering across key end markets through two acquisitions: Smith Services Inc., a provider of electric motor rewind and repair, and Interlube Systems Ltd., a U.K.-based provider of automated lubrication delivery systems and services;
- Entered into a strategic asset purchase agreement with The Greenbrier Companies Inc., expanding the Mobile Industries' rail bearing reconditioning activities
INDUSTRIAL SUPPLY MAGAZINE
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