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The Timken Company (TKR) filed Quarterly Report for the period ended 2009-03-31.
Timken Company's activities are divided into two principal segments. The first is anti-friction bearings and the other is steel. Timken is a leading international manufacturer of highly engineered bearings alloy and specialty steels and components as well as related products and services. The company also produces custom-made steel products including precision steel components for automotive and industrial customers. The Timken Company has a market cap of $1.73 billion; its shares were traded at around $17.9 with a P/E ratio of 7.1 and P/S ratio of 0.3. The dividend yield of The Timken Company stocks is 4.1%. The Timken Company had an annual average earning growth of 2% over the past 10 years.
Highlight of Business Operations:
Gross profit margin decreased in the first quarter of 2009, compared to the first quarter of 2008, due to the impact of lower sales volume across most market sectors of approximately $115 million, lower steel surcharges of $80 million and higher manufacturing costs of approximately $100 million, partially offset by lower raw material costs of approximately $50 million, improved pricing and sales mix of approximately $70 million and lower logistics costs of approximately $25 million. The higher manufacturing costs were primarily driven by the Mobile Industries and Steel segments as a result of the underutilization of plant capacity. The lower raw material costs are primarily due to lower scrap steel costs as scrap steel and other raw material costs have fallen in 2009 from historically high levels in 2008.
In the first quarter of 2009, impairment and restructuring charges were $8.5 million for the Mobile Industries segment, $4.5 million for the Process Industries segment, $0.5 million for the Steel segment and $1.2 million for Corporate. Corporate represents corporate administrative expenses that are not allocated to any of the reportable segments. In the first quarter of 2008, impairment and restructuring charges were $2.4 million for the Mobile Industries segment, $0.2 million for the Process Industries segment and $0.3 million for the Steel segment. The following discussion explains the major impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts in the table above.
In March 2009, the Company announced the realignment of its organization to improve efficiency and reduce costs. The Company had targeted pretax savings of approximately $30 million to $40 million in annual selling and administrative costs. In light of the Company
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| 7016B KOYO | 80 | 125 | 22 |
| 7918C KOYO | 90 | 125 | 18 |