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a.Timken's 3Q earnings more than double 3Q 2004
CANTON, Ohio (AP) - The Timken Co., a maker of engineered bearings and alloy and specialty steel products, said Wednesday its third-quarter earnings more than doubled over the same period in 2004, helped by strong sales in industrial and steel sectors.
In the third quarter completed Sept. 30, Timken earned $39.8 million, or 43 cents per share, on record third-quarter sales of $1.3 billion, up from third-quarter 2004 earnings of $17.5 million, or 19 cents per share, on sales of $1.1 billion.
For the first nine months of the year, Timken earned $165 million, or $1.79 per share, on sales of $3.9 billion, up from nine-month 2004 earnings of $71.3 million, or 79 cents per share, on sales of $3.3 billion.
Excluding special items, earnings for the quarter were 58 cents per share, beating the 55-cent estimate of analysts surveyed by Thomson Financial.
Industrial group sales grew 13 percent to $468 million and steel group sales rose 20 percent to $427.9 million.
Automotive group sales increased 10 percent. In July, Timken said it had planned to cut up to 500 jobs in its automotive group due to a slowdown in light vehicle production in North America and higher raw material costs.
On Sept. 21, Timken announced plans to close its Clinton, S.C., plant and phase out production there over the next two years.
James W. Griffith, president and chief executive, said even though Timken had strong showings in its industrial and steel groups, its automotive group performance remained a concern.
"We are focusing our growth initiatives to take advantage of the strong industrial demand," he said. "In our automotive operations, we began our restructuring program to reduce fixed costs and improve performance as we deal with the difficult environment in the North American automotive industry."
Timken shares closed up 64 cents, or 2.4 percent, to $27.43 Wednesday on the New York Stock Exchange. The stock has traded in a range of $22.73 to $30.06 in the past 52 weeks.
b. Timken 3Q Profit More Than Doubles
CANTON, Ohio (AP) - Timken Co., a maker of bearings used in products ranging from computers to cars, on Wednesday said third-quarter profit more than doubled as strength from its global industrial business offset troubles at its automotive division. The company also raised its earnings guidance for the full year.
Quarterly profit rose to $39.8 million, or 43 cents per share, compared with $17.5 million, or 19 cents per share, last year. Excluding items, mainly for restructuring its automotive operations, Timken reported earnings of 58 cents per share.
Sales rose 15 percent to $1.26 billion from the year-ago period's $1.1 billion. The results topped Wall Street projections for earnings of 55 cents per share on revenue of $1.24 billion, according to analysts polled by Thomson Financial.
Timken's industrial group powered overall results during the quarter, posting a 13 percent sales gain to $468.2 million from $414 million last year.
Chief Executive James Griffith said the company's automotive group "continued to be challenged" during the quarter. The business has been hurt by sluggish automobile sales during the year, which has curbed revenue growth.
Sales at the automotive group rose 10 percent to $408 million from $370.9 million. The increase in sales was due to improved pricing and growth in heavy truck volumes, although results were hurt by currency and the impact of Delphi Corp.'s Chapter 11 filing, the company said.
During the third quarter, Timken announced a massive restructuring of the troubled group, including the shuttering of plants, job cuts, and relocation of engineering resources. The company said additional announcements are expected in the coming months as it hopes to deliver annual pretax savings of about $40 million, with roughly $80 million to $90 million in costs over two years.
The company said it expects the automotive group to return to profitability in the fourth quarter.
Looking ahead, Timken said demand from oil, mining and gas markets will increase 2005 earnings to a range of $2.55 to $2.65, before special items. This is up from its previous range of $2.40 to $2.55 per share. Wall Street projects earnings of $2.58 per share.
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