Feb. 5, 2014
Timken Profits Show Decline
The Timken Company, Canton, Ohio, reported net income of $262.7 million in 2013, well behind the $495.5 million reported the previous year. Net sales also declined 13 percent to $4.3 billion.
Timken officials said a $117 million decline in Steel segment raw material surcharges from the prior year decreased revenues. The reduction in sales was partially offset by 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.
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 markets. This decrease was partially offset by improved demand in the energy, rail, aerospace-related defense and light-vehicle sectors. For the fourth quarter, the company generated net income of $52.6 million, down from the $75.3 million earned in the same period last year.
In the company's steel segment, which will be spun off into a separate company later this year, sales declined 20 percent to $1.4 billion in 2013. The decline reflected reduced shipments to the industrial and oil and gas segments, offset somewhat by improved demand in the mobile on-highway end market. For the quarter, Steel segment sales totaled $330.1 million, up 4 percent from the same period last year.
Timken forecasts its 2014 sales overall will improve by 6 percent over 2013, driven by higher demand in industrial, off-highway, energy, defense and rail end-market sectors. In the Steel segment, sales are expected to increase 12-17 percent due to improved demand in the oil and gas and industrial sectors.