News Column

Timken earnings drop but beat analyst estimates; shares rise

January 30, 2014

By Jim Mackinnon, The Akron Beacon Journal

Jan. 30 --Canton bearings and steelmaker Timken Co. released fourth-quarter and full-year 2013 financial results Thursday, saying it expects to earn $3.15 to $3.45 per share in 2014. Sales and net income were down for the fourth quarter compared to a year ago and full-year results were down from fiscal 2012 as well. Full-year 2014 earnings are expected to account for the proposed spinoff of the company's steel business as of July 1 ; cost-reduction initiatives; and a 30 cents per share gain by selling land in Brazil . Timken said it had net income of $52.6 million , or 55 cents per share, on sales of $1.1 billion for the fourth quarter. Net income dropped 30.1 percent from $75.3 million , or 78 cents per share, a year ago. Revenue was down 2 percent from the fourth quarter of 2012. Excluding one-time items, Timken said it had fourth-quarter net income of $73.5 million or 78 cents per share, down from a comparable $77.9 million , or 80 cents per share a year ago. Sales fell largely because of lower demand in North America from industrial, mining, heavy-truck and light-vehicle market sectors, the company said. Timken's fourth-quarter results beat analyst expectations. Shares were up $1.85 , or 3.2 percent, to $56.38 as of 11:25 a.m. For the full year, Timken reported earning $262.7 million , or $2.74 a share, on sales of $4.3 billion for 2013. Net income was down 47 percent from $495.5 million or 5.07 a share in 2012. Excluding one-time items, Timken said it had full-year net income of $295.5 million , or $3.09 per share. Net income was down 36.4 percent from a comparable $464.6 million , or $4.76 per share, a year ago. Sales were down 13 percent from fiscal 2012, largely reflecting lower demand across most of the company's broad end markets, Timken said. For 2014, Timken said it expects to generate cash from operations of approximately $560 million , with free cash flow projected to be $165 million . Timken said it expects to pay about $85 million this year in dividends. Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com ___ (c)2014 the Akron Beacon Journal (Akron, Ohio) Visit the Akron Beacon Journal (Akron, Ohio) at www.ohio.com Distributed by MCT Information Services


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Source: Akron Beacon Journal (OH)


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