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The Timken Company – Successfully repositioned the company

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The Timken Company (NYSE: TKR) reported record sales of $5.2 billion for 2011, up 28 percent from the prior year on strong demand from diverse industrial markets. The increase primarily reflects growth from the energy, heavy truck, mining, rail and industrial distribution sectors, as well as favorable pricing, material surcharges and acquisitions.

In 2011, the company generated $454.3 million in income from continuing operations, net of non-controlling interest, or $4.59 per diluted share, up 65 percent from $274.8 million, or $2.73 per diluted share, a year ago. Higher volume, favorable mix, surcharges and pricing drove the improvement, more than offsetting increased raw material and administrative costs.

“Our financial results tell the story of a transformed Timken Company,” said James W. Griffith, Timken president and chief executive officer.  “We’ve successfully repositioned the company, focusing our efforts on those industries and applications where we bring significant value and can make a difference in our customers’ performance. As a result of this and our improved operating model, we have increased our earning power, serving Timken customers across a multitude of high-performance applications in industrial markets.”


Among developments announced in 2011, Timken:

  • Completed two acquisitions further diversifying its portfolio, including  Philadelphia Gear for $200 million in July and Drives for $92 million in October;
  • Launched initiatives to further enhance productivity and serve growth in its Steel business, including a new $35 million in-line forge press at the company’s Faircrest plant in Canton;
  • Continued to expand bearing capacity, with approximately $50 million invested in 2011 to serve global growth in attractive industrial markets;
  • Returned capital to shareholders, increasing quarterly dividends 11 percent to 20 cents per share, and repurchasing 1 million shares of company stock;
  • Entered into an amended and restated $500 million unsecured senior credit facility that matures in May 2016;
  • Contributed approximately $400 million to the company’s pension and post-retirement benefit plans; and
  • Began collaborating with The University of Akron to establish a new laboratory focused on surface-engineering technologies, and formed a new alliance with Stark State College to construct a large bearing test center in Canton.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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