The Suburbanite
  • Timken earnings decline in first quarter

  • Lower demand cut into Timken’s first quarter earnings and revenue. But the company expects to see improvements as the year progresses.

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  • Lower customer demand cut into Timken’s first quarter earnings and revenue, the company reported Wednesday.
    The company posted net income of $75.1 million, or 77 cents per share, but that was half of the $155.7 million, or $1.58 per share, reported in the 2012 first quarter. Sales dropped 23 percent to $1.09 billion compared with $1.42 billion last year.
    The company said lower earnings came because of lower demand for products and higher manufacturing costs. The declines were partially offset by improved pricing and lower selling and administrative expenses.
    James W. Griffith, Timken president and chief executive officer, said first quarter results were in line with expectations and reflect difficult comparisons with last year’s record setting first quarter.
    “Our integrated business model, along with our continued focus on driving efficiencies across our business, enabled us to sustain double-digit operating margins while the company experienced low levels of capacity utilization,” Griffith said in a statement. “We saw orders increase as the quarter unfolded, and we remain confident in our ability to drive improved profitability throughout the remainder of the year.”
    Timken reaffirmed its opinion that the year will end with improved demand during the second half of the year. Sales are expected to decline about 5 percent compared with 2012, while operating performance is expected to remain strong with all four business segments maintaining double-digit operating margins.
    For the full press release on Timken’s first quarter earnings: news.timken.com/

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