Timken Co. posted first quarter profits of $155.7 million on sales of $1.42 billion. Both figures are records, the company announced after markets closed on Tuesday.
A strong first quarter has brightened Timken Co.’s outlook for the coming year.
Late Tuesday, Timken reported a first quarter record income of $155.7 million on record sales of $1.42 billion.
Sales rose 13 percent compared with $1.25 billion reported in the 2011 first quarter. The company said the gains reflect stronger demand across most of its end markets, better pricing and the impact of acquisitions.
Revenue jumped 38 percent compared with $112.7 million reported last year. That translated into an earnings of $1.58 per share compared with $1.13 per share last year. Improved pricing, demand and mix, plus the impact of acquisitions helped earnings, although results were offset by higher selling and administrative costs, the company reported.
“Our record performance, as well as our confidence in our improved full-year earnings outlook, stand as further testimony to the company’s ability to execute at a structurally higher level of performance,” James W. Griffith, Timken president and chief executive officer, said in a news release.
Sales growth now is projected at 10 percent for the coming year, up from a projected gain of 7 percent. Timken projects earnings will range from $6.10 to $6.40 per diluted share.
Timken is “operating very well” worldwide, Griffith said, leveraging momentum in target markets, and finding new customers through expanding products and services.
All of the company’s business segments saw increased revenue and profits.
Steel led the way with sales of $535.5 million, an 11 percent gain over $481.5 million last year. Mobile industries segment sales climbed 6 percent to $469.1 million from $443 million in 2011. Aerospace and defense sales rose 15 percent to $91.3 million compared with $79.1 million last year.
Process industries sales rose to $355.6 million, a 25-percent gain from last year. The addition of Drives and Philadelphia Gear helped sales, as did stronger industrial distribution demand and pricing.
The strong earnings report came after the market closed. Timken stock rose during the day Tuesday to close at $51.12, up $1.55 per share, but the price climbed in after hours trading to $53.80 per share at 6 p.m.