Timken sales decline 16%
The Timken Company reported sales of $1.1 billion for the second quarter of 2013, a decrease of 16 percent from the prior year.
The decline primarily reflects lower off-highway, industrial distribution, and oil and gas demand as well as the impact of the company's market strategy in the light-vehicle sector, partially offset by the benefit of acquisitions. In addition, sales reflect a $49 million decline in raw material surcharges from the prior-year quarter.
Timken generated net income in the quarter of $82.8 million, or 86 cents per diluted share. This compared with $183.6 million, or $1.86, during the same period a year ago.
"We continue to perform very well, maintaining double-digit operating margins despite weak demand lingering in many global markets," said James W. Griffith, Timken president and chief executive officer. "Although our outlook for the year now reflects a more modest market recovery in the second half, we continue to expect strong financial performance for the remainder of the year."
Timken posted sales of $2.2 billion in the first half of 2013, down 20 percent from the same period in 2012.
The company recently expanded its industrial services capabilities through the acquisition of the Standard Machine business, which provides new gearboxes, gearbox service and repair, and field technical services in Canada and the western United States.
INDUSTRIAL SUPPLY MAGAZINE
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