Timken Company reports third-quarter profit
Resource from: Suburbanite Likes:189
Oct 30,2015
Timken Co. will continue cost-cutting efforts after -posting a third quarter profit on sales that are lower than last year.
Cost cutting efforts will continue at Timken Co. as the bearings maker tries to improve margins and maintain strong cash flow.
The company said it is trying to leverage its global capability and shift production to lower-cost facilities. It also will reduce jobs in manufacturing facilities and continue efforts to improve selling, general and administration expenses.
The moves are a reaction to lower sales. Timken and other manufacturers with extensive international business have seen sales drop because of the stronger U.S. dollar and falling oil prices. A stronger dollar hurts when products are sold in foreign markets. When the sale is converted from the foreign currency to dollars, the value declines.
Along with the currency squeeze, Timken is seeing customers reduce inventory and purchases. The trend began earlier this year and there are indications it will continue into 2016, Richard G. Kyle, Timken president and chief executive officer, told analysts during a conference call Wednesday.
“There’s a definite trending down,” Kyle said of orders, but he added there are some bright spots and good things happening.
CONTINUED SOFTENING
Based on third quarter results, Timken has revised its outlook and said it expects continued softening in several industrial markets. Revenue could fall about 8 percent year-over-year, which includes 5 percent because of currency issues.
Sales in the mobile industries segment are expected to slip 8 percent, but they would be down only 3 percent if not for the currency issue.
The drop in mobile industries reflects lower shipments in off-highway and aerospace market. The drop will be partially offset by growth in automotive and rail, and the benefit of acquisitions.
Process industries sales also are expected to drop about 8 percent, although the decline would be 3 percent without the impact of currency. Growth in wind energy and military marine markets, as well as benefits from acquisitions are offset by weaker demand from heavy industry and industrial aftermarket.
The company projects earnings per share will range between 65 cents and 70 cents. Adjusted earnings per share — excluding unusual items — should range from $2.05 to $2.10.
QUARTERLY NUMBERS
Timken posted lower sales for the third quarter that ended Sept. 30 while reporting a profit.
Net income from continuing operations was $63.4 million, or 75 cents per share, compared with a loss of $10.9 million, or 12 cents per share a year ago. The third quarter of 2014 included a $118 million pre-tax charge related to the restructuring of the company’s aerospace business.
This year’s profit came on sales of $707.4 million, down 10 percent from $788 million reported in the 2014 third quarter.
Meanwhile adjusted net income from continuing operations slipped to $47.7 million, or 55 cents per share, compared with $70 million on 77 cents per share, a year ago.
(Suburbanite)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
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