• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • Sponsored Placement
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Sponsored Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

Timken Reports First-Quarter Results, Updates 2015 Outlook

- Sales down 2 percent in the first quarter; up 3 percent excluding currency

- Adjusted earnings of $0.50 per diluted share (EPS), flat with last year

- Repurchased 2.3 million shares during the quarter

- Completed the previously announced pension annuitization

- Now expects full-year 2015 adjusted EPS in the range of $2.30 to $2.40

The Timken Company Logo.

News provided by

The Timken Company

Apr 30, 2015, 07:26 ET

Share this article

Share this article


NORTH CANTON, Ohio, April 30, 2015 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global leader in bearings, today reported sales of $723 million for the first quarter of 2015, down 2 percent from a year ago. This reflects growth of nearly 3 percent, driven by Process Industries, which was more than offset by unfavorable currency of almost 5 percent.

Pension settlement and other restructuring charges in the first quarter drove a net loss from continuing operations of $135.2 million or $1.54 per share. This compares with net income from continuing operations during the same period a year ago of $60 million or $0.64 per diluted share. As previously disclosed, earlier this year the company transferred approximately $575 million of retiree pension obligations to Prudential through the purchase of a group annuity contract, which resulted in a non-cash charge of $215 million pre-tax in the first quarter.

Adjusted net income from continuing operations in the first quarter was $44.2 million or $0.50 per diluted share. This compares with $47 million or $0.50 per diluted share (reference Table) for the same period a year ago. Adjusted net income reflects the impact of negative currency and unfavorable mix, partially offset by the benefit of higher volume, lower selling, general and administrative (SG&A) expenses and a lower tax rate. Earnings per share benefited from the company's share buyback program, including 2.3 million shares repurchased in the first quarter.

"Although the year started off softer than expected, we were successful in achieving 3 percent sales growth before currency and delivered adjusted earnings in line with last year," said Richard G. Kyle, Timken president and chief executive officer. "We continue to outgrow markets in Process Industries, achieving 9 percent growth in the quarter excluding currency. We also continue to improve our cost structure and return significant capital to shareholders.

"While we have tempered our full-year outlook to reflect the full impact of the strong dollar and a more cautious outlook on the end markets," Kyle said, "we remain confident in our long-term ability to grow our business profitably and create value for our customers and shareholders."    

Adjusted Net Income and Diluted Earnings Per Share (EPS) from Continuing Operations


2015 – 1Q


2014 – 1Q


($ in Mils.)

EPS


($ in Mils.)

EPS







Net (Loss) Income from Continuing Operations

$ (135.2)

$(1.54)


$ 60.0

$ 0.64

Adjustments:






Pension settlement charges

$ 215.2

$2.45


$  0.7

$ 0.01

Impairment and restructuring charges

6.6

0.07


4.2

0.05

Gain on sale of real estate in Brazil

--

--


(22.6)

(0.24)

(Benefit) provision for income taxes

(42.4)

(0.48)


4.7

0.05

      Total adjustments

179.4

2.04


(13.0)

(0.14)

Net Income, after adjustments

$  44.2

$ 0.50


$ 47.0

$ 0.50

First-Quarter Segment Results

Mobile Industries reported first-quarter sales of $393 million, down approximately 7 percent from the same period a year ago, with 4.5 percent attributable to currency. The remainder was largely due to declines in aerospace, agriculture and the automotive aftermarket, partially offset by growth in the rail sector. Earnings before interest and taxes (EBIT) for the first quarter were $35.4 million or 9 percent of sales, compared with prior-year EBIT of $64.3 million or 15.2 percent of sales, which included a gain on the sale of real estate in Brazil. Adjusted EBIT was $36.4 million or 9.3 percent of sales, compared with $45.3 million or 10.7 percent of sales in the first quarter last year. The decline in earnings was driven by lower volume, unfavorable mix and currency, partially offset by lower SG&A expenses.

Process Industries sales of $329.5 million for the first quarter were up approximately 5 percent over the same period last year despite a currency impact of 4 percent. Sales were driven by strong organic growth in the wind energy and military marine sectors as well as the benefit of acquisitions, partially offset by currency. EBIT for the quarter was $45.2 million or 13.7 percent of sales, compared with prior-year EBIT of $48.2 million or 15.3 percent of sales. Adjusted EBIT was $50.8 million or 15.4 percent of sales, compared with $49.3 million or 15.6 percent of sales in the first quarter last year. The increase in earnings was driven by higher volume, partially offset by unfavorable mix and currency.

2015 Outlook

For 2015, the company expects year-over-year revenue to be down approximately 4 percent, with negative currency of 5 percent more than offsetting expected growth of 1 percent. The segment outlook for full-year 2015:

  • Mobile Industries' sales are expected to be down 5 to 6 percent. Without the impact of currency, sales are expected to be flat to down 1 percent reflecting organic growth in light vehicle and rail being more than offset by declines in aerospace and agriculture.
  • Process Industries' sales are expected to be down 2 to 3 percent. Excluding currency, sales are expected to increase 2 to 3 percent driven by organic growth in wind energy, industrial services and the benefit of acquisitions.

Timken projects 2015 earnings per diluted share to range from $0.60 to $0.70, which includes $1.75 of non-cash pension settlement charges and $0.20 per share of impairment and other restructuring charges, partially offset by $0.25 of income associated with discrete tax accrual adjustments.

Excluding these items, 2015 adjusted earnings per diluted share are expected to range from $2.30 to $2.40.

Conference Call Information

Timken will host a conference call today at 11:00 a.m. Eastern Time to review its financial results. Presentation materials will be available online in advance of the call for interested investors and securities analysts.

Conference Call:

Thursday, April 30, 2015


11:00 a.m. Eastern Time


Live Dial-In: 888-778-9065 or 913-312-1503



(Call in 10 minutes prior to be included.)


Conference ID: Timken Earnings Call


Live Webcast:  www.timken.com/investors



Conference Call Replay: 

Replay Dial-In available through May 14, 2015:


888-203-1112 or 719-457-0820


Replay Passcode: 7158396

About The Timken Company

The Timken Company (NYSE: TKR; www.timken.com) engineers, manufactures and markets bearings, transmissions, gearboxes, chain and related products, and offers a spectrum of powertrain rebuild and repair services. The leading authority on tapered roller bearings, Timken today applies its deep knowledge of metallurgy, tribology and mechanical power transmission across a variety of bearings and related systems to improve reliability and efficiency of machinery and equipment all around the world. The company's growing product and services portfolio features many strong industrial brands including Timken®, Fafnir®, Philadelphia Gear®, Drives®  and Interlube. Known for its quality products and collaborative technical sales model, Timken posted $3.1 billion in sales in 2014. With approximately 16,000 people operating from 28 countries, Timken makes the world more productive and keeps industry in motion.

Certain statements in this release (including statements regarding the company's forecasts, estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the company's future financial performance, including information under the heading "Outlook," are forward-looking. The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the finalization of the company's financial statements for the first quarter of 2015; the company's ability to respond to the changes in its end markets that could affect demand for the company's products; unanticipated changes in business relationships with customers or their purchases from the company; changes in the financial health of the company's customers, which may have an impact on the company's revenues, earnings and impairment charges; fluctuations in raw material and energy costs; the impact of the company's last-in, first-out accounting; weakness in global or regional economic conditions and financial markets; fluctuations in currency valuations; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies; the impact on operations of general economic conditions; fluctuations in customer demand; the impact on the company's pension obligations due to changes in interest rates, investment performance and other tactics designed to reduce risk; the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, and capital investments; the company's ability to realize the potential benefits of the spinoff of the steel business and avoid possible indemnification liabilities under certain agreements it entered into with TimkenSteel Corporation in connection with the spinoff; and the taxable nature of the spinoff. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2014, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Media Contact:  Gloria Irwin   

Investor Contact:  Steve Tschiegg

Communications Manager           

Director – Capital Markets & Investor Relations

Telephone: (234) 262-3514           

Telephone: (234) 262-7446

[email protected]         

[email protected]

The Timken Company




CONDENSED CONSOLIDATED STATEMENT OF INCOME




(Dollars in millions, except share data) (Unaudited)





Three Months Ended
March 31,



2015

2014


Net sales

$               722.5

$               736.8


Cost of products sold

520.0

518.7


Gross Profit

202.5

218.1


Selling, general & administrative expenses (SG&A)

128.5

141.8


Impairment and restructuring

6.2

3.2


Pension settlement charges

215.2

0.7


Operating (Loss) Income

(147.4)

72.4


Other (expense) income, net

(1.4)

20.4


(Loss) Earnings Before Interest and Taxes (EBIT) (1)

(148.8)

92.8


Interest expense, net

(7.3)

(4.5)


(Loss) Income From Continuing Operations Before Income Taxes

(156.1)

88.3


(Benefit) provision for income taxes

(21.3)

28.0


(Loss) Income From Continuing Operations

(134.8)

60.3


Income  from Discontinued Operations, net of income taxes(2)

-

23.5


Net (Loss) Income

(134.8)

83.8


Less: Net Income Attributable to Noncontrolling Interest

0.4

0.3


Net (Loss) Income Attributable to The Timken Company

$             (135.2)

$                 83.5






Net (Loss) Income per Common Share Attributable to The Timken Company Common Shareholders




Basic (Loss) Earnings per share - Continuing Operations

$                (1.54)

$                 0.64


Basic Earnings per share - Discontinued Operations

-

0.26


Basic (Loss) Earnings per share

$                (1.54)

$                 0.90






Diluted (Loss) Earnings per share - Continuing Operations

$                (1.54)

$                 0.64


Diluted Earnings per share - Discontinued Operations

-

0.26


Diluted (Loss) Earnings per share

$                (1.54)

$                 0.90






Average Shares Outstanding

87,670,640

92,172,595


Average Shares Outstanding - assuming dilution

87,670,640

92,980,144






(1) EBIT is defined as operating income plus other income (expense).  EBIT is an important financial measure used in the management of the business, including decisions concerning the allocation of resources and assessment of performance.  Management believes that reporting EBIT is useful to investors as this measure is representative of the Company's performance and cash generation.  

(2) Discontinued Operations related to the spinoff of the steel business on June 30, 2014 and includes both operating results and separation costs.

BUSINESS SEGMENTS 



(Dollars in millions) (Unaudited)




Three Months Ended
March 31,


2015

2014




Mobile Industries 



Net sales to external customers

$                              393.0

$                              421.7

Earnings before interest and taxes (EBIT)  (1) 

$                                35.4

$                                64.3

EBIT Margin  (1)

9.0 %

15.2 %




Process Industries 



Net sales to external customers

$                              329.5

$                              315.1

Earnings before interest and taxes (EBIT)  (1) 

$                                45.2

$                                48.2

EBIT Margin  (1)

13.7 %

15.3 %




Unallocated corporate expense

$                              (14.2)

$                               (19.7)

Unallocated pension settlement charges  (2) 

$                            (215.2)

$                                    —




Consolidated



Net sales to external customers

$                              722.5

$                               736.8

(Loss) Earnings before interest and taxes (EBIT)  (1) 

$                            (148.8)

$                                 92.8

EBIT Margin  (1)

(20.6)%

12.6 %




(1) EBIT is defined as operating income plus other income (expense).  EBIT Margin is EBIT as a percentage of net sales.  EBIT and EBIT Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance.  Management believes that reporting EBIT and EBIT Margin is useful to investors as these measures are representative of the Company's performance and cash generation.  


(2) Unallocated pension settlement charges related to the purchase of a group annuity contract from Prudential Insurance Company of America (Prudential) on January 23, 2015, that requires Prudential to pay and administer future pension benefits for approximately 5,000 U.S. Timken retirees, as well as lump sum distributions to new retirees during the first quarter of 2015.  

CONDENSED CONSOLIDATED BALANCE SHEET


(Dollars in millions) (Unaudited)




March 31,
2015

December 31,
2013

ASSETS



Cash and cash equivalents

$               154.4

$               278.8

Restricted cash

14.8

15.3

Accounts receivable

491.5

475.7

Inventories, net

580.3

585.5

Other current assets

122.8

126.6

Total Current Assets

1,363.8

1,481.9

Property, Plant and Equipment, net

760.2

780.5

Goodwill

256.6

259.5

Non-current pension assets

109.6

176.2

Other assets

330.2

303.3

Total Assets

$            2,820.4

$            3,001.4




LIABILITIES



Accounts payable

$               168.4

$               143.9

Short-term debt

3.7

8.0

Income taxes

108.3

80.2

Accrued expenses

239.0

301.7

Total Current Liabilities

519.4

533.8




Long-term debt

519.7

522.1

Accrued pension cost

158.1

165.9

Accrued postretirement benefits cost

137.8

141.8

Other non-current liabilities

69.2

48.7

Total Liabilities

1,404.2

1,412.3




EQUITY



The Timken Company shareholders' equity

1,403.0

1,576.2

Noncontrolling Interest

13.2

12.9

Total Equity

1,416.2

1,589.1

Total Liabilities and Equity

$            2,820.4

$            3,001.4

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS



(Dollars in millions)   (Unaudited)




Three Months Ended
March 31,


2015

2014

Cash Provided (Used)



OPERATING ACTIVITIES



Net (loss) income attributable to The Timken Company

$             (135.2)

$                 83.5

Net income from discontinued operations

-

(23.5)

Net income attributable to noncontrolling interest

0.4

0.3

Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities:



     Depreciation and amortization

33.5

35.1

     Impairment charges

2.7

—

     Loss (gain) on sale of assets

0.3

(23.0)

     Pension and other postretirement expense

225.1

9.5

     Pension and other postretirement benefit contributions and payments 

(6.9)

(17.6)

     Changes in operating assets and liabilities:



     Accounts receivable

(29.6)

(23.8)

     Inventories

(12.8)

(19.9)

     Accounts payable

27.9

18.1

     Accrued expenses

(63.5)

(52.0)

     Income taxes

(29.7)

11.1

     Other, net

4.8

0.9

Net Cash Provided (Used) by Operating Activities - Continuing Operations

$                 17.0

$                  (1.3)

Net Cash Provided by Operating Activities - Discontinued Operations

-

41.5

Net Cash Provided by Operating Activities

$                 17.0

$                 40.2

INVESTING ACTIVITIES



     Capital expenditures

$                (19.7)

$                (19.1)

     Other

5.7

8.8

Net Cash Used by Investing Activities - Continuing Operations

$                (14.0)

$                (10.3)

Net Cash Used by Investing Activities - Discontinued Operations

-

(34.7)

Net Cash Used by Investing Activities

$                (14.0)

$                (45.0)

FINANCING ACTIVITIES



     Cash dividends paid to shareholders

$                (21.9)

$                (23.1)

     Purchase of treasury shares

(96.8)

(117.7)

     Net (payments) proceeds from credit facilities

(3.6)

4.1

     Net payments from long-term debt

(1.1)

(0.2)

     Other

2.6

6.0

Net Cash Used by Financing Activities

$             (120.8)

$             (130.9)

Effect of exchange rate changes on cash

(6.6)

(0.6)

Decrease In Cash and Cash Equivalents

$             (124.4)

$             (136.3)

Cash and cash equivalents at beginning of period

278.8

384.6

Cash and Cash Equivalents at End of Period

$               154.4

$               248.3

Reconciliations of Adjusted Net Income from Continuing Operations and Net (Loss) Income from Continuing Operations to GAAP (Loss) Income from Continuing Operations and Adjusted Earnings Per Share to GAAP (Loss) Earnings Per Share:

These reconciliations are provided as additional relevant information about the Company's performance.  Management believes that adjusted net income from continuing operations, net (loss) income from continuing operations, and diluted (loss) earnings per share, adjusted to remove: (a) pension settlement charges; (b) impairment and restructuring charges; (c) gain on sale of real estate in Brazil; and (d) (benefit) provision for income taxes are representative of the Company's performance and therefore useful to investors.  


Three Months Ended 

(Dollars in millions, except share data) (Unaudited)

March 31,


2015

EPS

2014

EPS

(Loss) Income from Continuing Operations

$       (134.8)


$           60.3


        Less: Net Income Attributable to Noncontrolling Interest

0.4


0.3


          Net (Loss) Income from Continuing Operations

$       (135.2)

$          (1.54)

$           60.0

$           0.64






Adjustments:





  Pension settlement charges (1)

$         215.2

$           2.45

$              0.7

$           0.01

  Impairment and restructuring charges (2)

6.6

0.07

4.2

0.05

  Gain on sale of real estate in Brazil (3)

-

-

(22.6)

(0.24)

  (Benefit) provision for income taxes (4)

(42.4)

(0.48)

4.7

0.05

          Total Adjustments:

179.4

2.04

(13.0)

(0.14)

Adjusted Net Income from Continuing Operations

$           44.2

$           0.50

$           47.0

$           0.50











(1)  Pension settlement charges related to the purchase of a group annuity contract from Prudential on January 23, 2015, that requires Prudential to pay and administer future pension benefits for approximately 5,000 U.S. Timken retirees, as well as lump sum distributions to new retirees during the first quarter of 2015.  






(2)  Impairment and restructuring charges related to plant closures, the rationalization of certain plants and severance related to cost reduction initiatives.  






(3)  Gain on the sale of real estate related to the sale of the former manufacturing facility in Sao Paulo, Brazil.






(4)  (Benefit) provision for income taxes includes the tax impact on pre-tax special items, the impact of discrete tax items recorded during the respective periods, as well as adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods.  

Reconciliation of EBIT to GAAP Net (Loss) Income, and EBIT Margin, After Adjustments, to Net (Loss) Income as a Percentage of Sales and EBIT, After Adjustments, to Net (Loss) Income:

The following reconciliation is provided as additional relevant information about the Company's performance.  Management believes consolidated (loss) earnings before interest and taxes (EBIT) is representative of the Company's performance and that it is appropriate to compare GAAP net (loss) income to consolidated EBIT.  Management also believes that EBIT and EBIT margin, after adjustments, are representative of the Company's core operations and therefore useful to investors.






Three Months Ended 

(Dollars in millions, except share data)  (Unaudited)

March 31,


2015

Percentage to
Net Sales

2014

Percentage to
Net Sales

Net (Loss) Income

$         (134.8)

(18.7)%

$             83.8

11.4 %






Income From Discontinued Operations, net of income taxes

—

—%

(23.5)

(3.2)%

(Benefit) provision for income taxes

(21.3)

(2.9)%

28.0

3.8 %

Interest expense

8.0

1.1 %

5.5

0.7 %

Interest income

(0.7)

(0.1)%

(1.0)

(0.1)%

Consolidated (loss) earnings before interest and taxes (EBIT)

$         (148.8)

(20.6)%

$             92.8

12.6 %






Adjustments:





  Pension settlement charges (1)

215.2

29.8 %

0.7

0.1 %

  Impairment and restructuring charges (2)

6.6

0.9 %

4.2

0.6 %

  Gain on sale of real estate in Brazil (3)

—

—%

(22.6)

(3.1)%

          Total Adjustments

221.8

30.7 %

(17.7)

(2.4)%

Consolidated earnings before interest and taxes (EBIT), after adjustments

$             73.0

10.1 %

$             75.1

10.2 %











(1)  Pension settlement charges related to the purchase of a group annuity contract from Prudential on January 23, 2015, that requires Prudential to pay and administer future pension benefits for approximately 5,000 U.S. Timken retirees, as well as lump sum distributions to new retirees during the first quarter of 2015.  






(2)  Impairment and restructuring charges related to plant closures, the rationalization of certain plants, and severance related to cost reduction initiatives.  






(3)  Gain on the sale of real estate related to the sale of the former manufacturing facility in Sao Paulo, Brazil.

Reconciliation of segment EBIT Margin, After Adjustments, to segment EBIT as a Percentage of Sales and segment EBIT, After Adjustments, to segment EBIT:

The following reconciliation is provided as additional relevant information about the Company's Mobile Industries and Process Industries segment performance.  Management believes that segment EBIT and EBIT margin, after adjustments, are representative of the segment's core operations and therefore useful to investors.  











Mobile Industries





(Dollars in millions) (Unaudited)

Three Months Ended March 31, 2015

Percentage to Net Sales

Three Months Ended March 31, 2014

Percentage to Net Sales

Earnings before interest and taxes (EBIT)

$            35.4

9.0%

$          64.3

15.2%






Pension settlement charges (1)

-

-

0.7

0.2 %

Impairment and restructuring charges(2)

1.0

0.3 %

2.9

0.7 %

Gain on sale of real estate in Brazil(3)

-

-

(22.6)

(5.4)%

Earnings before interest and taxes (EBIT), after adjustments

$            36.4

9.3%

$          45.3

10.7%











Process Industries

(Dollars in millions) (Unaudited)

Three Months Ended March 31, 2015

Percentage to Net Sales

Three Months Ended March 31, 2014

Percentage to Net Sales

Earnings before interest and taxes (EBIT)

$            45.2

13.7%

$         48.2

15.3%






Impairment and restructuring charges(2)

5.6

1.7 %

1.1

0.3 %

Earnings before interest and taxes (EBIT), after adjustments

$            50.8

15.4%

$         49.3

15.6%











(1)  Pension settlement charges related to the settlement of certain pension obligations in Canada.






(2)  Impairment and restructuring charges related to plant closures, the rationalization of certain plants, and severance related to cost reduction initiatives.  






(3)  Gain on the sale of real estate related to the sale of the former manufacturing facility in Sao Paulo, Brazil.

Logo - http://photos.prnewswire.com/prnh/20100210/TIMKENLOGO

SOURCE The Timken Company

Related Links

http://www.timken.com

Modal title

Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement
  • Asia
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Mexico
  • Middle East
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom

My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2022 Cision US Inc.