Timken Sales Up 18% in 3Q

The Timken Company, Canton, OH , reported record third-quarter sales of $1.48 billion, an increase of 18% over the same period a year ago. Profit was $130.4 million, compared to $41.2 million for third quarter 2007.
 
The company benefited from the favorable impact of surcharges, pricing and currency, as well as acquisitions that serve the aerospace and energy market sectors. Strong sales in global industrial markets largely offset the impact of weaker automotive demand.
  
Our strategy of shifting our portfolio toward more attractive global industrial markets is clearly delivering results,"said James W. Griffith, Timken's president and chief executive officer. "While the economy today is unsettled, we still see strong demand for our products from aerospace, energy and heavy industry market sectors, as well as growth in Asia ."
  
For the first nine months of 2008, sales were $4.45 billion, an increase of 14% percent from the same period in 2007. Profit improved 76.9% to $303.8 million.
  
Segment Results
The Bearings and Power Transmission Group had third-quarter sales of $1 billion, up 8% for the same period last year. Strong global industrial demand, pricing, shifting capacity to more profitable segments and currency drove the increase, which was partially offset by high material costs and weakness in automotive markets.
  
In the third quarter, Mobile Industries sales were $539 million, a decrease of 8% in a year-over-year comparison. Sales declined as a result of lower demand from the North American and European light-vehicle market sectors. Stronger demand in the heavy-truck and off-highway market sectors and pricing partially offset the drop in light-vehicle demand.
  
Process Industries had third-quarter sales of $346.3 million, up 33%.
 
Third-quarter sales for Aerospace and Defense improved 56% to $110 million. About half of the increase in sales was driven by the Purdy acquisition, completed in the fourth quarter of last year.
 
Sales for the Steel Group, including inter-group sales, for the third quarter were $536.5 million, an increase of 4%.
 
The Timken Company manufactures highly engineered bearings, alloy steels, and related components and assemblies. Timken had sales of $5.2 billion in 2007, with operations in 27 countries and about 25,000 employees.