The 2020 Mid-Year Economic Update_long

Timken’s Q4 Sales Down 1.5%

For the full year, sales grew 5.8%.

The Timken Co. (NYSE: TKR), Canton, Ohio, reported fourth-quarter sales of $896 million, down 1.5% compared with the year-ago period. According to the company, the decline was driven by lower demand mainly in the Mobile Industries segment and unfavorable currency, partially offset by the favorable impact of acquisitions and positive pricing. Timken reported $117.8 million in profit for the quarter, compared to $60.8 million in the fourth quarter of 2018.

"Fourth quarter revenue was in line with our expectations and cash flow finished the year strong. While profitability fell short, a significant portion of this related to some higher than normal operating expenses in the quarter that are not expected to persist," said Richard G. Kyle, Timken president and chief executive officer. "In 2019, Timken delivered record earnings per share, operating margin expansion and solid revenue gains in sectors like renewable energy, aerospace and rail. Our strong financial performance in a relatively soft industrial market environment demonstrates the successful execution of our strategy. Our performance in 2019 underscores the enduring strength of our portfolio and reflects a stronger, more diverse Timken Company."

For the full year, sales grew 5.8% to $3.8 billion. The increase was driven by the favorable impact of acquisitions, positive pricing and organic growth in Process Industries, partially offset by unfavorable currency and the impact of lower demand in Mobile Industries.

Net income for the year was $374.7 million.

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