We’re once again in the middle of a new quarterly earnings reporting period for publicly-traded industrial distributors and manufacturers. Read below to learn about the most recent sales and revenue numbers for companies MDM typically covers, including: North Canton, Ohio-based bearings manufacturer Timken (4Q 2022); Pittsburgh, Pennsylvania-based tooling supplier Kennametal (2Q FY2023); and Pleasanton, California-based Simpson Manufacturing Co., which makes engineered structural connectors and building solutions (4Q 2022).
Timken 4Q Sales Up 7.4%, Full-Year Up 8.8%
On Feb. 6, Timken reported 4Q 2022 sales of $1.08 billion, up 7.4% year-over-year. Organically, 4Q sales were up 10.2% versus the prior year, according to a news release. The bearings manufacturer’s 4Q results were down slightly compared with 3Q 2022, when the company posted sales of $1.14 billion (9.6% growth year-over-year). Timken’s overall strong performance to finish the year was driven by strong organic growth across most end-market sectors and the favorable impact of acquisitions, according to the release.
For the full-year 2022, Timken had sales of $4.5 billion, up 8.8% from 2021. The increase was again primarily driven by organic growth in most end-market sectors, as well as the impact of higher pricing and acquisitions, according to the release. Organically, Timken’s 2022 sales were up 11.6% from 2021.
“We delivered excellent results in the fourth quarter, driven by strong execution and improved price-cost performance,” Timken President and CEO Richard Kyle said in the release. “In 2022, Timken continued to grow its position as a diversified industrial leader and delivered record revenue and earnings per share with solid operating margin expansion. We have the right strategy, the right team and the right portfolio in place to continue our positive momentum heading into 2023.”
Timken has made two acquisitions — Nadella Group and American Roller Bearing Company — thus far in 2023.
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Kennametal Sales Growth Flattens in Fiscal 2Q
On Feb. 6, Kennametal reported its fiscal 2023 2Q earnings, which showed consistent but modest growth compared to the same quarter last year and to fiscal 1Q. Second-quarter sales were $497 million, an increase of 2% year-over-year, driven by 11% organic growth. Kennametal also reported 2% sales growth in its fiscal 1Q earnings in November.
The company said sales growth was driven by pricing actions and end market resiliency, especially in the Americas and Europe, the Middle East and Africa. U.S .dollar strength and inflation remain significant headwinds, however, Kennametal said in its announcement.
“Our second quarter fiscal 2023 results reflect strong organic sales growth and cash flow generation,” said Christopher Rossi, President and CEO. “We are encouraged by the resiliency of our end markets and our expectations for the full year remain largely the same. While each quarter can present challenges in this environment, we are confident in our Commercial and Operational Excellence initiatives driving long-term growth and profitability.”
In fiscal 2Q, operating income was $35 million, or 7.1% of sales, compared to $48 million, or 9.8% of sales, in the prior-year quarter.
European Sales Boost Simpson in 4Q
Simpson Manufacturing Co. on Feb. 6 posted 4Q 2022 net sales of $475.6 million, a 13.6% increase year-over-year. The building materials manufacturer saw its North America net sales fall 1.4% from 4Q 2021 primarily due to lower sales volumes and negative impact from foreign currency translation, according to a news release. Simpson’s Europe net sales, however, jumped 150.3%, largely thanks to the company’s acquisition of ETANCO in April 2022. Simpson’s 4Q net sales were down from $553.7 million in 3Q 2022.
For the full-year 2022, Simpson recorded sales of $2.12 billion, up 34.5% from 2021. The increase was primarily due to product price increases and the ETANCO acquisition, according to the release.
“2022 marked a year of strong financial and operational performance for Simpson despite a challenging operating environment,” Simpson President and CEO Mike Olosky said in the release. “Our performance further demonstrates strong operational execution as we continued to integrate ETANCO and advance our key growth initiatives forward. Those initiatives enabled us to grow our North America volumes above U.S. housing starts for the year.”
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