The Timken Company (NYSE: TKR), Canton, OH, reported sales for the second quarter of $1.1 billion, a decrease of 16 percent from the prior-year quarter. Profit fell 54.9 percent to $82.8 million.
The second-quarter sales decline primarily reflects lower off-highway, industrial distribution and oil and gas demand as well as the impact of the company's market strategy in the light-vehicle sector, partially offset by the benefit of acquisitions. In addition, sales reflect a $49 million decline in raw material surcharges from the prior-year quarter.
Timken recently expanded its industrial services capabilities through the acquisition of Standard Machine, which provides new gearboxes, gearbox service and repair, and field technical services in Canada and the western United States. The company also started up a second ladle refining station at the Faircrest Steel Plant, the third major system to come on line this year in its steel business.
The company’s board of directors also recently formed a strategy committee to evaluate a potential separation of the company's steel business from its other businesses and to review the company's corporate governance and capital allocation strategy. In April, Timken launched a website in response to a proposal to spin off the business.
In the first half, sales for Timken were $2.2 billion, down 20 percent from the same period in 2012. Profit fell 53.5 percent to $157.9 million.
