The Timken Company (NYSE: TKR), Canton, OH, reported sales of $1.4 billion in the first quarter of 2012, an increase of 13 percent over the same period a year ago. The increase reflects stronger demand across most of the company's end markets, pricing, mix and the impact of acquisitions.
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The company generated profit of $155.7 million. The increase in first-quarter earnings reflects the benefits of improved pricing, demand, mix and the impact of acquisitions, partially offset by higher selling and administrative expenses.
In the first quarter, Mobile Industries' sales were $469.1 million, up 6 percent from last year's first-quarter sales of $443 million. The increase was primarily driven by higher demand in the off-highway and rail sectors along with the impact of the Drives acquisition, partially offset by exited business in the light-vehicle sector.
EBIT for the segment was $86.7 million for the first quarter, or 18.5 percent of sales. The increase was driven by higher volumes and improved manufacturing and logistics costs, partially offset by the impact of exited business and selling and administrative expenses.
Process Industries' first-quarter sales were $355.6 million, up 25 percent from $285 million for the same period a year ago. The increase reflects stronger industrial distribution demand, pricing and the impact of the Drives and Philadelphia Gear acquisitions.
Process Industries' first-quarter EBIT was $82.3 million, or 23.1 percent of sales. The increase reflects the benefit of higher volume, pricing and acquisitions, partially offset by higher selling and administrative expenses.
Aerospace and Defense had first-quarter sales of $91.3 million, up 15 percent from $79.1 million for the same period last year. The increase reflects higher volume across most end-markets, led by the defense and motion control sectors.
First-quarter EBIT was $10.7 million, or 11.7 percent of sales. The improvement reflects higher volume and lower selling and administrative expenses.
Sales for Steel, including inter-segment sales, were $535.5 million in the first quarter, an increase of 11 percent from $481.5 million for the same period last year. The results reflect increased pricing and favorable mix driven by strengthening demand in the oil and gas markets, partially offset by lower shipments to the industrial and mobile on-highway sectors. Raw-material surcharges increased $5 million from the first quarter last year.
First-quarter EBIT was $88 million, or 16.4 percent of sales. EBIT performance benefited from improved pricing and mix, partially offset by lower volume, and higher material and labor costs.