The Timken Company (NYSE: TKR) today reported sales of $828.9
million for the second quarter of 2009, a decrease of 46 percent
over the same period a year ago. The decline in sales was due to
weaker demand across most of the company’s end markets, lower steel
surcharges and currency, which were partially offset by improved
pricing.
For the quarter, the company incurred a loss of $64.5 million,
or $0.67 per share, compared with income of $88.9 million, or $0.92
per diluted share, a year ago. Excluding special items, the
second-quarter loss was $20.6 million, or $0.21 per share, compared
with the prior-year’s income of $92.4 million or $0.96 per diluted
share. The results reflect lower sales volume and manufacturing
utilization, which were partially offset by favorable pricing and
cost-reduction initiatives.
Special items, net of tax, in the second quarter of 2009
amounted to $43.9 million of expense, compared with charges
totaling $3.5 million in the same period last year. Special items
in 2009 include a pretax, noncash impairment charge of $31.7
million, primarily related to the ongoing consolidation of the
Canton, Ohio bearing operations, as well as severance costs related
to the company’s cost-reduction initiatives. The 2008 special items
included manufacturing rationalization, impairment and
restructuring charges.
“The combination of a slow economy and inventory reduction
throughout the supply chains we serve continues to curb demand for
our products. We’re now seeing evidence that our customers’
inventory destocking activities may go longer and deeper than we
expected,” said James W. Griffith, Timken president and chief
executive officer. “We have decreased manufacturing output in
response to lower demand and are on track in our efforts to
right-size the company. We’ve also had success in product pricing,
reducing inventory levels and cutting spending across the company,
leading to strong cash generation for the quarter. We have
positioned the company well, and are confident that we will see
stronger structural profitability as markets stabilize.”
Management Actions on Cost
Structure
Earlier this year, the company announced a series of actions to
realign the organization and reduce overhead, staffing levels and
administrative costs, the majority of which were completed in the
second quarter. The company remains on track to deliver the
annualized savings of approximately $80 million associated with
these actions, and is taking additional steps to respond to weaker
market conditions.
Maintaining Strong Balance
Sheet and Liquidity
The company continues to maintain a strong balance sheet with
ample liquidity. In addition to cash and cash equivalents of $277.1
million at June 30, 2009, the company had approximately $830
million available under various credit lines. On July 10th the
company entered into a three-year, $500-million unsecured Senior
Credit Facility to replace the company’s previous credit facility,
which was set to expire on June 30, 2010.
Total debt was $592.5 million as of June 30, 2009, or 27.0
percent of capital. Net debt at June 30, 2009, was $315.5 million,
or 16.5 percent of capital, compared with $490.5 million, or 22.8
percent, as of Dec. 31, 2008. During the quarter the company
generated cash flow from operating activities of $220.3 million,
driven primarily by inventory reductions.
Agreement to Sell Needle
Roller Bearings Business
Earlier today, the company announced it signed an agreement to
sell the assets of its Needle Roller Bearings business to JTEKT
Corporation. “This transaction is a major step forward in our
strategy to transform Timken’s portfolio to focus on industrial
sectors with strong aftermarkets,” said Griffith.
In 2008, the Needle Roller Bearings business had approximately
$620 million in sales, comprising around 11 percent of the
company’s overall revenues. In the first half of 2009, sales were
about $185 million. The business employs roughly 3,400 people and
manufactures highly engineered needle roller bearings, primarily
serving the automotive original-equipment market sector.
Timken will receive cash proceeds of approximately $330 million
upon completion, subject to adjustments for working capital. The
transaction is expected to close by the end of the year, subject to
the satisfaction of certain closing conditions. The business’
current book value is approximately $385 million. The results of
the Needle Roller Bearings business will be reclassified to
discontinued operations beginning in the third quarter of 2009.
Six Months’
Results
For the first half of 2009, sales were $1.79 billion, a decrease
of 40 percent from the same period in 2008. For the first six
months of 2009, the company incurred a loss of $0.66 per share,
compared with earnings of $1.80 per diluted share last year.
Special items, net of tax, in the first half of 2009 totaled $50.2
million of expense, compared with $2.1 million of income in the
prior-year period. Special items in 2009 were primarily related to
impairment and severance charges, while prior-year special items
included a gain on a real estate divestment associated with a prior
plant closure, partially offset by charges related to
restructuring, rationalization and impairment. Excluding special
items, the loss was $0.14 per share in the first half of 2009,
versus earnings of $1.78 per diluted share in the first half of
2008. During the first six months of 2009, the company was affected
by weaker demand across most of its end markets, partially offset
by pricing and cost-reduction initiatives.
Bearings and Power
Transmission Group Results
The Bearings and Power Transmission Group had second-quarter
sales of $700.6 million, down 34 percent from $1.06 billion for the
same period last year. Earnings before interest and taxes (EBIT)
for the second quarter were $20.7 million, down 77 percent from
$88.9 million in the second quarter of 2008.
For the first half of 2009, Bearings and Power Transmission
Group sales were $1.43 billion, down 32 percent from the same
period a year ago. First-half 2009 EBIT was $61.4 million, or 4.3
percent of sales, compared with EBIT of $185.6 million, or 8.8
percent of sales, in the first half of 2008.
Mobile Industries Segment
Results
In the second quarter, Mobile Industries sales were $365.7
million, a decrease of 42 percent from $628.2 million for the same
period a year ago. The decline in sales was driven by weaker demand
across all market sectors and the impact of currency, partially
offset by favorable pricing.
Mobile Industries incurred an EBIT loss of $36.4 million in the
second quarter of 2009, compared with EBIT of $14.0 million for the
same period a year ago. The EBIT decline resulted from a
$110-million effect from lower global demand and underutilized
capacity, which was partially offset by approximately $60 million
in improved pricing and cost reductions.
For the first half of 2009, Mobile Industries sales of $738.6
million were down 42 percent from the same period a year ago.
First-half 2009 EBIT was a loss of $61.3 million, or 8.3 percent of
sales, compared with EBIT of $44.5 million, or 3.5 percent of
sales, in the first half of 2008.
Process Industries Segment
Results
Process Industries had second-quarter sales of $221.7 million,
down 32 percent from $328.4 million for the same period a year ago.
Lower demand across most industrial market sectors and currency
more than offset favorable pricing. Sales declines were primarily
in the metals, gear-drive and wind-energy sectors.
Second-quarter EBIT was $37.6 million, down 40 percent from $
62.8 million in the same period a year ago. Lower EBIT primarily
resulted from volume, partially offset by pricing and cost
reduction initiatives.
For the first half of 2009, Process Industries sales were $464.9
million, down 27 percent from the same period a year ago.
First-half 2009 EBIT was $84.6 million, or 18.2 percent of sales,
compared with EBIT of $121.8 million, or 19.0 percent of sales, in
the first half of 2008.
Aerospace and Defense Segment
Results
Aerospace and Defense had second-quarter sales of $113.2
million, up 7 percent from $105.7 million for the same period last
year. The increase was driven by favorable pricing and
acquisitions. The EXTEX acquisition, completed in November 2008,
accounted for approximately 35 percent of the sales increase.
Second-quarter EBIT was $19.5 million, up 61 percent from $12.1
million in the same period a year ago. Performance benefited
primarily from pricing and cost-reduction initiatives.
For the first half of 2009, Aerospace and Defense sales were
$225.8 million, up 9 percent from the same period a year ago. The
EXTEX acquisition accounted for approximately one-third of the
sales increase. First-half 2009 EBIT was $38.1 million, or 16.9
percent of sales, compared with EBIT of $19.3 million, or 9.3
percent of sales, in the first half of 2008.
Steel Group
Results
Sales for the Steel Group, including inter-group sales, were
$134.8 million during the quarter, a decrease of 74 percent from
$518.9 million in second-quarter sales last year. The decline was
driven by lower demand across all market sectors of approximately
40 percent in total, with the greatest decline coming from the
energy, service-center and automotive sectors. Sales were also
affected by a decline in raw-material surcharges of approximately
$180 million from the second quarter last year.
The Steel Group incurred an EBIT loss of $32.9 million compared
with EBIT of $80.3 million for the same period a year ago. The
decline primarily resulted from lower demand and underutilization
of manufacturing capacity of roughly $125 million, partially offset
by cost-reduction actions. The lower surcharges of about $180
million were offset by approximately $150 million in favorable
material costs and a change in LIFO of approximately $30 million.
The change in LIFO was due to expected lower year-end inventory
quantities and material costs.
For the first six months of 2009, Steel Group sales were $383.4
million, down 59 percent from the first half of last year. EBIT for
the first half of 2009 was a loss of $40.2 million, or 10.5 percent
of sales, compared with EBIT of $133.7 million, or 14.2 percent of
sales in last year’s first half.
Outlook (Including Needle
Roller Bearings Business)
While the economic outlook continues to remain uncertain, the
company expects the impact of the global recession to be greater
than previously anticipated, due not only to the depth and breadth
of decline across end-markets, but also the compounding factor of
inventory destocking throughout the supply chain. Mobile Industries
sales are expected to be down approximately 35 to 40 percent for
the year, driven by lower North American light-vehicle production,
and significant declines in heavy-truck builds in North America and
Europe. Process Industries sales are expected to be down by about
30 to 35 percent in 2009, with broad-based volume declines in most
end markets, especially heavy industrial equipment. Sales in the
Aerospace and Defense segment are expected to be up roughly 5
percent for 2009, driven by a strong defense sector, while recent
softening in the civil sector is expected to have a minimal effect,
given current order backlogs. Steel Group sales are expected to
decline approximately 60 to 65 percent for the year due to lower
demand and surcharges across all sectors.
As a result of the company’s global market outlook, it reduced
its earnings estimate for 2009, now expecting earnings per share,
excluding special items, to be a loss of $(0.40) to $(0.90). The
company remains on track to deliver strong cash from operations in
2009, driven by effective working capital management and reduced
spending.
Conference Call
Information
The company will host a conference call for investors and
analysts today to discuss financial results and its announced
agreement to divest the Needle Roller Bearings business.
Conference Call: Wednesday, July 29, 2009 11 a.m. Eastern
Time
All Callers:
Live Dial-In: 800-344-0593 or 706-634-0975 (Call in 10 minutes
prior to be included.) Conference ID: 68491744 Replay
Dial-In through Aug. 7, 2009: 800-642-1687 or 706-645-9291
Live Webcast:
www.timken.com/investors
About The Timken
Company
The Timken Company keeps the world turning, with innovative
friction management and power transmission products and services,
enabling our customers’ machinery to perform more efficiently and
reliably. With sales of $5.7 billion in 2008 and operations in 26
countries, Timken is Where You Turn™ for better performance.
Certain statements in this news release (including statements
regarding the company's forecasts, estimates and expectations) that
are not historical in nature are "forward-looking" statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. In particular, the statements related to expectations
regarding the company’s future financial performance, cost
reduction initiatives, and timing of the closing of the Needle
Roller Bearings transaction, including the information under the
headings “Management Actions on Cost Structure,” “Agreement to Sell
Needle Roller Bearings Business” and “Outlook (Including Needle
Roller Bearings Business),” are forward-looking. The company
cautions that actual results may differ materially from those
projected or implied in forward-looking statements due to a variety
of important factors, including: the finalization of the company’s
financial statements for the second quarter of 2009; the inability
to complete the sale of the Needle Roller Bearings business due to
either the failure to satisfy any condition to the closing of the
transaction, including receipt of regulatory approval, or the
occurrence of any event, change or other circumstance that could
give rise to the termination of the purchase agreement; the
company’s ability to respond to the changes in its end markets that
could affect demand for the company’s products; unanticipated
changes in business relationships with customers or their purchases
from the company; changes in the financial health of the company’s
customers, including any disruptions or bankruptcies in the
automotive industry which may have an impact on the company’s
revenues, earnings and impairment charges; fluctuations in
raw-material and energy costs and their impact on the operation of
the company’s surcharge mechanisms; the impact of the company’s
LIFO accounting; continued weakness in global economic conditions
and financial markets; changes in the expected costs associated
with product warranty claims; the results of the company’s
discussions with the union that represents company associates at
the Canton area manufacturing facilities; the impact on operations
of general economic conditions, higher or lower raw-material and
energy costs, fluctuations in customer demand; and the company's
ability to achieve the benefits of its future and ongoing programs
and initiatives, including, without limitation, the initiative to
reduce its employment levels and other costs, the implementation of
its Mobile Industries Segment restructuring program and initiatives
and the rationalization of the company’s Canton bearing operations.
These and additional factors are described in greater detail in the
company's Annual Report on Form 10-K for the year ended Dec. 31,
2008, page 44 and in the company’s Form 10-Q for the quarter ended
March 31, 2009. The company undertakes no obligation to update or
revise any forward-looking statement.
(Unaudited)
CONDENSED CONSOLIDATED STATEMENT OF INCOME AS
REPORTED ADJUSTED (1) (Dollars in thousands, except
share data) Q2 2009 Q2 2008
Six
Months 2009 Six Months 2008
Q2 2009 Q2
2008
Six Months 2009 Six Months 2008 Net sales
$ 828,927 $ 1,535,549
$ 1,789,305 $
2,970,219
$ 828,927 $ 1,535,549
$
1,789,305 $ 2,970,219 Cost of products sold
708,653
1,190,937
1,515,714 2,312,696
708,653 1,190,937
1,515,714 2,312,696 Manufacturing rationalization /
reorganization
expenses - cost of products
sold
1,439 868
2,630 2,242
- -
-
-
Gross Profit $
118,835 $ 343,744
$ 270,961 $ 655,281
$
120,274 $ 344,612
$ 273,591 $ 657,523 Selling,
administrative & general expenses (SG&A)
141,336
195,352
280,058 372,490
141,336 195,352
280,058 372,490 Manufacturing rationalization /
reorganization
expenses - SG&A
979 1,251
1,253 2,059
- -
- - Gain on
divestitures
- -
- (8 )
- -
- -
Impairment and restructuring
54,915
1,807
69,659
4,683
- -
- -
Operating (Loss) Income $ (78,395 ) $
145,334
$ (80,009 ) $ 276,057
$
(21,062 ) $ 149,260
$ (6,467 ) $
285,033 Other income (expense)
(1,330 ) (892 )
4,916 (5,779 )
(1,330 ) (892 )
4,916
(5,779 ) Special items - other income
757
191
1,979
20,545
- -
- -
(Loss) Earnings Before Interest and Taxes (EBIT) $
(78,968 ) $ 144,633
$ (73,114 )
$ 290,823
$ (22,392 ) $ 148,368
$
(1,551 ) $ 279,254 Interest expense, net
(7,942 ) (10,128 )
(16,026 ) (19,728 )
(7,942 ) (10,128 )
(16,026 ) (19,728 )
(Loss) Earnings
Before Income Taxes (86,910 ) 134,505
(89,140 ) 271,095
(30,334 ) 138,240
(17,577 ) 259,526 Provision (benefit) for income
taxes
(23,040 ) 44,584
(20,192 ) 95,824
(10,411 ) 44,857
(4,940 ) 86,395
Net (Loss) Income $ (63,870 ) $
89,921
$ (68,948 ) $ 175,271
$
(19,923 ) $ 93,383
$ (12,637 ) $
173,131 Less: net income (loss) attributable to noncontrolling
interest
647 978
(5,301 ) 1,863
664 978
847 1,863
Net (Loss)
Income Attributable to The Timken Company $
(64,517 ) $ 88,943
$
(63,647 ) $ 173,408
$
(20,587 ) $ 92,405
$
(13,484 ) $ 171,268
Net Income per Common Share
Attributable to The Timken Company Common Shareholders:
Basic Earnings Per Share $ (0.67
) $ 0.93
$ (0.66 ) $ 1.82
$
(0.21 ) $ 0.97
$ (0.14 ) $ 1.79
Diluted Earnings Per Share $ (0.67
) $ 0.92
$ (0.66 ) $ 1.80
$
(0.21 ) $ 0.96
$ (0.14 ) $ 1.78
Average Shares Outstanding
96,147,809 95,604,374
96,082,491 95,440,281
96,147,809 95,604,374
96,082,491 95,440,281 Average Shares Outstanding - assuming
dilution
96,147,809
96,507,960
96,082,491
96,256,051
96,147,809
96,507,960
96,082,491
96,256,051
BUSINESS SEGMENTS
(Dollars in thousands) (Unaudited)
Q2 2009 Q2 2008
Six Months
2009 Six Months 2008
Mobile Industries Segment
Net sales to external
customers
$ 365,740 $ 628,238
$ 738,604
$ 1,263,490 Adjusted (loss) earnings before interest and taxes
(EBIT) (2)
$ (36,396 ) $ 13,968
$
(61,275 ) $ 44,535 Adjusted EBIT Margin (2)
-10.0 % 2.2 %
-8.3 % 3.5 %
Process Industries Segment
Net sales to external customers
$ 221,010 $ 327,504
$ 463,294 $ 639,716 Intergroup sales
700 869
1,622 1,279 Total net sales
$ 221,710 $ 328,373
$ 464,916 $ 640,995
Adjusted earnings before interest and taxes (EBIT) (2)
$
37,586 $ 62,803
$ 84,603 $ 121,840 Adjusted
EBIT Margin (2)
17.0 % 19.1 %
18.2 %
19.0 %
Aerospace and Defense Segment
Net sales to external customers
$ 113,165 $ 105,676
$ 225,830 $ 207,808 Adjusted earnings before interest
and taxes (EBIT) (2)
$ 19,504 $ 12,111
$
38,057 $ 19,273 Adjusted EBIT Margin (2)
17.2
% 11.5 %
16.9 % 9.3 %
Total Bearings and Power Transmission
Group
Net sales to external customers
$ 699,915 $ 1,061,418
$ 1,427,728 $ 2,111,014 Intergroup sales
700 869
1,622 1,279 Total net sales
$ 700,615 $ 1,062,287
$ 1,429,350 $
2,112,293 Adjusted earnings before interest and taxes (EBIT) (2)
$ 20,694 $ 88,882
$ 61,385 $ 185,648
Adjusted EBIT Margin (2)
3.0 % 8.4 %
4.3
% 8.8 %
Steel Group
Net sales to external customers
$ 129,012 $ 474,131
$ 361,577 $ 859,205 Intergroup sales
5,823 44,797
21,826 84,711 Total net sales
$ 134,835 $ 518,928
$ 383,403 $ 943,916
Adjusted (loss) earnings before interest and taxes (EBIT) (2)
$ (32,907 ) $ 80,318
$ (40,169
) $ 133,697 Adjusted EBIT Margin (2)
-24.4 %
15.5 %
-10.5 % 14.2 %
Unallocated
corporate expense $ (13,187 ) $ (19,303 )
$ (25,517 ) $ (35,728 ) Intergroup
eliminations expense (3)
$ 3,008 $ (1,529 )
$
2,750 $ (4,363 )
Consolidated
Net sales to external customers
$ 828,927 $ 1,535,549
$ 1,789,305 $ 2,970,219 Adjusted earnings before
interest and taxes (EBIT) (2)
$ (22,392 ) $
148,368
$ (1,551 ) $ 279,254 Adjusted EBIT
Margin (2)
-2.7 % 9.7 %
-0.1 % 9.4 %
(1) "Adjusted" statements exclude
the impact of impairment and restructuring, manufacturing
rationalization/reorganization and special charges and credits for
all periods shown.
(2) EBIT is defined as operating
income plus other income (expense). EBIT Margin is EBIT as a
percentage of net sales. EBIT and EBIT margin on a segment basis
exclude certain special items set forth above. EBIT and EBIT Margin
are important financial measures used in the management of the
business, including decisions concerning the allocation of
resources and assessment of performance. Management believes that
reporting EBIT and EBIT Margin best reflect the performance of the
company's business segments and EBIT disclosures are responsive to
investors.
(3) Intergroup eliminations represent intergroup profit or
loss between the Steel Group and the Bearings and Power
Transmission Group.
Reconciliation of GAAP net income
attributable to the Timken Co. and EPS - diluted
This reconciliation is provided as
additional relevant information about the company's performance.
Management believes adjusted net income and adjusted earnings per
share are more representative of the company's performance and
therefore useful to investors. Management also believes that it is
appropriate to compare GAAP net income to adjusted net income in
light of special items related to impairment and restructuring and
manufacturing rationalization/reorganization costs, Continued
Dumping and Subsidy Offset Act (CDSOA) receipts, and gain/loss on
the sale of non-strategic assets.
Second
Quarter Six Months 2009 2008
2009 2008
(Dollars in thousands, except per share
data) (Unaudited) $ EPS (1)
$ EPS (1)
$ EPS (1) $ EPS
(1) Net (loss) income attributable to The Timken Company
$ (64,517 ) $ (0.67 ) $
88,943 $ 0.92
$ (63,647 ) $
(0.66 ) $ 173,408 $ 1.80 Pre-tax special
items:
Manufacturing
rationalization/reorganization expenses - cost of products sold
1,439 0.01 868 0.01
2,630 0.03 2,242
0.02 Manufacturing rationalization/reorganization expenses -
SG&A
979 0.01 1,251 0.01
1,253 0.01
2,059 0.02 Gain on divestitures
- - - -
-
- (8 ) - Impairment and restructuring
54,915
0.57 1,807 0.02
69,659 0.72 4,683 0.05 Special
items - other income
(757 ) (0.01 )
(191 ) -
(1,979 ) (0.02 ) (20,545 )
(0.21 ) Provision for income taxes (2)
(12,629 )
(0.13 ) (273 ) -
(15,252 ) (0.16
) 9,429 0.10 Less: net loss attributable to noncontrolling
interest
(17 ) -
- -
(6,148
) (0.06 ) -
- Adjusted net (loss) income attributable to
The Timken Company
$ (20,587 ) $
(0.21 ) $ 92,405 $ 0.96
$
(13,484 ) $ (0.14 )
$ 171,268 $ 1.78 (1) EPS amounts may
not sum due to rounding differences.
(2) Provision for income taxes
includes adjustments to remove the income taxes associated with
pre-tax special items and the impact of discrete tax items recorded
during the period(s), and to reflect one overall effective tax rate
on Adjusted pre-tax income.
Reconciliation of Outlook Information
Expected earnings per diluted
share for the 2009 full year excludes special items. Examples of
such special items include impairment and restructuring,
manufacturing rationalization/reorganization expenses, gain/loss on
the sale of non-strategic assets and payments under the CDSOA. It
is not possible at this time to identify the potential amount or
significance of these special items. Management cannot predict
whether the company will receive any additional payments under the
CDSOA in 2009 and if so, in what amount. If the company does
receive any CDSOA payments, they will most likely be received in
the fourth quarter.
Reconciliation of GAAP earnings before income taxes
This reconciliation is provided as
additional relevant information about the company's performance.
Management believes Consolidated adjusted earnings before interest
and taxes (EBIT) and Total Bearings and Power Transmission Group
adjusted EBIT are more representative of the company's performance
and therefore useful to investors. Management also believes that it
is appropriate to compare GAAP Income from Continuing Operations
before Income Taxes to Consolidated adjusted EBIT in light of
special items related to impairment and restructuring and
manufacturing rationalization/reorganization costs, Continued
Dumping and Subsidy Offset Act (CDSOA) receipts, and gain/loss on
the sale of non-strategic assets.
Second Quarter Six Months
2009 2008
2009 2008
(Thousands of U.S. dollars) (Unaudited) $
$
$ $ (Loss) earnings before
income taxes
$ (86,910 ) $ 134,505
$
(89,140 ) $ 271,095 Pre-tax reconciling items:
Interest expense
8,491 11,643
16,964 22,641 Interest
income
(549 ) (1,515 )
(938 ) (2,913 )
Manufacturing
rationalization/reorganization expenses - cost of products sold
1,439 868
2,630 2,242
Manufacturing
rationalization/reorganization expenses - SG&A
979 1,251
1,253 2,059 Gain on divestitures
- -
- (8 ) Impairment and restructuring
54,915 1,807
69,659 4,683 Special items - other income
(757
) (191 )
(1,979 ) (20,545 )
Consolidated adjusted earnings before interest and
taxes (EBIT)
$ (22,392 ) $ 148,368
$ (1,551 ) $ 279,254
Steel Group adjusted earnings
(loss) before interest and taxes (EBIT)
32,907 (80,318 )
40,169 (133,697 ) Unallocated
corporate expense
13,187 19,303
25,517 35,728
Intergroup eliminations expense
(3,008 ) 1,529
(2,750 ) 4,363 Total Bearings and Power
Transmission Group adjusted earnings before interest and taxes
(EBIT)
$ 20,694 $
88,882
$ 61,385 $ 185,648
Reconciliation of Total Debt to Net Debt and the Ratio of Net
Debt to Capital: (Dollars in thousands) (Unaudited)
June 30, 2009 Dec. 31, 2008 Short-term debt
$ 337,697 $ 108,590 Long-term debt
254,845 515,250 Total
Debt
592,542 623,840 Less: Cash and cash equivalents
(277,086 ) (133,383 ) Net Debt
$
315,456 $ 490,457 Shareholders'
equity
$ 1,601,147 $ 1,663,038 Ratio of Total
Debt to Capital
27.0 % 27.3 % Ratio of Net Debt to
Capital (Leverage)
16.5 % 22.8 %
This reconciliation is provided as
additional relevant information about The Timken Company's
financial position. Capital is defined as total debt plus
shareholder's equity.
Management believes Net Debt is
more indicative of Timken's financial position, due to the amount
of cash and cash equivalents.
CONDENSED CONSOLIDATED BALANCE SHEET June
30, Dec 31,
(Dollars in thousands) (Unaudited)
2009 2008
ASSETS Cash & cash
equivalents
$ 277,086 $ 133,383 Accounts receivable
465,068 609,397 Inventories
930,141 1,145,695 Other
current assets
146,482 144,990
Total Current Assets 1,818,777 2,033,465 Property,
plant & equipment
1,653,212 1,743,866 Goodwill
229,699 230,049 Other assets
520,467
528,670
Total Assets $
4,222,155 $ 4,536,050
LIABILITIES
Accounts payable & other liabilities
$ 316,284 $
443,430 Short-term debt
337,697 108,590 Income taxes
5,186 27,598 Accrued expenses
146,608
218,695
Total Current Liabilities
805,775 798,313 Long-term debt
254,845 515,250
Accrued pension cost
844,333 844,045 Accrued postretirement
benefits cost
609,038 613,045 Other non-current liabilities
107,017 102,359
Total
Liabilities 2,621,008 2,873,012
EQUITY
Timken Company shareholders' equity
1,583,404 1,640,244
Noncontrolling interest
17,743
22,794
Total Equity 1,601,147
1,663,038
Total Liabilities and Equity
$ 4,222,155 $ 4,536,050
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS For
the three months ended For the six months ended
June
30, June 30,
June 30, June 30,
(Dollars
in thousands) (Unaudited) 2009
2008
2009 2008
Cash Provided
(Used) OPERATING ACTIVITIES Net (loss) income
attributable to the Timken Company
$ (64,517 )
$ 88,943
$ (63,647 ) $ 173,408 Net (loss)
income attributable to noncontrolling interest
647 978
(5,301
) 1,863 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
59,483 59,605
116,949 117,080 Pension and other
postretirement expense
21,466 18,129
49,050 43,940
Pension and other postretirement benefit payments
(20,386
) (15,914 )
(35,472 ) (41,781 ) Accounts
receivable
87,063 (61,169 )
148,134 (132,793 )
Inventories
161,473 (53,165 )
228,005 (122,050 )
Accounts payable and accrued expenses
(75,300 )
54,974
(231,109 ) 52,116 Other
50,388
14,685
46,835
(1,068 )
Net Cash Provided by Operating
Activities 220,317 107,066
253,444 90,715
INVESTING ACTIVITIES Capital expenditures
(21,056
) (75,030 )
(54,618 ) (127,447 ) Other
1,742 (1,040 )
5,776 28,135 Acquisitions
(311 ) (1,577 )
(353 ) (56,906 )
Net Cash Used by
Investing Activities (19,625 ) (77,647 )
(49,195 ) (156,218 )
FINANCING
ACTIVITIES Cash dividends paid to shareholders
(8,714
) (16,389 )
(26,138 ) (32,709 ) Net proceeds
from common share activity
(1,648 ) 14,121
-
15,708 Net borrowings (payments) on credit facilities
(48,393 ) (12,416 )
(42,359 ) 127,140
Net Cash
(Used) Provided by Financing Activities (58,755 )
(14,684 )
(68,497 ) 110,139 Effect of exchange
rate changes on cash
11,037 1,412
7,951 5,921
Increase in Cash and Cash Equivalents 152,974 16,147
143,703 50,557
Cash and Cash Equivalents at Beginning of
Period 124,112 77,294
133,383 42,884
Cash and Cash Equivalents at End of Period $
277,086 $ 93,441
$
277,086 $ 93,441
Grafico Azioni Timken (NYSE:TKR)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Timken (NYSE:TKR)
Storico
Da Lug 2023 a Lug 2024