Timken Co. (TKR) swung to a third-quarter profit and adjusted
results topped analysts' expectations as sales and margins
grew.
The company raised its earnings forecast for the year to $2.80
to $2.90 a share from $2.40 to $2.60.
The maker of bearings and specialty steel products has seen
demand rebound of late as key buyers in automotive, construction
and industrial-equipment increase orders. The auto industry has
boosted production recently, though many of the biggest U.S.
steelmakers have reported quarterly losses in recent weeks as
demand has faltered amid economic uncertainty.
Timken reported a profit of $70.3 million, or 72 cents a share,
compared with a year-earlier loss of $50.2 million, or 52 cents a
share. Excluding items such as restructuring charges and
write-downs, earnings soared to 80 cents from 5 cents. Revenue
jumped 39% to $1.06 billion.
Analysts polled by Thomson Reuters most recently forecast
earnings of 67 cents on $1.01 billion in revenue.
Gross margin widened to 25.2% from 17.1% amid the revenue
gain.
Sales in the bearings and power-transmission segment, typically
its largest top-line contributor, rose 17% as profit doubled. The
steel group, which makes steel bars and tubes, saw sales more than
double amid "strong demand across all markets."
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com