CANTON, Ohio, July 28, 2011 /PRNewswire-FirstCall/ -- The
Timken Company (NYSE: TKR) today reported sales of $1.3 billion in the second quarter of 2011, an
increase of 31 percent over the same period a year ago. The
increase primarily reflects growing demand in the company’s broad
industrial markets, as well as favorable effects from pricing,
material surcharges and currency.
The company's second-quarter income from continuing operations
increased 49 percent to $121.5
million, or $1.22 per diluted
share, net of non-controlling interest, compared with $81.4 million, or $0.84 per diluted share a year ago. Improved
demand, mix, surcharges and pricing more than offset higher raw
material and logistics costs, as well as increased selling and
administrative costs.
"Timken's strategy is working. We're benefitting from an
enhanced portfolio, executing well and have positioned the company
to capitalize on attractive global markets," said
James W. Griffith, Timken president and chief executive
officer. "We are on pace to achieve record sales and earnings for
the full year."
Among recent developments, the company:
- Completed on July 1 its
$200 million acquisition of
Philadelphia Gear, a leading provider of aftermarket services for
gear-drive systems in a variety of industrial and military marine
applications;
- Announced plans to establish a Wind Energy Research and
Development Center for advanced bearing systems in large wind
turbines;
- Entered into an amended $500
million unsecured senior credit facility that matures in
May 2016; and
- Increased the quarterly dividend by 11 percent to 20 cents per share.
Six Months’ Results
Timken posted sales of $2.6
billion in the first half of 2011, up 34 percent from the
same period in 2010. Stronger demand across the company's
industrial sectors drove the increase, along with favorable
pricing, surcharges and currency effects.
The company's earnings from continuing operations increased 113
percent to $234.2 million, or
$2.36 per diluted share, net of
non-controlling interest. That compares with $109.7 million, or $1.13 per diluted share, earned in the same
period last year. The first-half of 2011 earnings benefited from
increased demand, higher surcharges and a combination of favorable
pricing and mix, which more than offset higher raw material and
logistics costs, as well as selling and administrative costs.
Total debt as of June 30, 2011,
was $520.9 million, or
19.1 percent of capital. The company had cash of $637.6 million, or $116.7 million in excess of total debt at
the end of the second quarter, compared with a net cash position of
$363.4 million at the end of
2010.
The company used $162.9 million in
cash from operating activities in the first half of 2011, as strong
earnings were more than offset by higher working capital
requirements to support demand and discretionary pension and VEBA
trust contributions. Excluding these discretionary
contributions of $192.8 million net
of tax, free cash flow (operating cash after capital expenditures
and dividends) was a use of $66.8 million. The company continues to
maintain a strong balance sheet and ended the quarter with
$1.5 billion of available
liquidity.
Mobile Industries Segment Results
Mobile Industries’ sales in the second quarter of 2011 rose
16 percent to $465.2 million, compared with last year’s
second-quarter sales of $400.4 million. Higher demand in the
off-highway, heavy truck and rail sectors drove most of the
increase, as well as favorable currency exchange.
The Mobile segment generated EBIT of $66.8 million in the second quarter of 2011, down
3 percent compared with the prior year’s record EBIT of
$68.6 million. Offsetting the current
period's stronger volume were higher material and logistics costs
and a charge of approximately $5
million related to the previously announced closure of a
facility in Brazil.
For the first half of 2011, Mobile Industries’ sales rose 18
percent to $908.2 million from the
same period a year ago. First-half 2011 EBIT was $134.8 million, or 14.8 percent of sales,
compared with $108.2 million, or 14.1
percent of sales, the prior year.
Process Industries Segment Results
Process Industries' second-quarter sales rose 46 percent to
$308.3 million, compared with
$211.6 million for the same
period a year ago. The sales increase was driven by higher demand
from industrial distribution, growth in Asia, increased sales of new products and a
modest improvement in demand from the capital equipment sector.
Pricing, mix and currency also contributed to the
improvement.
Process Industries' second-quarter EBIT was $70.3 million, up 148 percent from
$28.3 million a year ago. Higher
volume, favorable pricing and mix contributed to the increase, more
than offsetting higher material costs.
For the first half of 2011, Process Industries sales were
$593.3 million, up 42 percent
from the same period a year ago. First-half 2011 EBIT was
$137 million, or 23.1 percent of
sales, up from the prior year's EBIT of $52.4 million, or 12.5 percent of sales.
Aerospace and Defense Segment Results
Aerospace and Defense had second-quarter sales of $83.5 million, up 1 percent from
$82.7 million for the same
period last year, as increased commercial demand was offset by
lower demand for the company’s defense-related products.
Second-quarter EBIT was $3.3 million, down 46 percent from
$6.1 million a year ago. The
decline reflects a write-down of approximately $3 million in aftermarket inventory.
For the first half of 2011, Aerospace and Defense sales were
$162.6 million, down 7 percent from
the same period a year ago. The decrease primarily reflects lower
demand in the segment’s defense-related business. First-half 2011
EBIT was $5.5 million, or 3.4 percent
of sales, compared with EBIT of $18
million, or 10.3 percent of sales, in the first half of
2010. The decline was driven by lower demand, unfavorable
manufacturing utilization and the second-quarter inventory
write-down.
Steel Segment Results
Sales for the Steel segment, including inter-segment sales, were
$505.1 million in the second
quarter, an increase of 49 percent from $338.1 million for the same period last
year. Stronger demand, particularly in the oil and gas and
industrial market sectors, and surcharges contributed to the
improvement. Raw-material surcharges increased approximately
$50 million from the second quarter
last year.
Second-quarter EBIT was $72.1 million, up 68 percent from
$43 million for the same period a
year ago. The benefits from improved volume, mix, surcharges and
pricing were partially offset by higher material costs.
For the first six months of 2011, Steel segment sales were
$986.6 million, up 62 percent
from the first half of last year. Stronger demand, particularly in
the oil and gas and industrial market sectors, and surcharges
contributed to the improvement. Raw-material surcharges increased
approximately $125 million from the
same period a year ago. EBIT for the first half of 2011 was
$132.1 million, or 13.4 percent of
sales, compared with $62.9 million, or 10.3 percent of sales, for
the same period a year ago.
Outlook
Timken now expects a full-year sales increase of 25 to 30
percent in 2011 over 2010. The revised outlook reflects the
company's second-quarter performance and stronger-than-expected
demand in its Steel and Process Industries segments, as well as the
benefit expected from the Philadelphia Gear acquisition for the
remainder of the year. For each of its business segments in 2011,
Timken expects:
- Mobile Industries sales up 10 to 15 percent, with higher demand
in the off-highway, rail and heavy-truck sectors;
- Process Industries sales up 30 to 35 percent, with increased
demand from global industrial distribution, higher new-product
sales, growth in Asia and the
Philadelphia Gear acquisition;
- Aerospace and Defense sales to be up slightly on modest
improvement in the commercial aerospace and health and positioning
control sectors, partially offset by lower demand for the company’s
defense-related products; and
- Steel sales up 40 to 45 percent, driven by demand across all
sectors, as well as capacity increases and surcharges.
The company is raising its 2011 full-year earnings estimate to a
range of $4.30 to $4.50 per diluted share from its prior estimate
of $3.80 to $4.10 per diluted share.
The increase reflects the company’s record first-half results and
improved outlook. The company expects cash from operating
activities to be approximately $275
million, and a free cash flow use of approximately
$10 million after capital expenditures of roughly $210 million and dividends of approximately
$75 million. Excluding
discretionary pension and VEBA trust contributions of
$193 million, net of tax, made in the first half of 2011, free
cash flow is expected to be approximately $180 million.
Conference Call Information
The company will host a conference call for investors and
analysts today to discuss its financial results.
Conference Call:
|
Thursday, July 28,
2011
|
|
|
11:00 a.m. Eastern
Time
|
|
|
|
|
Live Dial-In:
|
800-344-0593 or
706-634-0975
|
|
|
(Call in 10 minutes prior to be
included.)
|
|
|
Conference ID:
15485955
|
|
|
|
|
|
Replay Dial-In through August 5,
2011:
|
|
|
800-642-1687 or
706-645-9291
|
|
|
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|
Live Webcast:
|
www.timken.com/investors
|
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|
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com) keeps the world
turning with innovative friction management and power transmission
products and services that are critical to help hard-working
machinery perform efficiently and reliably. With sales of
$4.1 billion in 2010 and
operations in 29 countries with approximately 20,000 people, 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, including
information under the heading "Outlook", 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 2011; 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, 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 last-in,
first-out accounting; weakness in global economic conditions and
financial markets; changes in the expected costs associated with
product warranty claims; the ability to integrate acquired
companies to achieve satisfactory operating results, including
Philadelphia Gear Corp.; the impact on operations of general
economic conditions; higher or lower raw material and energy costs;
and fluctuations in customer demand. Additional factors are
discussed in the company's filings with the Securities and Exchange
Commission, including the company's Annual Report on Form 10-K for
the year ended Dec. 31, 2010,
quarterly reports on Form 10-Q and current reports on form 8-K. The
company undertakes no obligation to update or revise any
forward-looking statement.
Media Contact: Lorrie Paul
Crum
Manager – Global Media and
Strategic Communications
Mail Code: GNW-37
1835 Dueber Avenue, S.W.
Canton, OH 44706 U.S.A.
Office Phone: (330) 471-3514
Mobile Phone: (330) 224-5021
lorrie.crum@timken.com
Investor Contact: Steve
Tschiegg
Director – Capital Markets and
Investor Relations
Mail Code: GNE-26
1835 Dueber Avenue, S.W.
Canton, OH 44706 U.S.A.
Office Phone: (330) 471-7446
Facsimile: (330) 471-2797
steve.tschiegg@timken.com
The Timken
Company
|
|
CONDENSED CONSOLIDATED STATEMENT
OF INCOME
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
June 30,
|
Six Months
Ended
June 30,
|
|
(Dollars in millions, except
share data)
|
2011
|
2010
|
2011
|
2010
|
|
Net sales
|
$
1,329.6
|
$
1,011.4
|
$
2,583.7
|
$
1,925.1
|
|
Cost of products sold
|
979.1
|
743.1
|
1,899.9
|
1,434.1
|
|
|
Gross Profit
|
350.5
|
268.3
|
683.8
|
491.0
|
|
Selling, general &
administrative expenses (SG&A)
|
153.7
|
140.7
|
304.0
|
273.7
|
|
Impairment and
restructuring
|
6.2
|
1.0
|
7.3
|
6.5
|
|
|
Operating Income
|
190.6
|
126.6
|
372.5
|
210.8
|
|
Other income (expense),
net
|
1.1
|
2.7
|
(1.3)
|
2.1
|
|
|
Earnings Before Interest and
Taxes (EBIT) (1)
|
191.7
|
129.3
|
371.2
|
212.9
|
|
Interest expense, net
|
(7.9)
|
(9.1)
|
(16.2)
|
(18.1)
|
|
|
Income From Continuing
Operations
|
183.8
|
120.2
|
355.0
|
194.8
|
|
Provision for income
taxes
|
61.5
|
38.2
|
118.9
|
84.1
|
|
|
Income From Continuing
Operations
|
122.3
|
82.0
|
236.1
|
110.7
|
|
Income from discontinued
operations, net of income taxes (2)
|
-
|
4.2
|
-
|
4.5
|
|
|
Net Income
|
122.3
|
86.2
|
236.1
|
115.2
|
|
|
|
Less: Net Income Attributable to
Noncontrolling Interest
|
0.8
|
0.6
|
1.9
|
1.0
|
|
|
Net Income Attributable to The
Timken Company
|
$
121.5
|
$
85.6
|
$
234.2
|
$
114.2
|
|
|
|
|
|
|
|
|
|
Net Income per Common Share
Attributable to The Timken Company Common
Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Share
- Continuing Operations
|
$
1.24
|
$
0.84
|
$
2.39
|
$
1.13
|
|
|
Basic Earnings Per Share
- Discontinued
Operations
|
-
|
0.04
|
-
|
0.05
|
|
|
|
Earnings Per
Share
|
$
1.24
|
$
0.88
|
$
2.39
|
$
1.18
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share
- Continuing Operations
|
$
1.22
|
$
0.84
|
$
2.36
|
$
1.13
|
|
|
Diluted Earnings Per Share
- Discontinued
Operations
|
-
|
0.04
|
-
|
0.04
|
|
|
|
Earnings Per
Share
|
$
1.22
|
$
0.88
|
$
2.36
|
$
1.17
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
97,644,773
|
96,305,087
|
97,552,528
|
96,336,974
|
|
Average Shares Outstanding -
assuming dilution
|
98,899,992
|
97,021,172
|
98,905,856
|
96,945,649
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENTS
(unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
Six Months
Ended
June 30,
|
|
|
(Dollars in millions, except
share data)
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
|
|
Mobile Industries
Segment
|
|
|
|
|
|
|
Net sales to external
customers
|
$
465.1
|
$
400.4
|
$
908.0
|
$
767.9
|
|
|
Intersegment sales
|
0.1
|
-
|
0.2
|
-
|
|
|
Total net sales
|
$
465.2
|
$
400.4
|
$
908.2
|
$
767.9
|
|
|
Earnings before interest and
taxes (EBIT) (1)
|
$
66.8
|
$
68.6
|
$
134.8
|
$
108.2
|
|
|
EBIT Margin (1)
|
14.4%
|
17.1%
|
14.8%
|
14.1%
|
|
|
|
|
|
|
|
|
|
Process Industries
Segment
|
|
|
|
|
|
|
Net sales to external
customers
|
$
307.5
|
$
211.0
|
$
591.6
|
$
416.9
|
|
|
Intersegment sales
|
0.8
|
0.6
|
1.7
|
1.3
|
|
|
Total net sales
|
$
308.3
|
$
211.6
|
$
593.3
|
$
418.2
|
|
|
Earnings before interest and
taxes (EBIT) (1)
|
$
70.3
|
$
28.3
|
$
137.0
|
$
52.4
|
|
|
EBIT Margin (1)
|
22.8%
|
13.4%
|
23.1%
|
12.5%
|
|
|
|
|
|
|
|
|
|
Aerospace and Defense
Segment
|
|
|
|
|
|
|
Net sales to external
customers
|
$
83.5
|
$
82.7
|
$
162.6
|
$
174.8
|
|
|
Earnings before interest and
taxes (EBIT) (1)
|
$
3.3
|
$
6.1
|
$
5.5
|
$
18.0
|
|
|
EBIT Margin (1)
|
4.0%
|
7.4%
|
3.4%
|
10.3%
|
|
|
|
|
|
|
|
|
|
Steel Segment
|
|
|
|
|
|
|
Net sales to external
customers
|
$
473.5
|
$
317.3
|
$
921.5
|
$
565.5
|
|
|
Intersegment sales
|
31.6
|
20.8
|
65.1
|
42.9
|
|
|
Total net sales
|
$
505.1
|
$
338.1
|
$
986.6
|
$
608.4
|
|
|
Earnings before interest and
taxes (EBIT) (1)
|
$
72.1
|
$
43.0
|
$
132.1
|
$
62.9
|
|
|
EBIT Margin (1)
|
14.3%
|
12.7%
|
13.4%
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated corporate
expense
|
$
(20.4)
|
$
(17.8)
|
$
(38.4)
|
$
(32.2)
|
|
|
Intersegment eliminations income
(expense) (3)
|
$
(0.4)
|
$
1.1
|
$
0.2
|
$
3.6
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Net sales to external
customers
|
$
1,329.6
|
$
1,011.4
|
$
2,583.7
|
$
1,925.1
|
|
|
Earnings before interest and
taxes (EBIT) (1)
|
$
191.7
|
$
129.3
|
$
371.2
|
$
212.9
|
|
|
EBIT Margin (1)
|
14.4%
|
12.8%
|
14.4%
|
11.1%
|
|
|
|
|
|
|
|
|
(1)
|
EBIT is defined as operating
income plus other income (expense). EBIT Margin is EBIT as a
percentage of net sales. 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 useful to
investors.
|
|
|
|
|
(2)
|
Discontinued Operations relate
to the sale of the Needle Roller Bearings (NRB) operations to JTEKT
Corporation on December 31, 2009.
|
|
|
|
|
(3)
|
Intersegment eliminations
represent profit or loss between the Steel segment and the Mobile
Industries, Process Industries and Aerospace and Defense
segments.
|
|
|
|
|
|
|
|
Reconciliation of GAAP income
from continuing operations before income
taxes
|
|
This reconciliation is provided
as additional relevant information about the company's performance.
Management believes consolidated earnings before interest and
taxes (EBIT) are representative of the company's performance and
therefore useful to investors. Consolidated earnings before
interest, taxes, depreciation and amortization (EBITDA) are another
important measure of financial performance and cash generation of
the business and therefore useful to investors. Management
also believes that it is appropriate to compare GAAP income from
continuing operations before income taxes to consolidated EBIT and
EBITDA.
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
Income from continuing
operations before income taxes
|
$
183.8
|
$
120.2
|
|
$
355.0
|
$
194.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax reconciling
items:
|
|
|
|
|
|
|
Interest expense
|
9.3
|
10.0
|
|
19.1
|
19.6
|
|
Interest income
|
(1.4)
|
(0.9)
|
|
(2.9)
|
(1.5)
|
|
Consolidated earnings before
interest and taxes (EBIT)
|
$
191.7
|
$
129.3
|
|
$
371.2
|
$
212.9
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
46.4
|
47.5
|
|
93.8
|
95.2
|
|
Consolidated earnings before
interest, taxes, depreciation and amortization
(EBITDA)
|
$
238.1
|
$
176.8
|
|
$
465.0
|
$
308.1
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Debt to
Net Debt and the Ratio of Net Debt to
Capital:
|
|
(Dollars in millions)
(Unaudited)
|
|
|
|
|
June
30,
2011
|
|
December
31,
2010
|
|
Short-term debt
|
|
|
|
|
$
30.3
|
|
$
32.0
|
|
Long-term debt
|
|
|
|
|
490.6
|
|
481.7
|
|
Total Debt
|
|
|
|
|
520.9
|
|
513.7
|
|
Less: Cash, cash equivalents and
restricted cash
|
|
|
|
|
(637.6)
|
|
(877.1)
|
|
Net (Cash) Debt
|
|
|
|
|
$
(116.7)
|
|
$
(363.4)
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
$
2,206.3
|
|
$
1,941.8
|
|
|
|
|
|
|
|
|
|
|
Ratio of Total Debt to
Capital
|
|
|
|
|
19.1%
|
|
20.9%
|
|
Ratio of Net (Cash) Debt to
Capital (Leverage)
|
|
|
|
|
(5.6%)
|
|
(23.0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This reconciliation is provided
as additional relevant information about The Timken Company's
financial position. Capital is defined as total debt plus
total shareholders' equity. Restricted cash is $4.8 million
at June 30, 2011.
|
|
Management believes Net (Cash)
Debt is an important measure of Timken's financial position, due to
the amount of cash and cash equivalents.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
Free cash flow:
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
$
34.7
|
|
$
177.9
|
|
$
(162.9)
|
|
$
164.0
|
|
Less: capital
expenditures
|
(39.5)
|
|
(25.0)
|
|
(59.6)
|
|
(39.0)
|
|
Less: cash dividends paid to
shareholders
|
(19.5)
|
|
(12.6)
|
|
(37.1)
|
|
(21.3)
|
|
Free cash flow
|
$
(24.3)
|
|
$
140.3
|
|
$
(259.6)
|
|
$
103.7
|
|
Plus: discretionary pension and
postretirement benefit
contributions, net of the tax
benefit (4)
|
94.8
|
|
-
|
|
192.8
|
|
63.2
|
|
Free cash flow less
discretionary contributions
|
$
70.5
|
|
$
140.3
|
|
$
(66.8)
|
|
$
166.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management believes that free
cash flow and free cash flow less discretionary pension and
postretirement contributions are useful to investors because they
are meaningful indicators of cash generated from operating
activities available for the execution of its business
strategy.
|
|
|
|
(4)
|
The discretionary pension and
postretirement benefit contributions for the second quarter of 2011
were $150.0 million, net of a tax benefit of $55.2 million.
The discretionary pension and postretirement benefit
contributions for the first six months of 2011 were $301.4 million,
net of a tax benefit of $108.6 million. The discretionary
pension and postretirement benefit contributions for the first six
months of 2010 were $100.0 million, net of a tax benefit of $36.8
million. There were no discretionary pension and
postretirement benefit contributions in the second quarter of
2010.
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEET
|
|
|
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
June
30,
2011
|
December
31,
2010
|
|
|
|
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
632.8
|
$
877.1
|
|
|
|
Accounts receivable
|
718.8
|
516.6
|
|
|
|
Inventories, net
|
928.9
|
828.5
|
|
|
|
Other current assets
|
190.3
|
177.0
|
|
|
|
Total Current
Assets
|
2,470.8
|
2,399.2
|
|
|
|
Property, Plant and Equipment -
Net
|
1,243.1
|
1,267.7
|
|
|
|
Goodwill
|
226.5
|
224.4
|
|
|
|
Other assets
|
234.7
|
289.1
|
|
|
Total Assets
|
$
4,175.1
|
$
4,180.4
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Accounts payable
|
$
314.6
|
$
263.5
|
|
|
|
Short-term debt
|
30.3
|
32.0
|
|
|
|
Income taxes
|
24.4
|
14.7
|
|
|
|
Accrued expenses
|
386.6
|
409.7
|
|
|
|
|
Total Current
Liabilities
|
755.9
|
719.9
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
490.6
|
481.7
|
|
|
|
Accrued pension cost
|
154.0
|
394.5
|
|
|
|
Accrued postretirement benefits
cost
|
448.7
|
531.2
|
|
|
|
Other non-current
liabilities
|
119.6
|
111.3
|
|
|
|
|
Total Liabilities
|
1,968.8
|
2,238.6
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
The Timken Company shareholders'
equity
|
2,188.7
|
1,925.0
|
|
|
|
Noncontrolling
Interest
|
17.6
|
16.8
|
|
|
|
|
Total Equity
|
2,206.3
|
1,941.8
|
|
|
Total Liabilities and
Equity
|
$
4,175.1
|
$
4,180.4
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS
|
|
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
June 30,
|
|
Six months
ended
June 30,
|
|
|
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
Cash Provided
(Used)
|
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
Net income attributable to The
Timken Company
|
$
121.5
|
$
85.6
|
|
$
234.2
|
$
114.2
|
|
|
Income from discontinued
operations
|
-
|
(4.2)
|
|
-
|
(4.5)
|
|
|
Net income attributable to
noncontrolling interest
|
0.8
|
0.6
|
|
1.9
|
1.0
|
|
|
Adjustments to reconcile net
income to net cash
|
|
|
|
|
|
|
|
|
provided (used) by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
46.4
|
47.5
|
|
93.8
|
95.2
|
|
|
|
|
Impairment charges
|
1.4
|
-
|
|
3.2
|
-
|
|
|
|
|
Pension and other postretirement
expense
|
14.9
|
20.7
|
|
37.2
|
45.9
|
|
|
|
|
Pension and other postretirement
benefit contributions and payments
|
(165.8)
|
(14.9)
|
|
(331.8)
|
(133.6)
|
|
|
|
|
Changes in operating assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
(42.1)
|
(21.7)
|
|
(191.7)
|
(103.8)
|
|
|
|
|
|
Inventories
|
(6.2)
|
(23.2)
|
|
(86.6)
|
(45.7)
|
|
|
|
|
|
Accounts payable
|
(7.9)
|
1.0
|
|
46.9
|
67.5
|
|
|
|
|
|
Accrued expenses
|
42.2
|
23.2
|
|
(38.8)
|
15.4
|
|
|
|
|
|
Income taxes
|
20.7
|
39.0
|
|
62.0
|
83.2
|
|
|
|
|
|
Other - net
|
8.8
|
20.1
|
|
6.8
|
24.7
|
|
|
Net Cash Provided (Used) by
Operating Activities - Continuing Operations
|
34.7
|
173.7
|
|
(162.9)
|
159.5
|
|
|
Net Cash Provided by Operating
Activities - Discontinued Operations
|
-
|
4.2
|
|
-
|
4.5
|
|
|
|
Net Cash Provided (Used) By
Operating Activities
|
34.7
|
177.9
|
|
(162.9)
|
164.0
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Capital expenditures
|
(39.5)
|
(25.0)
|
|
(59.6)
|
(39.0)
|
|
|
Investments - net
|
-
|
-
|
|
(13.3)
|
-
|
|
|
Divestitures
|
|
4.8
|
-
|
|
4.8
|
-
|
|
|
Other
|
5.9
|
2.7
|
|
7.1
|
1.6
|
|
|
|
Net Cash Used by Investing
Activities
|
(28.8)
|
(22.3)
|
|
(61.0)
|
(37.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Cash dividends paid to
shareholders
|
(19.5)
|
(12.6)
|
|
(37.1)
|
(21.3)
|
|
|
Purchase of treasury shares,
net
|
-
|
(15.2)
|
|
(25.3)
|
(29.2)
|
|
|
Net proceeds from common share
activity
|
8.0
|
11.1
|
|
23.2
|
19.4
|
|
|
Net proceeds from credit
facilities
|
(2.1)
|
(22.5)
|
|
6.2
|
(18.8)
|
|
|
Other
|
(4.4)
|
-
|
|
(8.9)
|
-
|
|
|
|
Net Cash Used by Financing
Activities
|
(18.0)
|
(39.2)
|
|
(41.9)
|
(49.9)
|
|
Effect of exchange rate changes
on cash
|
7.3
|
(29.5)
|
|
21.5
|
(36.0)
|
|
|
|
(Decrease) Increase In Cash and
Cash Equivalents
|
(4.8)
|
86.9
|
|
(244.3)
|
40.7
|
|
Cash and cash equivalents at
beginning of period
|
637.6
|
709.3
|
|
877.1
|
755.5
|
|
|
|
Cash and Cash Equivalents at End
of Period
|
$
632.8
|
$
796.2
|
|
$
632.8
|
$
796.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE The Timken Company