The Timken Company (NYSE:TKR) today announced changes to align the company around continued improvement in operational performance and acceleration of profitable growth.
Under the new model, Timken will operate with two major business groups, the Steel Group and the Bearings and Power Transmission Group, which is composed of four divisions – Mobile Industries, Process Industries, Aerospace & Defense and Distribution & Services. The company has named Michael C. Arnold as executive vice president and president, Bearings and Power Transmission Group. Salvatore J. Miraglia, Jr., will continue as president of the Steel Group.
Timken has also named Jacqueline A. Dedo senior vice president, Innovation and Growth. In this role, Dedo will be responsible for leading the company’s strategic initiatives to accelerate the pace of innovation and growth.
"With focused leadership and a strong balance sheet, we are well positioned to aggressively pursue growth opportunities with the potential to create exceptional value for customers and shareholders," said James W. Griffith, Timken’s president and chief executive officer. "In addition, as we implement this model, we expect to benefit from faster, more effective decision-making and less complexity in all parts of our business, allowing us to drive further improvement in our financial performance.”
The organizational changes are focused primarily on improving Timken’s operating effectiveness and are also anticipated to streamline operations and eliminate redundancies. When fully implemented, the company expects to save approximately $10 million to $20 million as a result of the changes.
Timken’s new Bearings and Power Transmission Group includes four divisions:
- Mobile Industries – composed of the rail, off-highway, agriculture, heavy truck and passenger car and light truck market sectors;
- Process Industries – encompasses the heavy industry, power transmission and energy market sectors;
- Aerospace & Defense – serves the friction-management and power-transmission needs of commercial and military aviation customers through original equipment manufacturers and the aerospace aftermarket; and
- Distribution & Services – provides a full range of bearings, seals, grease, condition monitoring and other products and services through distributors worldwide.
Timken will report its third-quarter 2007 financial results using the existing Steel, Industrial and Automotive Groups. Beginning with the fourth quarter of 2007, the company expects to make a change to its financial reporting, providing results for the Steel Group as before, along with more detailed results for the new Bearings and Power Transmission Group.
About The Timken Company
The Timken Company (NYSE: TKR, http://www.timken.com) keeps the world turning, with innovative friction management and power transmission products and services, enabling our customers to perform faster and more efficiently. With sales of $5.0 billion in 2006, operations in 26 countries and approximately 25,000 employees, Timken is Where You Turn™ for better performance.
Certain statements in this news release (including statements regarding the company's 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 expected savings of the company’s programs and initiatives and expectations regarding the company’s financial performance 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 company's ability to achieve the benefits of its future and ongoing programs and initiatives, including, without limitation, the organization changes announced in this release. Additional important factors are described in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2006, page 40, and in the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.The company undertakes no obligation to update or revise any forward-looking statement.
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