The Timken Company (NYSE:TKR) today reported sales of $1.26 billion in the third quarter of 2007, an increase of 6 percent over the same period a year ago. Strong sales in industrial markets were partially offset by the strategic divestment of the company's automotive steering and European steel tube manufacturing operations in prior periods. The company achieved third-quarter income from continuing operations of $41.2 million, or $0.43 per diluted share, up from $38.7 million, or $0.41 per diluted share, in last year's third quarter.
Excluding special items, income from continuing operations per diluted share was $0.51 during the third quarter of 2007, compared to $0.49 in the prior-year quarter. Third-quarter special items included restructuring, rationalization and impairment charges totaling $17.2 million of pretax expense, compared to $7.1 million of similar charges in the third quarter of 2006.
"While Timken's third-quarter performance exceeded what we achieved last year, our results still fell short of what we had expected to deliver," said James W. Griffith, Timken's president and chief executive officer. "As we move forward with our strategic initiatives, we have intensified our efforts to drive better execution across the company during a period of strong demand in multiple market sectors."
During the quarter, the company:
-- Made progress on its restructuring initiatives and Project O.N.E., a program designed to improve business processes and systems;
-- Realigned operations under two major business groups, the Steel Group and the Bearings and Power Transmission Group, taking advantage of the Project O.N.E. capabilities to drive improvement in operational performance. The company will report its financial results using different segmentation beginning with the fourth quarter of 2007; and
-- Announced the acquisition of the assets of The Purdy Corp. for $200 million, which was completed on Oct. 22, expanding the range of power-transmission products and capabilities Timken provides to the aerospace sector.
For the first nine months of 2007, sales were $3.89 billion, an increase of 4 percent from the same period in the prior year, driven by strong industrial markets. Income from continuing operations per diluted share for the first nine months of 2007 was $1.79 compared to $1.70 in the same period a year ago. The company's performance benefited from higher volume and improved pricing, which were partially offset by higher raw-material, manufacturing and logistics costs.
Special items in the first nine months of 2007 totaled $60.8 million of pretax expense, compared to $32.9 million in the same period a year ago, and included restructuring, rationalization and impairment charges. The nine-month period also included a one-time tax gain of $32.1 million due to a change in tax law during the first quarter of 2007. Excluding these items, income from continuing operations per diluted share in the first nine months of 2007 was $1.89, compared to $1.91 during the same period in 2006.
Total debt was $601.4 million as of Sept. 30, 2007, or 25.5 percent of capital. Net debt at Sept. 30, 2007, was $513.6 million, or 22.6 percent of capital, compared to $496.8 million, or 25.2 percent, as of Dec. 31, 2006. Year-to-date, the increase in net debt was primarily due to higher working capital requirements, driven by strong demand, and increased capital expenditures in support of growth initiatives.
Industrial Group Results
The Industrial Group had third-quarter sales of $556.8 million, up 11 percent from $501.8 million for the same period last year. The increase resulted from favorable pricing, currency and strong demand across all market sectors, especially from heavy industry and aerospace.
The Industrial Group's earnings before interest and taxes (EBIT) in the third quarter were $55.4 million, compared to $48.2 million for the same period last year. EBIT performance in the quarter benefited from strong volume and pricing, which were partially offset by higher raw-material costs. The group also experienced higher manufacturing and logistics costs primarily associated with capacity additions and managing strong demand through constrained facilities, compared to the year-ago period.
For the first nine months of 2007, Industrial Group sales were $1.67 billion, up 9 percent from the same period a year ago. EBIT for the first nine months of 2007 was $166.3 million, compared to $157.6 million for the prior-year period.
Automotive Group Results
The Automotive Group's third-quarter sales of $361.0 million were down 1 percent from $363.6 million for the same period last year. Increased sales during the quarter in Europe and in the North American light-vehicle market were offset by the 2006 divestment of the group's steering business and lower North American heavy-truck demand.
The Automotive Group incurred a loss of $20.7 million in the third quarter of 2007 compared to a loss of $26.3 million for the same period a year ago. The group's results benefited from ongoing restructuring efforts but were below expectations due primarily to higher manufacturing and raw-material costs.
For the first nine months of 2007, Automotive Group sales of $1.16 billion were down 5 percent from the same period a year ago. The group recorded a loss of $35.3 million for the first nine months of 2007, compared to a loss of $31.4 million for the prior-year period.
Steel Group Results
Steel Group third-quarter sales, including inter-segment sales, were $381.1 million, up 7 percent from $355.6 million for the same period a year ago. The increase was driven by strong demand across all market sectors, surcharges and favorable mix, which more than offset the impact of exiting the group's steel tube manufacturing operations in Europe earlier this year.
Third-quarter EBIT was $47.4 million, compared to $50.4 million for the same period last year. Compared to a year ago, the group's performance benefited from higher volume and surcharges, which were more than offset by increased raw-material and manufacturing costs, as well as an increase in the group's LIFO reserves.
For the first nine months of 2007, Steel Group sales were $1.18 billion, up 6 percent from the same period last year. EBIT for the first nine months of 2007 was $170.4 million, compared to EBIT of $167.2 million for the prior-year period.
Outlook
Timken anticipates strong global industrial demand, while automotive demand is expected to remain stable. The combination of strong industrial markets, capacity additions and operating improvements is expected to drive stronger performance.
The company anticipates earnings per diluted share for 2007 from continuing operations, excluding special items, to be $2.40 to $2.50, compared to $2.13 for 2006.
Conference Call Information
The company will host a conference call for investors and analysts today to discuss financial results.
Conference Call: Thursday, Oct. 25, 2007
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: 5457306
Replay Dial-In through Nov. 2, 2007:
800-642-1687 or 706-645-9291
Live Webcast: www.timken.com/investors
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(TM) 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 financial performance, including the 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 completion of the company's financial statements for the third quarter of 2007; fluctuations in raw-material and energy costs and the operation of the company's surcharge mechanisms; the company's ability to respond to the changes in its end markets, especially the North American automotive industry; changes in the financial health of the company's customers; changes in the expected costs associated with product warranty claims; and the impact on operations of general economic conditions, higher 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 implementation of its Automotive Group 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, 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.
(Unaudited)
CONDENSED
CONSOLIDATED
STATEMENT OF
INCOME AS REPORTED
----------------------------------------------------------------------
(Thousands of
U.S. dollars,
except share
data) Q3 2007 Q3 2006 Nine Months 07 Nine Months 06
----------------------------------------------------------------------
Net sales $1,261,239 $1,185,962 $3,894,983 $3,742,444
Cost of products
sold 1,004,547 950,146 3,069,200 2,934,985
Manufacturing
rationalization/
reorganization
expenses - cost
of products sold 5,382 3,419 27,945 11,400
----------------------------------------------------------------------
Gross Profit $251,310 $232,397 $797,838 $796,059
Selling,
administrative &
general expenses
(SG&A) 169,989 159,635 511,942 501,203
Manufacturing
rationalization/
reorganization
expenses - SG&A 852 1,044 2,831 2,737
(Gain) loss on
divestitures 152 - 468 9,971
Impairment and
restructuring 11,840 2,682 32,870 11,191
----------------------------------------------------------------------
Operating
Income $68,477 $69,036 $249,727 $270,957
Other (expense) (4,834) (1,825) (14,184) (11,519)
Special items -
other income 983 76 3,355 2,430
----------------------------------------------------------------------
Earnings
Before
Interest and
Taxes (EBIT)
(2) $64,626 $67,287 $238,898 $261,868
Interest expense,
net (8,317) (10,850) (24,886) (34,149)
----------------------------------------------------------------------
Income From
Continuing
Operations
Before
Income
Taxes $56,309 $56,437 $214,012 $227,719
Provision for
income taxes 15,066 17,749 42,914 67,049
----------------------------------------------------------------------
Income From
Continuing
Operations $41,243 $38,688 $171,098 $160,670
======================================================================
(Loss) income
from
discontinued
operations net
of income taxes,
special items
(3) - - 665 -
Income from
discontinued
operations net
of income taxes,
other (3) - 7,859 - 26,508
----------------------------------------------------------------------
Net Income $41,243 $46,547 $171,763 $187,178
----------------------------------------------------------------------
Earnings Per
Share -
Continuing
Operations $0.43 $0.41 $1.81 $1.72
Earnings Per
Share -
Discontinued
Operations - 0.09 0.01 0.29
-----------------------------------------------------
Earnings Per
Share $0.43 $0.50 $1.82 $2.01
Diluted
Earnings Per
Share -
Continuing
Operations $0.43 $0.41 $1.79 $1.70
Diluted
Earnings Per
Share -
Discontinued
Operations - 0.08 0.01 0.29
-----------------------------------------------------
Diluted
Earnings
Per Share $0.43 $0.49 $1.80 $1.99
Average Shares
Outstanding 95,029,369 93,500,491 94,494,531 93,239,292
Average Shares
Outstanding -
assuming
dilution 96,095,860 94,376,937 95,483,420 94,238,413
======================================================================
(Unaudited)
CONDENSED
CONSOLIDATED
STATEMENT OF
INCOME ADJUSTED (1)
----------------------------------------------------------------------
(Thousands of
U.S. dollars,
except share
data) Q3 2007 Q3 2006 Nine Months 07 Nine Months 06
----------------------------------------------------------------------
Net sales $1,261,239 $1,185,962 $3,894,983 $3,742,444
Cost of products
sold 1,004,547 950,146 3,069,200 2,934,985
Manufacturing
rationalization/
reorganization
expenses - cost
of products sold - - - -
----------------------------------------------------------------------
Gross Profit $256,692 $235,816 $825,783 $807,459
Selling,
administrative &
general expenses
(SG&A) 169,989 159,635 511,942 501,203
Manufacturing
rationalization/
reorganization
expenses - SG&A - - - -
(Gain) loss on
divestitures - - - -
Impairment and
restructuring - - - -
----------------------------------------------------------------------
Operating
Income $86,703 $76,181 $313,841 $306,256
Other (expense) (4,834) (1,825) (14,184) (11,519)
Special items -
other income - - - -
----------------------------------------------------------------------
Earnings
Before
Interest and
Taxes (EBIT)
(2) $81,869 $74,356 $299,657 $294,737
Interest expense,
net (8,317) (10,850) (24,886) (34,149)
----------------------------------------------------------------------
Income From
Continuing
Operations
Before
Income
Taxes $73,552 $63,506 $274,771 $260,588
Provision for
income taxes 24,954 17,134 93,972 81,055
----------------------------------------------------------------------
Income From
Continuing
Operations $48,598 $46,372 $180,799 $179,533
======================================================================
(Loss) income
from
discontinued
operations net
of income taxes,
special items
(3) - - - -
Income from
discontinued
operations net
of income taxes,
other (3) - 7,859 - 26,508
----------------------------------------------------------------------
Net Income $48,598 $54,231 $180,799 $206,041
----------------------------------------------------------------------
Earnings Per
Share -
Continuing
Operations $0.51 $0.50 $1.91 $1.93
Earnings Per
Share -
Discontinued
Operations - 0.08 - 0.28
-----------------------------------------------------
Earnings Per
Share $0.51 $0.58 $1.91 $2.21
Diluted
Earnings Per
Share -
Continuing
Operations $0.51 $0.49 $1.89 $1.91
Diluted
Earnings Per
Share -
Discontinued
Operations - 0.08 - 0.28
-----------------------------------------------------
Diluted
Earnings
Per Share $0.51 $0.57 $1.89 $2.19
Average Shares
Outstanding 95,029,369 93,500,491 94,494,531 93,239,292
Average Shares
Outstanding -
assuming
dilution 96,095,860 94,376,937 95,483,420 94,238,413
======================================================================
BUSINESS SEGMENTS
----------------------------------------------------------------------
(Thousands of U.S.
dollars)
(Unaudited) Q3 2007 Q3 2006 Nine Months 07 Nine Months 06
----------------------------------------------------------------------
Industrial Group
-------------------
Net sales to
external customers $556,195 $501,347 $1,665,729 $1,533,396
Intersegment sales 601 469 1,453 1,366
-------------------------------------------------
Total net sales $556,796 $501,816 $1,667,182 $1,534,762
Adjusted earnings
before interest
and taxes (EBIT)
(a) (2) $55,365 $48,180 $166,346 $157,557
Adjusted EBIT
Margin (2) 9.9% 9.6% 10.0% 10.3%
Automotive Group
-------------------
Net sales to
external customers $361,032 $363,585 $1,156,147 $1,211,283
Adjusted (loss)
earnings before
interest and taxes
(EBIT) (a) (2) ($20,654) ($26,276) ($35,278) ($31,377)
Adjusted EBIT
(Loss) Margin (2) -5.7% -7.2% -3.1% -2.6%
Steel Group (3)
-------------------
Net sales to
external customers $344,012 $321,030 $1,073,107 $997,765
Intersegment sales 37,100 34,584 109,066 116,555
-------------------------------------------------
Total net sales $381,112 $355,614 $1,182,173 $1,114,320
Adjusted earnings
before interest
and taxes (EBIT)
(a) (2) $47,437 $50,436 $170,358 $167,168
Adjusted EBIT
Margin (2) 12.4% 14.2% 14.4% 15.0%
(a) Industrial Group, Automotive Group and Steel Group EBIT do not
equal Consolidated EBIT due to intersegment adjustments which
are eliminated upon consolidation.
(1) "Adjusted" statements exclude the impact of impairment and
restructuring, manufacturing rationalization/reorganization and
other 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) Discontinued Operations reflects the December 8, 2006 sale of
Timken Latrobe Steel. Steel Group Net sales and Adjusted EBIT
have been changed to exclude Timken Latrobe Steel for all
periods. Income From Discontinued Operations Net of Income
Taxes, Special Items includes the gain on sale. Income From
Discontinued Operations Net of Income Taxes, Other includes
prior activity of Timken Latrobe Steel in accordance with the
sales agreement.
Reconciliation of Total Debt to Net Debt and the Ratio of Net Debt to
Capital:
(Thousands of U.S. Dollars) (Unaudited) Sept 30, 2007 Dec 31, 2006
Short-term debt $74,891 $50,453
Long-term debt 526,521 547,390
--------------------------
Total Debt $601,412 $597,843
Less: Cash and cash equivalents (87,767) (101,072)
--------------------------
Net Debt $513,645 $496,771
==========================
Shareholders' equity $1,754,273 $1,476,180
Ratio of Total Debt to Capital 25.5% 28.8%
Ratio of Net Debt to Capital (Leverage) 22.6% 25.2%
==========================
This reconciliation is provided as additional relevant information
about Timken's financial position. Capital is defined as total debt
plus shareholder's equity. Management believes Net Debt is more
representative of Timken's indicative financial position, due to
the amount of cash and cash equivalents.
Reconciliation of GAAP net income 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.
Third Quarter
--------------------------------
2007 2006
----------------------------------------------------------------------
(Thousands of U.S. dollars, except
share data) (Unaudited) $ EPS $ EPS (1)
----------------------------------------------------------------------
Net income $41,243 $0.43 $46,547 $0.49
Pre-tax special items:
Manufacturing
rationalization/reorganization
expenses - cost of products sold 5,382 0.06 3,419 0.04
Manufacturing
rationalization/reorganization
expenses - SG&A 852 0.01 1,044 0.01
(Gain) loss on divestiture 152 - - -
Impairment and restructuring 11,840 0.12 2,682 0.03
Special items - other (income) (983) (0.01) (76) -
Provision for income taxes (2) (9,888) (0.10) 615 0.01
Income from discontinued operations
net of income taxes, special items
(3) - - - -
--------------------------------
Adjusted net income $48,598 $0.51 $54,231 $0.57
================================
Nine Months
----------------------------------
2007 2006
----------------------------------------------------------------------
(Thousands of U.S. dollars, except
share data) (Unaudited) $ EPS (1) $ EPS
----------------------------------------------------------------------
Net income $171,763 $1.80 $187,178 $1.99
Pre-tax special items:
Manufacturing
rationalization/reorganization
expenses - cost of products sold 27,945 0.29 11,400 0.12
Manufacturing
rationalization/reorganization
expenses - SG&A 2,831 0.03 2,737 0.03
(Gain) loss on divestiture 468 - 9,971 0.11
Impairment and restructuring 32,870 0.34 11,191 0.12
Special items - other (income) (3,355) (0.04) (2,430) (0.03)
Provision for income taxes (2) (51,058) (0.53) (14,006) (0.15)
Income from discontinued operations
net of income taxes, special items
(3) (665) (0.01) - -
----------------------------------
Adjusted net income $180,799 $1.89 $206,041 $2.19
==================================
(1) EPS amounts will not sum due to rounding differences.
(2) Provision for income taxes includes the quarterly or
year-to-date impact of pre-tax special items on our
full year estimated effective tax rate, as well as the
impact of discrete tax items recorded during the quarter
or first nine months.
(3) Discontinued Operations relates to the sale of Latrobe Steel on
December 8, 2006.
Reconciliation of GAAP income from continuing operations and EPS -
diluted.
This reconciliation is provided as additional relevant information
about the company's performance. Management believes adjusted income
from continuing operations 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 income from continuing operations to adjusted income
from continuing operations 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.
Third Quarter
--------------------------------
2007 2006
----------------------------------------------------------------------
(Thousands of U.S. dollars, except
share data) (Unaudited) $ EPS $ EPS (1)
----------------------------------------------------------------------
Income from continuing operations $41,243 $0.43 $38,688 $0.41
Pre-tax special items:
Manufacturing
rationalization/reorganization
expenses - cost of products sold 5,382 0.06 3,419 0.04
Manufacturing
rationalization/reorganization
expenses - SG&A 852 0.01 1,044 0.01
(Gain) loss on divestiture 152 - - -
Impairment and restructuring 11,840 0.12 2,682 0.03
Special items - other (income) (983) (0.01) (76) -
Provision for income taxes (2) (9,888) (0.10) 615 0.01
--------------------------------
Adjusted income from continuing
operations $48,598 $0.51 $46,372 $0.49
================================
Nine Months
-----------------------------------
2007 2006
----------------------------------------------------------------------
(Thousands of U.S. dollars, except
share data) (Unaudited) $ EPS (1) $ EPS (1)
----------------------------------------------------------------------
Income from continuing operations $171,098 $1.79 $160,670 $1.70
Pre-tax special items:
Manufacturing
rationalization/reorganization
expenses - cost of products sold 27,945 0.29 11,400 0.12
Manufacturing
rationalization/reorganization
expenses - SG&A 2,831 0.03 2,737 0.03
(Gain) loss on divestiture 468 - 9,971 0.11
Impairment and restructuring 32,870 0.34 11,191 0.12
Special items - other (income) (3,355) (0.04) (2,430) (0.03)
Provision for income taxes (2) (51,058) (0.53) (14,006) (0.15)
-----------------------------------
Adjusted income from continuing
operations $180,799 $1.89 $179,533 $1.91
===================================
(1) EPS amounts will not sum due to rounding differences.
(2) Provision for income taxes includes the quarterly or
year-to-date impact of pre-tax special items on our full year
estimated effective tax rate, as well as the impact of discrete
tax items recorded during the quarter or first nine months.
Reconciliation of Outlook Information.
Expected earnings per diluted share for the 2007 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 2007 and if so, in what amount.
----------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET Sept 30 Dec 31
(Thousands of U.S. dollars) (Unaudited) 2007 2006
----------------------------------------------------------------------
ASSETS
Cash & cash equivalents $87,767 $101,072
Accounts receivable 734,771 673,428
Inventories 1,021,961 952,310
Deferred income taxes 66,583 85,576
Other current assets 107,286 87,894
----------------------------------------------------------------------
Total Current Assets $2,018,368 $1,900,280
Property, plant & equipment 1,644,965 1,601,559
Goodwill 215,778 201,899
Other assets 317,941 327,795
----------------------------------------------------------------------
Total Assets $4,197,052 $4,031,533
======================================================================
LIABILITIES
Accounts payable & other liabilities $502,458 $506,301
Short-term debt 74,891 50,453
Income taxes 19,082 53,406
Accrued expenses 211,599 225,409
----------------------------------------------------------------------
Total Current Liabilities $808,030 $835,569
Long-term debt 526,521 547,390
Accrued pension cost 328,023 410,438
Accrued postretirement benefits cost 681,762 682,934
Other non-current liabilities 98,443 79,022
----------------------------------------------------------------------
Total Liabilities $2,442,779 $2,555,353
SHAREHOLDERS' EQUITY 1,754,273 1,476,180
----------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $4,197,052 $4,031,533
======================================================================
CONDENSED CONSOLIDATED For the three For the nine
STATEMENT OF CASH FLOWS months ended months ended
(Thousands of U.S. dollars) Sept 30 Sept 30 Sept 30 Sept 30
(Unaudited) 2007 2006 2007 2006
----------------------------------------------------------------------
Cash Provided (Used)
OPERATING ACTIVITIES
Net Income $41,243 $46,547 $171,763 $187,178
Loss (earnings) from
discontinued operations - (7,859) (665) (26,508)
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization 58,120 47,748 160,595 145,126
Pension and other
postretirement expense 30,213 37,088 92,487 117,020
Pension and other
postretirement benefit
payments (40,440) (57,438) (138,984) (189,306)
Accounts receivable 36,320 60,635 (39,937) (15,330)
Inventories (23,248) (36,415) (34,766) (65,572)
Accounts payable and
accrued expenses (20,752) (10,022) (45,135) (21,948)
Income taxes 11,779 (29,205) 17,696 878
Other 3,019 7,101 3,158 (942)
-----------------------------------------
Net Cash Provided by
Operating Activities -
Continuing Operations $96,254 $58,180 $186,212 $130,596
Net Cash (Used) Provided by
Operating Activities -
Discontinued Operations 0 15,359 665 41,755
-----------------------------------------
Net Cash Provided by
Operating Activities $96,254 $73,539 $186,877 $172,351
INVESTING ACTIVITIES
Capital expenditures ($71,395) ($73,261) ($196,374) ($175,224)
Other 940 4,896 12,897 6,168
Divestments - - - (2,723)
Acquisitions - (4,299) (1,523) (4,299)
-----------------------------------------
Net Cash (Used) by Investing
Activities - Continuing
Operations ($70,455) ($72,664) ($185,000) ($176,078)
Net Cash (Used) by Investing
Activities - Dicontinued
Operations 0 (1,229) 0 (4,205)
-----------------------------------------
Net Cash (Used) by
Investing Activities ($70,455) ($73,893) ($185,000) ($180,283)
FINANCING ACTIVITIES
Cash dividends paid to
shareholders ($16,281) ($15,048) ($46,682) ($43,170)
Net proceeds from common
share activity 6,342 3,967 36,987 22,066
Net (payments) borrowings
on credit facilities (7,006) 26,847 (14,859) 15,122
-----------------------------------------
Net Cash (Used) by Financing
Activities - Continuing
Operations ($16,945) $15,766 ($24,554) ($5,982)
Net Cash (Used) by
Financing Activities ($16,945) $15,766 ($24,554) ($5,982)
Effect of exchange rate
changes on cash $5,574 ($94) $9,372 $2,567
(Decrease) in Cash and Cash
Equivalents 14,428 15,318 (13,305) (11,347)
Cash and Cash Equivalents at
Beginning of Period $73,339 $38,752 $101,072 $65,417
-----------------------------------------
Cash and Cash Equivalents at
End of Period $87,767 $54,070 $87,767 $54,070
=========================================
Contacts:
Media Contact:
Jeff Dafler, 330-471-3514
Manager
– Global Media &
Government Relations
Facsimile:
330-471-7032
jeff.dafler@timken.com
or
Investor
Contact:
Steve Tschiegg, 330-471-7446
Manager –
Investor Relations
Facsimile: 330-471-2797
steve.tschiegg@timken.com
or
For
Additional Information:
www.timken.com/media
www.timken.com/investors
