Timken Co

Latest Results (26.12.2024):

Sales Performance

In the third quarter of 2024, Timken Co reported sales of $1.13 billion, marking a 1.4 percent decrease compared to the same period last year. This decline was primarily attributed to reduced demand in European and Chinese markets, although acquisitions provided some offset. Organically, sales were down by 2.9 percent from the previous year.

Earnings and Profitability

Timken Co's net income for the third quarter of 2024 was $81.8 million, or $1.16 per diluted share, compared to $87.9 million, or $1.23 per diluted share, in the same quarter of the previous year. The net income margin stood at 7.3 percent, slightly down from 7.7 percent in the third quarter of 2023. Adjusted net income was $87.0 million, or $1.23 per diluted share, compared to $111.2 million, or $1.55 per diluted share, a year ago.

Cash Flow and Debt

During the third quarter of 2024, Timken Co generated $123.2 million in cash from operations and reported free cash flow of $88.2 million. The company's net debt-to-adjusted EBITDA ratio was 2.1 times, with no significant debt maturities expected until 2027, indicating a stable financial position.

Segment Results

In the third quarter of 2024, Timken Co's Engineered Bearings segment reported sales of $740.7 million, a 4.5 percent decrease from the previous year, mainly due to lower demand in Europe and China. Conversely, the Industrial Motion segment saw a 5.2 percent increase in sales to $386.1 million, driven by acquisitions despite a slight decline in organic demand.

2024 Outlook

Timken Co has revised its full-year 2024 outlook, now expecting earnings per diluted share to range between $4.65 and $4.75, with adjusted earnings per diluted share between $5.55 and $5.65. The company anticipates a total revenue decline of approximately 4 percent from 2023, as it navigates a challenging market environment while positioning itself for future growth.