Timken Reports Strong Fourth-Quarter Results to Close Out a Record 2023

For 2023, sales were a record $4.8 billion, up 6.1 percent compared with 2022. The increase was primarily driven by the benefit of acquisitions (net) and the impact of higher pricing, partially offset by lower volume and unfavorable foreign currency translation. Organically, 2023 sales were up 1.1 percent versus 2022.

Net income was $394.1 million or $5.47 per diluted share for the year, compared with net income of $407.4 million or $5.48 per diluted share a year ago. The modest year-over-year decrease reflects the impact of lower volume, higher operating costs and interest expense, unfavorable foreign currency, and the impact of higher pension remeasurement, impairment, restructuring and acquisition-related charges, partially offset by the impact of favorable price/mix, lower material & logistics costs, and the net benefit of acquisitions.

Excluding special items (detailed in the attached tables), adjusted net income was $508.1 million or a record $7.05 per diluted share in 2023. This compares with adjusted net income of $480.3 million or adjusted earnings of $6.46 per diluted share in 2022. Adjusted EBITDA for the year was $939.7 million or 19.7 percent of sales, compared with $855.9 million or 19.0 percent of sales in 2022.

Net cash from operations for the full year was $545.2 million, and free cash flow was $357.4 million. Timken ended the year with net debt to adjusted EBITDA at 2.1 times.

Among other highlights in 2023, the company:

• Expanded its Industrial Motion segment with the acquisitions of Nadella, Des-Case, Rosa Sistemi and Lagersmit. The company also bolstered its engineered bearings portfolio with the acquisitions of American Roller Bearing and iMECH. In total, Timken allocated $639 million toward these six strategic acquisitions;

• Repurchased 3.16 million shares, or over 4 percent of outstanding shares, and increased its quarterly dividend. In 2023, the company achieved 101 straight years of paying quarterly dividends and marked its tenth consecutive year of higher annual dividends. In total, Timken returned $345 million to shareholders during the year through dividends and share repurchases; and

• Was named one of America's Most Responsible Companies for the fourth straight year by Newsweek magazine and Statista Inc., and one of the World's Most Ethical Companies^® for the 12^th time by Ethisphere Institute, reflecting the company's continued commitment to corporate social responsibility and strong core values.

Fourth-Quarter 2023 Segment Results

Engineered Bearings sales of $724.2 million decreased 2.4 percent from the same period a year ago. The decrease was driven by lower volume, partially offset by the benefit of acquisitions (net), higher pricing and favorable foreign currency translation.

EBITDA for the quarter was $123.0 million or 17.0 percent of sales, compared with EBITDA of $129.6 million or 17.5 percent of sales for the same period a year ago. The decrease in EBITDA was driven primarily by the impact of lower volume, higher operating costs and unfavorable foreign currency, partially offset by favorable price/mix, lower material & logistics costs, and the benefit of acquisitions.

Excluding special items, adjusted EBITDA in the quarter was $132.5 million or 18.3 percent of sales, compared with $134.2 million or 18.1 percent of sales in the fourth quarter of last year.

Industrial Motion sales of $367.0 million increased 8.0 percent compared with the same period a year ago. The increase was driven by the benefit of acquisitions (net), higher pricing and favorable foreign currency translation, partially offset by lower volume.

EBITDA for the quarter was $62.6 million or 17.1 percent of sales, compared with EBITDA of $60.4 million or 17.8 percent of sales for the same period a year ago. The increase in EBITDA was driven primarily by favorable manufacturing costs, the benefit of acquisitions and favorable price/mix, partially offset by lower volume and higher acquisition-related charges.

Excluding special items, adjusted EBITDA in the quarter was $81.6 million or 22.2 percent of sales, compared with $64.9 million or 19.1 percent of sales in the fourth quarter of last year.

2024 Outlook

Timken is setting an initial outlook for 2024 revenue to be down in the range of 2.5% to 4.5% in total, as the benefit of acquisitions completed during 2023 is expected to be more than offset by lower anticipated organic revenue based on the current demand environment. The company is planning for earnings per diluted share in the range of $4.90 to $5.30 and adjusted earnings per diluted share in the range of $5.80 to $6.20.

"We are focused on delivering resilient performance in 2024 through softer industrial markets while continuing to advance our proven strategy," said Kyle. "Our team is actively managing costs and driving operational excellence initiatives across the enterprise to mitigate a lower organic revenue outlook. We will also benefit from recent acquisitions and are accelerating integration activities to realize synergies."

Kyle continued, "We expect to deliver solid operating margins and a significant step-up in free cash flow in 2024, which coupled with our strong balance sheet will continue to fuel our profitable growth strategy and capital allocation priorities. We remain confident in our ability to navigate macroeconomic volatility, profitably grow through industrial cycles, and deliver strong returns for shareholders."

Conference Call Information

Timken will host a conference call today at 11 a.m. Eastern Time to review its financial results. Presentation materials will be available online in advance of the call for interested investors and securities analysts.

About The Timken Company

The Timken Company (NYSE: TKR; www.timken.com) designs a growing portfolio of engineered bearings and industrial motion products. With more than a century of knowledge and innovation, we continuously improve the reliability and efficiency of global machinery and equipment to move the world forward. Timken posted $4.8 billion in sales in 2023 and employs more than 19,000 people globally, operating from 45 countries. Timken has been recognized among America's Most Responsible Companies and America's Greatest Workplaces for Diversity by Newsweek, the World's Most Ethical Companies® by Ethisphere, America's Most Innovative Companies by Fortune and America's Best Large Employers by Forbes.

Certain statements in this release (including statements regarding the company's forecasts, estimates, plans 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 "2024 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 fourth quarter and full-year of 2023; the company's ability to respond to the changes in its end markets that could affect demand for the company's products or services; 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; logistical issues associated with port closures or congestion, delays or increased costs; the impact of changes to the company's accounting methods; political risks associated with government instability; recent world events that have increased the risks posed by international trade disputes, tariffs, sanctions and hostilities; strained geopolitical relations between countries in which we have significant operations; weakness in global or regional general economic conditions and capital markets (as a result of financial stress affecting the banking system or otherwise); the impact of inflation on employee expenses, shipping costs, raw material costs, energy and fuel prices, and other production costs; the company's ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms in a high interest rate environment; fluctuations in currency valuations; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion, synergies, and expected cashflow generation within expected timeframes or at all; fluctuations in customer demand; the company's ability to effectively adjust prices for its products in response to changing dynamics; the impact on the company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; the introduction of new disruptive technologies; unplanned plant shutdowns; the effects of government-imposed restrictions, commercial requirements, and company goals associated with climate change and emissions or other sustainability initiatives; unanticipated litigation, claims, investigations or assessments; changes in the global regulatory landscape; the company's ability to maintain positive relations with unions and works councils; the company's ability to compete for skilled labor and to attract, retain and develop management, other key employees, and skilled personnel at all levels of the organization; negative impacts to the company's operations or financial position as a result of pandemics, epidemics, or other public health concerns and associated governmental measures; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, acquisitions and capital investments. 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, 2022, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Media Relations:
Scott Schroeder
234.262.6420
scott.schroeder@timken.com

Investor Relations:
Neil Frohnapple
234.262.2310
neil.frohnapple@timken.com

The Timken Company
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except share data) (Unaudited)
			Three Months Ended December 31,									Twelve Months Ended December 31,
			2023			2022						2023			2022
Net sales			$	1,091.2		$	1,082.0					$	4,769.0		$	4,496.7
Cost of products sold			759.9			774.2						3,259.9			3,164.7
Selling, general & administrative expenses			189.5			167.3						740.8			637.1
Amortization of intangible assets			17.4			11.7						65.7			43.9
Impairment and restructuring charges			5.2			1.8						45.5			44.1
Operating Income			119.2			127.0						657.1			606.9
Non-service pension and other postretirement (expense) income			(23.2)			14.6						(24.0)			9.3
Other (expense) income, net			(7.0)			4.1						(1.2) Werbung Mehr Nachrichten zur Timken Co Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 06:38 - PR Newswire Finsbury Growth & Income Trust Plc - Appointment of Auditor 02:00 - PR Newswire BlackRock World Mining Trust Plc - Total Voting Rights Paukenschlag in USA    Cannabis-Neuregulierung durch DEA sorgt für Kursexplosion! weiterlesen» Anzeige wo-site-teaser-box-16809_site-teaser-box_2024-05-01_09%253A00%253A00_2024-05-02_09%253A00%253A59