Timken Reports Record Second-Quarter Results
Timken Reports Record Second-Quarter Results
Timken Reports Record Second-Quarter Results
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
- 6 -<br />
The <strong>Timken</strong> Company<br />
<strong>Timken</strong> expects aerospace demand to remain strong and performance to benefit<br />
from the integration of the Purdy acquisition and the segment’s broad end-market<br />
profile, resulting in performance during the second half of the year that is anticipated<br />
to be comparable to the first six months of 2008 and well above 2007 results.<br />
Steel Group <strong>Results</strong><br />
Sales for the Steel Group, including inter-group sales, were $518.9 million, an<br />
increase of 26 percent from $410.8 million for the same period last year. The<br />
increase was driven by raw-material surcharges and higher demand across all<br />
market sectors, except for automotive.<br />
<strong>Second</strong>-quarter EBIT was $80.3 million, up 22 percent from $65.9 million in the<br />
prior-year period. Compared to the same period a year ago, results benefited from<br />
volume, mix and surcharges, which were partially offset by higher raw-material and<br />
related LIFO charges, as well as higher manufacturing costs.<br />
For the first six months of 2008, Steel Group sales were $943.9 million, up<br />
18 percent over the first half of last year. EBIT for the first half of 2008 was<br />
$133.7 million, or 14.2 percent of sales, compared to EBIT of $131.4 million, or 16.4<br />
percent of sales in last year’s first half.<br />
<strong>Second</strong>-half 2008 Steel Group performance is expected to be below the first half<br />
of the year, and above the second half of 2007. The company continues to expect<br />
to benefit from volume, mix and surcharges, partially offset by higher raw-material<br />
and related LIFO charges, as well as increased manufacturing costs.<br />
Outlook<br />
The company expects earnings per diluted share for 2008, excluding special<br />
items, to be $2.95 to $3.10 for the year and $0.65 to $0.75 for the third quarter,<br />
compared to $2.40 and $0.51, respectively, for the same periods in 2007. Industrial<br />
demand is expected to remain strong in 2008 as additional capacity comes online in<br />
key growth markets, while North American automotive demand is anticipated to<br />
decline. <strong>Timken</strong> will continue to pursue execution initiatives and portfolio<br />
optimization, as well as pricing and better working capital management to improve
Change language