About Us
Wherever there is motion, you'll find Timken at work. Timken is one of the world's leading producers of highly engineered antifriction bearings and related products and services and alloy steel and components. We help create, transfer and control power, putting our friction management and power transmission technologies to work across a broad industry spectrum.
Timken has operations in 26 countries on six continents, and our team of 25,000 employees is dedicated to improving our customers' performance in a variety of applications.
History
History of The Timken Company
For more than 100 years, Timken has focused on value creation for diverse industries and market segments. We deliver a variety of friction management and power transmission solutions for applications ranging from aircraft and automobiles to mining equipment and medical instruments. We've grown considerably since our founding in 1899, but solving customer problems is still at the core of our business, just like it was when founder Henry Timken patented a tapered roller bearing design that made life easier for freight wagon operators and their mules.
The Beginning
Henry Timken, a St. Louis carriage maker, recognized that heavy freight wagons had a hard time making sharp turns. To solve the problem, he applied a tapered roller bearing design that could handle both radial (weight) and thrust (cornering force) loads. There were several customer benefits. First, the application ran more smoothly, reducing repair and replacement costs. In some cases, the bearings improved wagon performance so much that fewer mules were required to pull them. Finally, better cornering meant less chance of losing a load of goods. Always focused on customer benefit, Henry quickly realized that the tapered roller bearing could improve product performance in many other applications as well. He and his sons, H.H. and William Timken, quickly founded The Timken Roller Bearing and Axle Company and began building the business into what it is today.
Timken Reports First-Quarter Results, Updates Full-Year Outlook and Announces Dividend
CANTON, Ohio -- The Timken Company (NYSE: TKR) today reported sales of $960.4 million during the first quarter of 2009, a decrease of 33 percent over the same period a year ago. Significant volume declines due to weaker demand across most of the company’s end markets and the impact of lower surcharges and currency more than offset benefits from pricing and mix.
First-quarter net income was $0.9 million, or $0.01 per diluted share, compared with $84.5 million, or $0.88 per diluted share, in the first quarter of 2008. Excluding special items, net income was $7.1 million or $0.07 per diluted share for the first quarter of 2009, compared with $78.9 million or $0.82 per diluted share in the prior-year period. Lower first-quarter earnings reflect decreased demand across most of the company’s market sectors and the timing impact of the company’s material surcharge recovery mechanism. Partially offsetting these items were favorable pricing, mix, and lower selling, general and administrative costs.
Special items, net of tax, in the first quarter of 2009 totaled $6.2 million of expense compared with $5.6 million of income in the same period last year. Special items in 2009 were primarily related to severance and impairment charges, while 2008 included a gain on a sale of assets.
“It’s now clear that the impact of the recession on the demand for our products will be deeper and longer lasting than we anticipated. In the short term, we are managing the company with a heightened emphasis on cash flow,” said James W. Griffith, Timken president and chief executive officer. “At the same time, we are taking actions to structure the company for profitability, even at current levels of demand, including efforts to strengthen our portfolio while improving the competitiveness of our manufacturing base.”
Maintaining Strong Balance Sheet and Liquidity
The company continues to maintain a strong balance sheet with ample liquidity. In addition to cash and cash equivalents of $112.0 million at March 31, 2009, the company had approximately $900 million available under various credit facilities.
Total debt was $630.3 million as of March 31, 2009, or 28.1 percent of capital. Net debt at March 31, 2009, was $518.3 million, or 24.3 percent of capital, compared with $507.5 million, or 23.4 percent, as of Dec. 31, 2008. During the quarter the company generated cash flow from operating activities of $37.4 million, driven by inventory reductions. The company expects to end 2009 with lower net debt and leverage than last year, providing additional financial flexibility.
Dividend Declaration
As part of the effort to preserve the company’s strong balance sheet and liquidity, Timken’s board of directors reduced the quarterly dividend by 50 percent, declaring a quarterly cash dividend of 9 cents per share. The dividend is payable June 2, 2009 to shareholders of record as of May 22, 2009. It will be the 348th consecutive dividend paid on the common stock of the company.
Bearings and Power Transmission Group Results
The Bearings and Power Transmission Group had first-quarter sales of $728.7 million, down 31 percent from $1.05 billion for the same period last year. Earnings before interest and taxes (EBIT) for the first quarter were $40.7 million, down 58 percent from $96.8 million in the first quarter of 2008.
Mobile Industries Segment Results
In the first quarter, Mobile Industries sales were $372.9 million, a decrease of 41 percent from $635.3 million for the same period a year ago. The significant decline in sales was driven by weaker demand across all market sectors and the impact of currency, partially offset by favorable pricing. The greatest declines occurred in the heavy-truck and light-vehicle sectors, which were down approximately 50 percent.
Mobile Industries incurred an EBIT loss of $24.9 million compared with EBIT of $30.6 million for the same period a year ago. The impact of lower demand and resulting manufacturing capacity underutilization reduced earnings by approximately $100 million. This was partially offset by improved pricing and reduced selling and administrative costs of approximately $50 million.
Process Industries Segment Results
Process Industries had first-quarter sales of $243.2 million, down 22 percent from $312.6 million for the same period a year ago. Lower demand across most industrial market sectors and currency more than offset favorable pricing. Sales into the metals, power transmission and aggregate sectors experienced the largest declines while power generation products were up from the same period a year ago.
First-quarter EBIT was $47.0 million, down 20 percent from $59.0 million in the same period a year ago. Lower EBIT primarily resulted from volume, mix and currency, which was partially offset by pricing.
Aerospace and Defense Segment Results
Aerospace and Defense had first-quarter sales of $112.7 million, up 10 percent from $102.1 million for the same period last year. The increase was driven by demand, favorable pricing and acquisitions. The company acquired EXTEX, a leading designer and marketer of high-quality replacement engine parts for the aerospace aftermarket, in November 2008. The EXTEX acquisition accounted for approximately 30 percent of the sales increase.
First-quarter EBIT was $18.6 million, up 159 percent from $7.2 million in the same period a year ago. Performance benefited primarily from pricing and manufacturing improvements.
Steel Group Results
Sales for the Steel Group, including inter-group sales, were $248.6 million, a decrease of 42 percent from $425.0 million for the same period last year. The decline was driven by lower demand across all market sectors, ranging from the service center sector, down approximately 15 percent, to the automotive sector, down approximately 60 percent from the same period a year ago. Sales were also impacted by a significant decline in raw-material surcharges of approximately $80 million from the first quarter last year.
The Steel Group incurred an EBIT loss of $7.3 million compared with EBIT of $53.4 million for the same period a year ago. The decline primarily resulted from lower demand of approximately $30 million and underutilization of manufacturing capacity of roughly $30 million. Lower surcharges of about $80 million were offset by approximately $50 million in favorable material costs and a change in LIFO of approximately $30 million. The change in LIFO was due to expected lower year-end inventory quantities and material costs.
Outlook
The company now expects the impact of the global recession to continue through the rest of the year with sales in most of its market sectors being down significantly from last year. Steel Group sales are expected to decline approximately 55 to 65 percent for the year due to lower surcharges and demand across all sectors. Mobile Industries sales are expected to be down approximately 30 to 35 percent for the year, driven by lower North American light-vehicle production, and significant declines in heavy-truck builds in North America and Europe. Process Industries sales are expected to be down by about 25 to 30 percent in 2009, with broad-based volume declines in most end markets, especially heavy industrial equipment. Sales in the Aerospace and Defense segment are expected to be up approximately 5 to 10 percent for 2009, driven by a strong defense sector, while recent softening in the civil sector is expected to have a minimal effect given current order backlogs.
As a result of the company’s global market outlook, it now expects earnings per diluted share for 2009, excluding special items, to be $-0.15 to $0.15. Despite the lower earnings outlook, the company expects to generate strong cash from operations in 2009, driven by lower working capital. In addition, the company will significantly reduce capital spending from 2008 levels, and will continue to take the actions required to manage in the current environment while maintaining its strong liquidity and balance sheet.
Technology That Moves You
Developing more efficient ways to create, transfer and control power can have endless societal impacts, from improved energy efficiency that saves businesses and consumers money to reduced emissions that help sustain our environment.
Here are a few examples of how Timken technology is making a powerful difference.
Creating Power
High temperatures, pressures and frictional forces in heavy diesel engines create unique challenges for equipment designers and end consumers. Cylinder liners are used in these engines to help withstand these harsh conditions while maximizing horsepower and torque through sliding motion. Timken customers are discovering that steel gives them a better option over traditional cast iron designs. Thinner Timken steel liners are more durable, increase energy efficiency and reduce the amount of machining necessary to make the liners. Steel cylinder liners also reduce engine maintenance for end users and comply with future emissions regulations while retrofitting into existing engine block designs.
Transferring Power
Planetary gear systems are used to transfer power in a variety of industries, from automotive and agriculture to aerospace and defense. Conventional systems have evolved to the point where further refinements can only result in modest performance and capacity gains. Through extensive application analysis and technology developments, Timken has increased the power density of planetary gearsets with the Timken Flex Drive. This design features a bearing assembly and annular sleeve that supports the gear and provides significant torque reduction. Studies show that the flex drive can create 50 percent more power than traditional designs – providing greater horsepower capacity within the same space.
Controlling Power
Speed, position, direction and torque are vital pieces of information for a variety of control systems. In transmissions, it enables more efficient shifting based on torque and speed. In wheel ends and drive shafts, it provides dynamic data and power control. Timken magnetic encoders help control power by providing more accurate speed and position data for antilock braking systems and are designed to withstand harsh environments. Ultimately, this technology increases transmission efficiency in a variety of vehicles.
Timken Technical Capabilities
Each day, Timken engineers analyze customer application problems and develop new ways to solve them. We have nearly a century of experience in materials science and steelmaking, and an even longer history in friction management. We use technical know-how to move customers toward improved performance. Our capabilities include:
Advanced Material Technology
Timken invests in technology development that results in cleaner, stronger materials. Our engineers drive technology in many markets, producing new and better products that demonstrate superior performance in high stress conditions. Whether we need to develop new material specifications, or help solve a customer processing problem, our advanced material engineers are among the most knowledgeable in the industry.
Advanced Press Technology
Our expertise in advanced material conversion, finishing, gaging and assembly ensures high quality production of every Timken-made product. With resources dedicated to studying, developing and implementing next generation manufacturing processes and technologies, we’re able to support new product growth and performance value for our customers.
Tribology Technology
Tribology is the science of interacting surfaces in relative motion. At Timken, our experts in engineered surfaces, advanced sealing technology, advanced lubrication, friction and wear analysis and contact mechanics work together to develop a wide range of motion solutions. We create new product and market opportunities through tribological innovations that enhance existing products and contribute to the development of new ones.
Design & Analysis Technology
Our design and analysis technologists specialize in using advanced engineering tools to design Timken products and analyze their performance. They also work directly with customers to analyze their applications and develop customized solutions that overcome special challenges.
Magnetics & Electronics
Emerging technologies developed and used by our magnetics and electronics specialists help machines work smarter and more efficiently. Information technology is incorporated into products for a variety of purposes, including motion control, condition monitoring and system prognostics.
Timken Tech Series
The Timken Tech Series program is an interactive, multimedia tool that helps you learn about and get the most out of Timken's automotive and heavy duty products. This resource provides thorough explanations that are detailed and easy to follow.
Two Ways To Learn
- Select I’ll Take the Wheel and you’re in the driver’s seat. Cruise at your convenience through all the information.
- Choose I’ll Ride Along and you will automatically be taken down all the byways of instruction.
As you move through each section, take a Driver’s Exam to test your knowledge. You’ll earn certification, recognition and other rewards!
Core Chapters
Timken Tech Series includes information on tapered, cylindrical, needle and ball bearings as well as hubs, seals and lubricants. Each product section is divided into information-packed chapters for ease of navigation. Chapters include:
- Removal and Installation
- Glossary
- Troubleshooting
- Product Features and Benefits
- Videos
- Literature
Earn certification three ways!
- Online – Welcome to Timken Tech Series, take the test and get your results instantly!
- E-mail – Complete the test version and e-mail it.
- Hard copy – Print a copy of the test, complete it, and fax or mail it.
Take the test as often as needed to achieve the 80 percent passing rate. After successfully completing a test, you will receive:
- Certificate of completion
- Timken Tech Series patch (after first test)
- Chevron patch (for each section completed)
Timken Wheel Bearing
One of the most critical systems on your car or truck is the wheel bearing. Your wheel bearings allow the wheels to turn on the spindle. Without them, your vehicle would just be an expensive piece of sculpture. Wheel bearing will eventually fail, and because they are so important, you should always replace them with high quality bearings, such as a Timken Wheel Bearing. Timken Wheel Bearings are designed to handle the extreme stress of performance driving. They are available in six different designs, and no matter what you application, you should be able to find a Timken Wheel Bearing to fit your car or light truck. Every one of the six Timken Wheel Bearing designs is done in different sizes for different applications. For example, the UNIPAC series of Timken Wheel Bearing features a two-row tapered design that is especially useful when weight is a factor. An example of such an application is a racing vehicle, when every gram saved is horsepower earned. Many of the Timken Wheel Bearings come with integrated sensors and friction controls that work with antilock brakes and traction control systems. No matter which of the six designs of Timken Wheel Bearing you choose, you can be confident that it is a quality bearing that is able to get you where you need to go. Auto parts customers should certainly get superlative support while shopping for quality parts for their car or truck. So of course we make available a 24/7/365 sales assistance bureau to support you with your queries. Nobody likes to pay for shipping, so all parts come with totally free shipping for all orders $50 or more. If you spot a better price somewhere else, tell us - we will meet or beat any advertised price for auto parts.
Timken Wheel Hub Assembly
Your wheel hub assembly is one of the most critical parts of your car or truck. It is responsibly for mounting the wheel to the vehicle. As durable as a wheel hub is, eventually it is going to wear out. The symptoms of a failing wheel hub are a grinding noise that is magnified or diminished in turns and uneven tire wear. If your wheel hub is failing, you should replace it immediately. If neglected, your wheel could actually fall right off of your car, a catastrophic situation. You always want to use quality replacement parts, especially for a component that is this important. A great replacement wheel hub is the Timken Wheel Hub Assembly. Timken has been designing and manufacturing high quality hubs and bearings for a long time. With this kind of experience, you can be confident that the Timken Wheel Hub Assembly is up to the heat and friction that will be thrown its way. The Timken Wheel Hub Assembly is crafted to be superior in every way to your stock hub. It is lighter, has better lubricant, and the internal bearings are manufactured to the very highest standards. Any way you look at it, the Timken Wheel Hub Assembly is the way to go, and it is available for a very wide range of applications. Auto part buyers certainly deserve great technical support while looking at quality car parts from us. For all our customers, we make available a twenty-four hour a day information and support call bureau to answer your calls. To sweeten the deal, you always get 100% free shipping on every order $50 or higher. If you can find a better price, call us - we will meet or beat any legitimate auto part price.
