On January 27, Timken Company, an Ohio, US-based manufacturer of highly engineered bearings, alloy steels, and related components and assemblies, has reported its financial results for the fourth quarter and the whole of 2010, saying that light-vehicle demand provided an early boost in sales and remained strong throughout the year, leading the company to a
strong performance.
"In the second half, accelerated demand in the heavy-truck, off-highway, energy and industrial distribution sectors further increased top-line growth. Surcharges and pricing contributed to the sales increase as well," Timken said in its comments on the results.
A net income of $90.3 million for the fourth quarter of 2010 was recorded compared with $20.2 million a year ago. For the full year of 2010, Nucor reported a net income of $288.9 million, compared with a net income of $30.7 million in 2009.
Timken's net sales in Q4 2010 were $1.07 billion, with a 38 percent increase compared with $774.6 million in Q4 2009. For the full year of 2010, Timken's sales revenues increased 29 percent to $4.05 billion from $3.14 billion a year ago.
Timken projects a 10-15 percent increase in 2011 sales revenues
Compared with the prior year, the company's 2010 performance benefited from higher volumes, pricing and surcharges, as well as an improved cost structure and greater manufacturing efficiencies. Increased raw material costs and related LIFO charges partially offset these benefits, in addition to higher selling and administrative costs from the company's performance-based compensation plans.
Timken expects the global economy to grow modestly in 2011 following 2010's recovery. Timken is projecting its 2011 sales to increase by approximately 10 to 15 percent from 2010 sales.