Ohio-based steelmaker the Timken Company reported Thursday sales of $1.3 billion in Q2 2012, just a 1 percent increase over Q2 2011. While acquisitions, pricing and product mix all had favorable impacts on sales, they were mostly offset by weaker demand across broad-end markets, primarily outside North America, currency and lower material surcharges. Net income in Q2 of $183.6 million reflected an increase over the $121.5 million generated in the comparable quarter a year ago.
Timken posted sales of $2.8 billion in the first half of 2012, up 7 percent from the same period in 2011. In the first half of 2012, the company generated income of $339.3 million. That compares with $234.2 million, earned in the same period last year.
As for results in Timken's individual segments, sales for steel, including inter-segment sales, were $499.8 million in Q2, down slightly from $505.1 million for the same period last year. Mobile Industries' sales were $448.4 million, down 4 percent from last year's Q2 sales of $465.2 million. Process Industries' Q2 sales were $337.7 million, up 10 percent from $308.3 million for the same period a year ago. Aerospace and Defense had Q2 sales of $87.2 million, up 4 percent from $83.5 million for the same period last year. The increase reflects higher volume, led by the defense and motion control sectors.
Despite improved results in Q2, Timken was bearish about the remainder of 2012, cautioning that the company expects further weakening in many of its global markets for the remainder of 2012 and steel sales are anticipated to be flat to down 5 percent, driven by overall market demand and material surcharges. Mobile Industries' sales are expected to be flat to down 5 percent for the year reflecting improved rail and off-highway demand offset by weaker light vehicle and heavy truck shipments. Process Industries' sales will likely be up 7 to 12 percent, driven by the full-year impact of acquisitions and industrial distribution demand; Aerospace and Defense sales are poised to increase 10 to 15 percent, driven by increased demand across most end-markets, led by the defense and civil aerospace sectors.