Timken earnings fail to impress

Timken earnings fail to impress

Alloy steels and bearings producer Timken Co, announced today its net sales for the fourth quarter totaled $1.28 billion, up 8 percent from Q4 2004 sales of $1.19 billion. The company attributes its growth in sales to increased demand for its broad range of products. Net income rose 47 percent to $94.9 million, or $1.01 a share, from $64.4 million, or 71 cents a share, a year earlier. For the full year, the company earned $260.3 million, or $2.81 per share, up 92 percent from last year's $135.7 million, or $1.49 per share. However, these numbers were not very impressive to investors who had anticipated a much stronger profit. Excluding special items, Timken earned 54 cents a share in the fourth quarter, well below the 63 cents forecast by analysts. Timken President and CEO James W. Griffith said the company's earnings, "were lower than anticipated due to higher manufacturing costs, a write-off of obsolete and slow-moving inventory and increased reserves for automotive industry credit exposure." Looking forward, the company expects a first quarter profit of 55 cents to 60 cents per share. The Timken Company is the world's largest manufacturer of tapered roller bearings and mechanical seamless steel tubing, with operations in 27 countries.