Timken turns in record sales, new tag line

Timken turns in record sales, new tag line

Along with unveiling its new corporate tag line, “Where You Turn”, Canton, Ohio-based Timken Company yesterday announced record Q1 sales and that the company had appointed a new vice chairman to its board of directors. A world leader in the production of highly engineered bearings, alloy steels and related products, Timken reported record sales of $1.3 billion in the first quarter of 2005, up 19% year on year. Strong industrial demand helped Timken set a new quarterly high for net income at $58.2 million. For comparison, Timken had posted net income of $28.5 million during the first quarter of 2004. Among the brightest spots for Timken during the first quarter was the company’s Steel Group. The Steel Group benefited from strong performance in both its alloy steel and specialty steel businesses. The group posted record sales of $467.4 million, up 51 percent from $309.3 million in the first quarter of 2004. EBIT was a record $63.7 million, compared to $2.7 million last year. The group's improved profitability reflects greater volume, price increases and its success in recovering higher raw material costs through surcharges. "We continued to see broad strength in industrial markets, leading the Industrial and Steel Groups to deliver solid earnings this quarter,” said James W. Griffith, Timken’s president and CEO. “The performance in these areas more than offset the results of the Automotive Group, which reflected the relative weakness of the North American automotive industry.” Continued Griffith, "Over the past few years, we have taken actions to improve competitiveness in preparation for the upturn in global markets, and we are now benefiting from these actions. Overall, we are pleased with our first-quarter results and are continuing to focus on improving margins and performance." In addition to reporting its Q1 earnings yesterday, Timken also announced the appointment of Ward J. ("Tim") Timken, Jr. to the position of Vice Chairman - Board of Directors. Mr. Timken currently has corporate responsibilities as Executive Vice President. As Vice Chairman, these responsibilities will be expanded to encompass additional interface with the board of directors. Mr. Timken will also continue his operational role as president of the Steel Group. Mr. Timken, representing the fifth generation of Timken family members that have played active roles in company management since its founding in 1899, started with the company in 1992 as Executive Assistant in the company's Steel Group. His other positions in the Steel Group include Senior Analyst, Principal Strategic Management Analyst, and Market Manager - Distribution. In the bearing business, he has served as Marketing Manager for original equipment distribution in Europe, Africa and West Asia and as Vice President - Latin America.