Canton, Ohio-based The Timken Company reported Thursday sales of $4.3 billion for 2013, a decrease of 13 percent from the prior year. In addition, a $117 million decline in the company’s steel segment raw material surcharges from the prior-year period further decreased revenues.
In 2013, the company generated net income of $262.7 million, or $2.74 per diluted share, compared with $495.5 million, or $5.07 per diluted share, a year ago.
For the fourth quarter of 2013, Timken posted sales of $1.1 billion, down 2 percent from the same period in 2012. The sales decrease primarily reflects lower demand from the industrial, mining, heavy-truck and light-vehicle end-market sectors. The company generated net income of $52.6 million in Q4, or $0.55 per diluted share. That compares with $75.3 million, or $0.78 per diluted share, earned in the same period last year.
Sales for steel, including inter-segment sales, were $1.4 billion in 2013, down 20 percent from $1.7 billion last year. The results reflect reduced shipments to the industrial and oil and gas market sectors, partially offset by improved demand in the mobile on-highway end-market sector. Raw-material surcharges decreased approximately $117 million from 2012. For the quarter, steel segment sales were $330.1 million, up 4 percent from the same period last year driven by demand in the mobile on-highway and oil and gas end-market sectors. Raw-material surcharges increased approximately $7 million from the fourth quarter in 2012.
As for the company’s outlook, Timken expects that for the full year 2014, steel sales will be up 12 to 17 percent, driven by improved demand in the oil and gas and industrial end-market sectors.