NEW YORK Engineered steel bar and tube producer Timken Co. posted a 31-percent decline in net income to $75.3 million for fourth-quarter 2012, largely due to lower volumes, lower material surcharges and higher manufacturing costs.
The lower earnings were partially offset by favorable pricing, lower material costs and a lower tax rate, the company said.
"Over the course of the year, we responded quickly and effectively to slowing demand across our end markets and maintained our focus on driving value for our customers and shareholders," Timken president and chief executive officer James Griffith said in a statement released with fourth-quarter and full-year 2012 earnings Jan. 24.
"The fundamental changes weve made to improve the structural performance in our business led to strong operating results and free cash flow generation, as well as a strengthened balance sheet," he added. "Our strategic plan continues to serve us well in the face of uncertainty in the global economy."
Sales for the three months ended Dec. 31 were $1.08 billion, down 14.6 percent year on year, as a result of lower demand from the light vehicle, heavy truck, mining and energy sectors, as well as lower surcharges, the company said, adding that the decrease was partially offset by favorable pricing.
The Canton, Ohio-based company reported 2012 full-year net income of $495.5 million, compared with $454.3 million in 2011.
The decline in fourth-quarter sales reflects lower demand in North America and Europe, but the company said growth in Asia helped ease the effects.