Co.s earnings slumped in the third quarter due in part to
weaker demand from its broad end markets, as well as lower
volume and manufacturing utilization.
The Canton, Ohio-based
steelmaker and bearings producer reported net income of $52.2
million for the three months ended Sept. 30, down 35.5 percent
from $80.9 million in the same period last year, on sales that
fell 7.1 percent to $1.06 billion from $1.14 billion.
The loss was partially
offset by lower raw material and plant closure costs, as well
as favorable pricing, the company said.
business recorded sales of $350.5 million in the quarter, down
7 percent from the same year-ago period, due in part to reduced
shipments to industrial sectors. Earnings before interest and
taxes (Ebit) slumped 41.2 percent to $29.2 million, reflecting
an unfavorable sales mix, lower volume and higher manufacturing
costs, including scheduled maintenance.
Raw material surcharges decreased $4 million year
on year during the period, the company said.
sales for the first nine months of 2013 totaled $1.05 billion,
down 25.6 percent from the same period last year, while Ebit
shrank 52.6 percent to $107.3 million in the same
"On a macro basis,
economic growth across the world has been much slower than we
and our customers envisioned, and our third-quarter results
were below our expectations," Timken president and chief
executive officer James W. Griffith said in a statement Oct.
"As a result,
weve implemented and are continuing to take additional
actions to allow us to enhance margins despite the lower
demand," such as rationalizing capacity, he said.
The company is still
pursuing a plan to separate its steel business from its
bearings and power transmission business through a tax-free
spinoff, creating an independent, publicly traded steel company
next year (
amm.com, Sept. 6).