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Timken’s net income tumbles in 3d qtr.

Keywords: Tags  Timken, quarterly earnings, steel, James Griffith, bearings, power transmission, Corinna Petry

CHICAGO — Timken 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.

Timken’s steel 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.

Timken’s steel 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 comparison.

"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. 24.

"As a result, we’ve 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 (, Sept. 6).

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