- Sales of $1.08 billion in
the fourth quarter, up 7 percent in total and 10 percent
organically from last year
- Fourth-quarter EPS of $1.32; adjusted EPS of $1.22
- Record full-year 2022 EPS of $5.48; record adjusted EPS of $6.02
- Starting in 2023, adjusted EPS will be revised to exclude
acquisition intangible amortization expense
- Company provides initial estimate for 2023 EPS of
$5.80-$6.40, with adjusted EPS of $6.50-$7.10
NORTH
CANTON, Ohio, Feb. 6, 2023
/PRNewswire/ -- The Timken Company (NYSE: TKR;
www.timken.com), a global leader in engineered bearings and
industrial motion products, today reported fourth-quarter 2022
sales of $1.08 billion, up 7.4 percent from the same
period a year ago. The increase was driven by strong organic growth
across most end-market sectors, and the favorable impact of
acquisitions (net of divestitures), partially offset by unfavorable
foreign currency translation. Organically, fourth-quarter sales
were up 10.2 percent versus the prior year, with volume and pricing
both contributing meaningfully.
Timken posted net income in the fourth quarter
of $97.2 million or $1.32 per diluted share. This compares to
net income of $62.9 million or $0.82 per diluted
share for the same period a year ago. The year-on-year increase in
net income primarily reflects the impact of positive price/mix and
higher volume, partially offset by higher manufacturing and
SG&A costs, and higher interest expense.
Excluding special items, adjusted net income in the fourth
quarter was $89.6 million or
$1.22 per diluted share, a record for
the fourth quarter. This compares to adjusted net income of
$59.6 million or $0.78 per diluted share for the same period in
2021.
Net cash from operations for the fourth quarter was $241.5 million, and free cash flow was
$185.6 million. During the quarter,
the company returned $40.8 million of
cash to shareholders through dividends and the repurchase of 250
thousand shares of company stock. Also, among recent developments,
Timken acquired the assets of American Roller Bearing Co., which
will enhance the company's strong market position in engineered
bearings. In addition, Timken announced an agreement to acquire
Nadella Group, which will expand the company's linear motion
portfolio in attractive market sectors. In total, these two
businesses generated revenue of approximately $140 million in 2022.
"We delivered excellent results in the fourth quarter, driven by
strong execution and improved price-cost performance," said
Richard G. Kyle, Timken president
and chief executive officer. "In 2022, Timken continued to grow its
position as a diversified industrial leader and delivered
record revenue and earnings per share with solid operating margin
expansion. We have the right strategy, the right team and the right
portfolio in place to continue our positive momentum heading into
2023."
2022 Full-Year Results and Highlights
For 2022, sales were $4.5 billion,
up 8.8 percent compared with 2021. The increase was primarily
driven by organic growth across most end-market sectors, as well as
the impact of higher pricing and acquisitions, partially offset by
unfavorable foreign currency translation. Organically, 2022 sales
were up 11.6 percent versus 2021.
Net income was $407.4 million or a
record $5.48 per diluted share for
the year, compared with net income of $369.1
million or $4.79 per diluted
share a year ago. The year-over-year increase primarily reflects
positive price/mix and the impact of higher volume, partially
offset by higher operating costs and interest expense, a higher tax
rate, and the net unfavorable impact of impairment charges and
other special items (detailed in the attached tables).
Excluding special items, adjusted net income was $447.8 million or a record $6.02 per diluted share in 2022. This compares
with adjusted net income of $363.4
million or adjusted earnings of $4.72 per diluted share in 2021.
Net cash from operations for the full year was $463.8 million, and free cash flow was
$285.4 million. Timken ended the year
with a strong balance sheet; net debt to adjusted earnings before
interest, taxes, depreciation and amortization (EBITDA) was 1.9
times as of December 31, 2022.
Among other highlights in 2022, the company:
- Bolstered its engineered bearings portfolio with the
acquisition of GGB Bearings, a global supplier of highly engineered
and customized plain bearings and a leader in metal polymer
bearings;
- Expanded its robotics and automation offering in attractive end
market sectors with the acquisition of Spinea, a technology leader
in highly engineered cycloidal reduction gears and actuators;
- Repurchased 3.25 million shares, or over 4 percent of
outstanding shares, and increased its quarterly dividend. In 2022,
the company achieved 100 years of paying quarterly dividends and
marked its ninth consecutive year of higher annual dividends. In
total, Timken returned $303 million
to shareholders during the year through dividends and share
repurchases; and
- Was named one of America's Most Responsible Companies
for the third straight year by Newsweek magazine and
Statista Inc. This recognition is a testament to Timken's strong
core values and commitment to corporate social responsibility.
Fourth-Quarter 2022 Segment Results
Process Industries sales of $586.4 million
increased 11.1 percent from the same period a year ago. The
increase was driven by organic growth across all sectors led by
distribution, heavy industries and general industrial, and the
favorable impact of acquisitions (net), partially offset by
unfavorable foreign currency translation.
EBITDA for the quarter was $137.1 million
or 23.4 percent of sales, compared with EBITDA
of $104.4 million or 19.8 percent of sales for
the same period a year ago. The increase in EBITDA was driven
primarily by the impact of positive price/mix and higher volume,
partially offset by higher manufacturing and SG&A costs and the
unfavorable impact of currency.
Excluding special items (detailed in the attached tables),
adjusted EBITDA in the quarter was $142.9 million
or 24.4 percent of sales, compared
with $105.3 million or 20.0 percent of sales in the
fourth quarter last year.
Mobile Industries sales of $495.6 million
increased 3.3 percent compared with the same period a year ago. The
increase was driven by organic growth across most sectors led by
off-highway and rail, partially offset by unfavorable foreign
currency translation.
EBITDA for the quarter was $52.9 million
or 10.7 percent of sales, compared with EBITDA
of $40.0 million or 8.3 percent of sales for the
same period a year ago. The increase in EBITDA was driven primarily
by positive price/mix, partially offset by higher manufacturing and
SG&A costs.
Excluding special items (detailed in the attached tables),
adjusted EBITDA in the quarter was $56.2 million
or 11.3 percent of sales, compared
with $41.3 million or 8.6 percent of sales in the
fourth quarter last year.
2023 Outlook
Going forward, Timken is revising its adjusted earnings and
adjusted earnings per share calculations to exclude acquisition
intangible amortization expense. Amortization expense has grown in
recent years driven by acquisitions, and the company believes this
change will better reflect its core operating earnings and improve
comparability versus peers.
Timken is setting an initial outlook for 2023 earnings per
diluted share in the range of $5.80
to $6.40. Excluding acquisition
intangible amortization expense and other special items, the
company estimates that 2023 adjusted earnings per diluted share
will be in the range of $6.50 to
$7.10. The company expects 2023
revenue to be up approximately 6 percent in total at the midpoint
from 2022.
"We are planning for 2023 to be another year of growth for The
Timken Company," said Kyle. "We expect to benefit from favorable
price-cost, organic outgrowth initiatives, improving operational
execution and the impact of our recent acquisitions. While
uncertainty remains elevated, we continue to see healthy demand and
the year is already off to a strong start."
Kyle continued, "We are projecting a sizeable step-up in
operating cash flow this year and we will continue to create value
through our disciplined approach to capital allocation. Our team is
excited about the opportunities in front of us and confident in our
strategy to drive profitable growth and strong shareholder returns
over time."
Conference Call Information
Timken will host a conference call today at 11 a.m. Eastern
Time to review its financial results. Presentation materials will
be available online in advance of the call for interested investors
and securities analysts.
Conference
Call:
|
Monday, February 6,
2023
|
|
11:00 a.m. Eastern
Time
|
|
Live Dial-In:
844-200-6205
|
|
Or
646-904-5544
|
|
Access Code:
887962
|
|
(Call in 10 minutes
prior to be included.)
|
|
|
Conference Call
Replay:
|
Replay Dial-In
available through
|
|
Feb. 20,
2023:
|
|
866-813-9403 or
929-458-6194
|
|
Replay Passcode:
935474
|
|
|
Live
Webcast:
|
http://investors.timken.com
|
About The Timken Company
The Timken Company (NYSE:
TKR; www.timken.com) designs a growing portfolio of
engineered bearings and industrial motion products. With more than
a century of knowledge and innovation, we continuously improve the
reliability and efficiency of global machinery and equipment to
move the world forward. Timken posted $4.5 billion in sales in 2022 and employs more
than 19,000 people globally, operating from 46 countries. Timken
has been recognized among America's Most Responsible
Companies by Newsweek, the World's Most Ethical
Companies® by Ethisphere and America's Best Employers,
America's Best Employers for New Graduates and America's Best
Employers for Women by Forbes.
Certain statements in this release (including statements
regarding the company's forecasts, estimates, plans and
expectations) that are not historical in nature are
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. In particular, the
statements related to expectations regarding the company's future
financial performance, including information under the heading
"2023 Outlook," are forward-looking.
The company cautions that actual results may differ
materially from those projected or implied in forward-looking
statements due to a variety of important factors, including: the
finalization of the company's financial statements for the fourth
quarter and full year of 2022; the company's ability to respond to
the changes in its end markets that could affect demand for the
company's products or services; unanticipated changes in business
relationships with customers or their purchases from the company;
changes in the financial health of the company's customers, which
may have an impact on the company's revenues, earnings and
impairment charges; logistical issues associated with port closures
or congestion, delays or increased costs; the impact of changes to
the company's accounting methods; political risks associated with
government instability; recent world events that have increased the
risks posed by international trade disputes, tariffs, sanctions and
hostilities; weakness in global or regional general economic
conditions and capital markets; the impact of inflation on employee
expenses, shipping costs, raw material costs, energy and fuel
prices, and other production costs; the company's ability to
satisfy its obligations under its debt agreements and renew or
refinance borrowings on favorable terms in a rising interest rate
environment; fluctuations in currency valuations; changes in the
expected costs associated with product warranty claims; the ability
to achieve satisfactory operating results in the integration of
acquired companies, including realizing any accretion, synergies,
and expected cashflow generation within expected timeframes or at
all; fluctuations in customer demand; the impact on the company's
pension obligations and assets due to changes in interest rates,
investment performance and other tactics designed to reduce risk;
the introduction of new disruptive technologies; unplanned plant
shutdowns; the effects of government-imposed restrictions,
commercial requirements, and company goals associated with climate
change and emissions or other waste reduction initiatives;
unanticipated litigation, claims, investigations or assessments;
the company's ability to maintain positive relations with unions
and works councils; the company's ability to compete for skilled
labor and to attract, retain and develop management and other key
employees; negative impacts to the company's operations or
financial position as a result of COVID-19 or other epidemics and
associated governmental measures; and the company's ability to
complete and achieve the benefits of announced plans, programs,
initiatives, acquisitions and capital investments. Additional
factors are discussed in the company's filings with the Securities
and Exchange Commission, including the company's Annual Report on
Form 10-K for the year ended Dec. 31,
2021, quarterly reports on Form 10-Q and current reports on
Form 8-K. Except as required by the federal securities laws, the
company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Media Relations:
Scott
Schroeder
234.262.6420
scott.schroeder@timken.com
Investor Relations:
Neil
Frohnapple
234.262.2310
neil.frohnapple@timken.com
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Timken Company
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
|
|
|
|
|
(Dollars in millions, except share data)
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2022
|
2021
|
|
2022
|
2021
|
Net sales
|
$
|
1,082.0
|
|
$
|
1,007.3
|
|
|
$
|
4,496.7
|
|
$
|
4,132.9
|
|
Cost of products
sold
|
785.9
|
|
774.2
|
|
|
3,208.6
|
|
3,030.4
|
|
Gross Profit
|
296.1
|
|
233.1
|
|
|
1,288.1
|
|
1,102.5
|
|
Selling, general &
administrative expenses
|
167.3
|
|
146.3
|
|
|
637.1
|
|
580.5
|
|
Impairment and
restructuring charges
|
1.8
|
|
0.7
|
|
|
44.1
|
|
8.9
|
|
Operating Income
|
127.0
|
|
86.1
|
|
|
606.9
|
|
513.1
|
|
Non-service pension and
other postretirement income
|
14.6
|
|
12.4
|
|
|
9.3
|
|
18.3
|
|
Other income,
net
|
4.1
|
|
1.4
|
|
|
5.5
|
|
1.7
|
|
Interest expense,
net
|
(21.6)
|
|
(13.2)
|
|
|
(70.8)
|
|
(56.5)
|
|
Income Before Income Taxes
|
124.1
|
|
86.7
|
|
|
550.9
|
|
476.6
|
|
Provision for income
taxes
|
25.0
|
|
20.0
|
|
|
133.9
|
|
95.1
|
|
Net Income
|
99.1
|
|
66.7
|
|
|
417.0
|
|
381.5
|
|
Less: Net income
attributable to noncontrolling interest
|
1.9
|
|
3.8
|
|
|
9.6
|
|
12.4
|
|
Net Income Attributable to The Timken
Company
|
$
|
97.2
|
|
$
|
62.9
|
|
|
$
|
407.4
|
|
$
|
369.1
|
|
|
|
|
|
|
|
Net Income per Common Share Attributable to The
Timken Company Common Shareholders
|
|
|
|
|
|
Basic Earnings per
share
|
$
|
1.34
|
|
$
|
0.83
|
|
|
$
|
5.54
|
|
$
|
4.86
|
|
Diluted Earnings per
share
|
$
|
1.32
|
|
$
|
0.82
|
|
|
$
|
5.48
|
|
$
|
4.79
|
|
|
|
|
|
|
|
Average Shares Outstanding
|
72,666,994
|
|
75,641,174
|
|
|
73,602,247
|
|
75,885,316
|
|
Average Shares Outstanding - assuming
dilution
|
73,578,675
|
|
76,594,491
|
|
|
74,323,839
|
|
77,006,589
|
|
BUSINESS SEGMENTS
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
December 31,
|
Twelve Months Ended
December 31,
|
(Dollars in
millions)
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Mobile Industries
|
|
|
|
|
Net sales
|
$
|
495.6
|
|
$
|
479.7
|
|
$
|
2,106.5
|
|
$
|
1,965.7
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
(1)
|
$
|
52.9
|
|
$
|
40.0
|
|
$
|
217.1
|
|
$
|
240.1
|
|
EBITDA Margin
(1)
|
10.7
|
%
|
8.3
|
%
|
10.3
|
%
|
12.2
|
%
|
Process Industries
|
|
|
|
|
Net sales
|
$
|
586.4
|
|
$
|
527.6
|
|
$
|
2,390.2
|
|
$
|
2,167.2
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
(1)
|
$
|
137.1
|
|
$
|
104.4
|
|
$
|
621.5
|
|
$
|
506.3
|
|
EBITDA Margin
(1)
|
23.4
|
%
|
19.8
|
%
|
26.0
|
%
|
23.4
|
%
|
Unallocated corporate
expense
|
$
|
(14.6)
|
|
$
|
(11.2)
|
|
$
|
(50.0)
|
|
$
|
(46.1)
|
|
Corporate pension and
other postretirement benefit related income (expense)
(2)
|
12.3
|
|
8.0
|
|
(2.9)
|
|
(0.3)
|
|
Acquisition-related
gain (3)
|
—
|
|
—
|
|
—
|
|
0.9
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
Net sales
|
$
|
1,082.0
|
|
$
|
1,007.3
|
|
$
|
4,496.7
|
|
$
|
4,132.9
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
(1)
|
$
|
187.7
|
|
$
|
141.2
|
|
$
|
785.7
|
|
$
|
700.9
|
|
EBITDA Margin
(1)
|
17.3
|
%
|
14.0
|
%
|
17.5
|
%
|
17.0
|
%
|
|
|
|
|
|
(1) EBITDA is a non-GAAP measure defined as operating
income plus other income (expense) and excluding depreciation and
amortization. EBITDA Margin is a non-GAAP measure defined as EBITDA
as a percentage of net sales. EBITDA and EBITDA Margin are
important financial measures used in the management of the
business, including decisions concerning the allocation of
resources and assessment of performance. Management believes
that reporting EBITDA and EBITDA Margin is useful to investors as
these measures are representative of the core operations of the
segments and Company, respectively.
|
|
|
|
|
|
(2)
Corporate pension and other postretirement benefit related income
(expense) primarily represents actuarial (losses) and gains that
resulted from the remeasurement of plan assets and obligations as a
result of changes in assumptions or experience. The Company
recognizes actuarial (losses) and gains in connection with the
annual remeasurement in the fourth quarter, or if specific events
trigger a remeasurement. Refer to the Retirement Benefit Plans and
Other Postretirement Benefit Plans footnotes within the Company's
annual reports on Form 10-K and quarterly reports on Form 10-Q for
additional discussion.
|
|
|
|
|
|
(3) The
acquisition-related gain represents a bargain purchase price gain
on the acquisition of the assets of Aurora Bearing Company
("Aurora") that closed on November 30, 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
(Dollars in
millions)
|
(Unaudited)
|
|
|
|
December 31,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
331.6
|
|
|
$
|
257.1
|
|
Restricted
cash
|
9.1
|
|
|
0.8
|
|
Accounts receivable,
net
|
699.6
|
|
|
626.4
|
|
Unbilled
receivables
|
103.9
|
|
|
104.5
|
|
Inventories,
net
|
1,191.3
|
|
|
1,042.7
|
|
Other current
assets
|
168.5
|
|
|
182.0
|
|
Total Current
Assets
|
2,504.0
|
|
|
2,213.5
|
|
Property, plant and
equipment, net
|
1,207.4
|
|
|
1,055.3
|
|
Operating lease
assets
|
101.4
|
|
|
118.9
|
|
Goodwill and other
intangible assets
|
1,863.6
|
|
|
1,691.5
|
|
Other assets
|
96.0
|
|
|
91.5
|
|
Total Assets
|
$
|
5,772.4
|
|
|
$
|
5,170.7
|
|
LIABILITIES
|
|
|
|
Accounts
payable
|
$
|
403.9
|
|
|
$
|
430.0
|
|
Short-term debt,
including current portion of long-term debt
|
49.0
|
|
|
53.8
|
|
Income taxes
|
51.3
|
|
|
26.2
|
|
Accrued
expenses
|
508.2
|
|
|
386.6
|
|
Total Current
Liabilities
|
1,012.4
|
|
|
896.6
|
|
Long-term
debt
|
1,914.2
|
|
|
1,411.1
|
|
Accrued pension
benefits
|
160.3
|
|
|
155.6
|
|
Accrued postretirement
benefits
|
31.4
|
|
|
45.8
|
|
Long-term operating
lease liabilities
|
65.2
|
|
|
77.6
|
|
Other non-current
liabilities
|
236.0
|
|
|
206.3
|
|
Total
Liabilities
|
3,419.5
|
|
|
2,793.0
|
|
EQUITY
|
|
|
|
The Timken Company
shareholders' equity
|
2,268.3
|
|
|
2,294.9
|
|
Noncontrolling
interest
|
84.6
|
|
|
82.8
|
|
Total Equity
|
2,352.9
|
|
|
2,377.7
|
|
Total Liabilities and
Equity
|
$
|
5,772.4
|
|
|
$
|
5,170.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
(Dollars in
millions)
|
2022
|
2021
|
|
2022
|
2021
|
Cash Provided by (Used
in)
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
Net Income
|
$
|
99.1
|
|
$
|
66.7
|
|
|
$
|
417.0
|
|
$
|
381.5
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
42.0
|
|
41.3
|
|
|
164.0
|
|
167.8
|
|
Impairment
charges
|
—
|
|
—
|
|
|
38.3
|
|
4.5
|
|
Stock-based
compensation expense
|
8.1
|
|
4.6
|
|
|
30.4
|
|
20.2
|
|
Pension and other
postretirement income
|
(12.5)
|
|
(9.5)
|
|
|
(0.6)
|
|
(6.6)
|
|
Pension and other
postretirement benefit contributions and payments
|
(3.1)
|
|
(6.3)
|
|
|
(14.6)
|
|
(24.5)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
83.5
|
|
71.8
|
|
|
(73.5)
|
|
(55.8)
|
|
Unbilled
receivables
|
20.1
|
|
(18.9)
|
|
|
(26.0)
|
|
6.2
|
|
Inventories
|
1.5
|
|
(71.6)
|
|
|
(145.6)
|
|
(215.8)
|
|
Accounts
payable
|
2.4
|
|
16.2
|
|
|
(10.2)
|
|
76.7
|
|
Accrued
expenses
|
5.1
|
|
5.0
|
|
|
91.9
|
|
55.2
|
|
Income
taxes
|
5.4
|
|
0.1
|
|
|
12.7
|
|
(6.6)
|
|
Other,
net
|
(10.1)
|
|
3.4
|
|
|
(20.0)
|
|
(15.5)
|
|
Net Cash Provided by
Operating Activities
|
$
|
241.5
|
|
$
|
102.8
|
|
|
$
|
463.8
|
|
$
|
387.3
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
Capital
expenditures
|
$
|
(55.9)
|
|
$
|
(44.7)
|
|
|
$
|
(178.4)
|
|
$
|
(148.3)
|
|
Acquisitions, net of
cash received
|
(301.3)
|
|
(0.3)
|
|
|
(453.7)
|
|
(7.5)
|
|
Proceeds from
divestitures, net of cash divested
|
32.9
|
|
—
|
|
|
33.9
|
|
—
|
|
Investments in
short-term marketable securities, net
|
(13.2)
|
|
(12.6)
|
|
|
14.6
|
|
(18.0)
|
|
Other, net
|
6.2
|
|
(0.3)
|
|
|
10.3
|
|
—
|
|
Net Cash Used in
Investing Activities
|
$
|
(331.3)
|
|
$
|
(57.9)
|
|
|
$
|
(573.3)
|
|
$
|
(173.8)
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
Cash dividends paid to
shareholders
|
$
|
(22.5)
|
|
$
|
(22.7)
|
|
|
$
|
(91.7)
|
|
$
|
(92.2)
|
|
Purchase of treasury
shares
|
(18.3)
|
|
(36.4)
|
|
|
(211.6)
|
|
(93.0)
|
|
Proceeds from exercise
of stock options
|
4.3
|
|
0.6
|
|
|
8.5
|
|
26.0
|
|
Payments related to tax
withholding for stock-based compensation
|
(1.2)
|
|
(0.3)
|
|
|
(10.7)
|
|
(23.8)
|
|
Net proceeds (payments)
from credit facilities
|
75.0
|
|
14.8
|
|
|
93.4
|
|
(73.4)
|
|
Net proceeds (payments)
on long-term debt
|
84.1
|
|
(2.9)
|
|
|
419.5
|
|
(12.4)
|
|
Other, net
|
(3.1)
|
|
—
|
|
|
(0.6)
|
|
(0.5)
|
|
Net Cash Provided by
(Used in) Financing Activities
|
$
|
118.3
|
|
$
|
(46.9)
|
|
|
$
|
206.8
|
|
$
|
(269.3)
|
|
Effect of exchange rate
changes on cash
|
10.6
|
|
(2.7)
|
|
|
(14.5)
|
|
(7.4)
|
|
Increase (Decrease) in
Cash, Cash Equivalents and Restricted Cash
|
$
|
39.1
|
|
$
|
(4.7)
|
|
|
$
|
82.8
|
|
$
|
(63.2)
|
|
Cash, Cash Equivalents
and Restricted Cash at Beginning of Period
|
301.6
|
|
262.6
|
|
|
257.9
|
|
321.1
|
|
Cash, Cash Equivalents
and Restricted Cash at End of Period
|
$
|
340.7
|
|
$
|
257.9
|
|
|
$
|
340.7
|
|
$
|
257.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Adjusted Net Income to GAAP Net
Income and Adjusted Earnings Per Share to GAAP Earnings Per
Share:
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciliation is provided as additional relevant information about
the Company's performance deemed useful to investors. Management
believes that the non-GAAP measures of adjusted net income and
adjusted diluted earnings per share are important financial
measures used in the management of the business, including
decisions concerning the allocation of resources and assessment of
performance. Management believes that reporting adjusted net income
and adjusted diluted earnings per share is useful to investors as
these measures are representative of the Company's core
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except share
data)
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2022
|
|
EPS
|
2021
|
|
EPS
|
|
2022
|
|
EPS
|
2021
|
|
EPS
|
Net Income Attributable
to The Timken Company
|
$
|
97.2
|
|
|
$
|
1.32
|
|
$
|
62.9
|
|
|
$
|
0.82
|
|
|
$
|
407.4
|
|
|
$
|
5.48
|
|
$
|
369.1
|
|
|
$
|
4.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment,
restructuring and reorganization charges (2)
|
$
|
3.8
|
|
|
|
$
|
1.8
|
|
|
|
|
$
|
39.5
|
|
|
|
$
|
15.1
|
|
|
|
Corporate pension and
other postretirement benefit related (income)
expense (3)
|
(12.3)
|
|
|
|
(8.0)
|
|
|
|
|
2.9
|
|
|
|
0.3
|
|
|
|
Russia-related charges
(4)
|
0.3
|
|
|
|
—
|
|
|
|
|
15.6
|
|
|
|
—
|
|
|
|
Acquisition-related
charges (5)
|
9.1
|
|
|
|
0.2
|
|
|
|
|
14.8
|
|
|
|
2.3
|
|
|
|
Gain on divestitures
and sale of real estate (6)
|
(2.9)
|
|
|
|
—
|
|
|
|
|
(2.9)
|
|
|
|
—
|
|
|
|
Tax indemnification and
related items
|
0.3
|
|
|
|
0.2
|
|
|
|
|
0.3
|
|
|
|
0.2
|
|
|
|
Noncontrolling interest
of above adjustments
|
0.4
|
|
|
|
(0.2)
|
|
|
|
|
(5.3)
|
|
|
|
—
|
|
|
|
Provision for income
taxes (7)
|
(6.3)
|
|
|
|
2.7
|
|
|
|
|
(24.5)
|
|
|
|
(23.6)
|
|
|
|
Total
Adjustments:
|
(7.6)
|
|
|
(0.10)
|
|
(3.3)
|
|
|
(0.04)
|
|
|
40.4
|
|
|
0.54
|
|
(5.7)
|
|
|
(0.07)
|
|
Adjusted Net Income
Attributable to The Timken Company
|
$
|
89.6
|
|
|
$
|
1.22
|
|
$
|
59.6
|
|
|
$
|
0.78
|
|
|
$
|
447.8
|
|
|
$
|
6.02
|
|
$
|
363.4
|
|
|
$
|
4.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments are pre-tax, with the net tax provision listed
separately.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Impairment, restructuring and
reorganization charges (including items recorded in cost of
products sold) relate to: (i) plant closures; (ii) the
rationalization of certain plants; (iii) severance related to cost
reduction initiatives; (iv) impairment of assets held for sale; and
(v) related depreciation and amortization. Impairment,
restructuring and reorganization charges for 2022 included $29.3
million related to the sale of Timken Aerospace Drives Systems, LLC
("ADS"). The Company re-assesses its operating footprint and cost
structure periodically, and makes adjustments as needed that result
in restructuring charges. However, management believes these
actions are not representative of the Company's core
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
Corporate pension and other
postretirement benefit related (income) expense represents
actuarial (gains) and losses that resulted from the remeasurement
of plan assets and obligations as a result of changes in
assumptions or experience. The Company recognizes actuarial losses
and (gains) in connection with the annual remeasurement in the
fourth quarter, or if specific events trigger a remeasurement.
Refer to the Retirement Benefit Plans and Other Postretirement
Benefit Plans footnotes within the Company's annual reports on Form
10-K and quarterly reports on Form 10-Q for additional
discussion.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
Russia-related charges include impairments or allowances recorded
against certain property, plant and equipment, inventory and trade
receivables to reflect the current impact of Russia's invasion of
Ukraine (and associated sanctions) on the Company's operations. In
addition to impairments and allowances recorded, the Company
recorded a loss on the divestiture of its Timken-Rus Service
Company ooo ("Timken Russia") business during the third quarter of
2022. Refer to Russia Operations in Management Discussion and
Analysis within the Company's annual report on Form 10-K for
additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
Acquisition-related charges represent deal-related expenses
associated with completed transactions and certain unsuccessful
transactions, as well as any resulting inventory step-up impact. In
addition, the 2021 acquisition-related charges includes an
acquisition-related gain due to measurement period adjustments to
the bargain purchase gain on the acquisition of the assets of
Aurora that closed on November 30, 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
Represents the net gain resulting from divestitures and the sale of
real estate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
Provision for income taxes includes the net tax impact on pre-tax
adjustments (listed above), the impact of discrete tax items
recorded during the respective periods as well as other adjustments
to reflect the use of one overall effective tax rate on adjusted
pre-tax income in interim periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to GAAP Net Income, EBITDA
Margin to Net Income as a Percentage of Sales, and EBITDA Margin,
After Adjustments, to Net Income as a Percentage of Sales, and
EBITDA, After Adjustments, to Net Income:
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
The following
reconciliation is provided as additional relevant information about
the Company's performance deemed useful to investors.
Management believes consolidated earnings before interest,
taxes, depreciation and amortization (EBITDA) is a non-GAAP measure
that is useful to investors as it is representative of the
Company's performance and that it is appropriate to compare GAAP
net income to consolidated EBITDA. Management also believes that
adjusted EBITDA, adjusted EBITDA margin and EBITDA margin are
useful to investors as they are representative of the Company's
core operations and are used in the management of the business,
including decisions concerning the allocation of resources and
assessment of performance.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2022
|
Percentage to
Net Sales
|
2021
|
Percentage to
Net Sales
|
|
2022
|
Percentage to
Net Sales
|
2021
|
Percentage to
Net Sales
|
Net Income
|
$
|
99.1
|
|
9.2
|
%
|
$
|
66.7
|
|
6.6
|
%
|
|
$
|
417.0
|
|
9.3
|
%
|
$
|
381.5
|
|
9.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
25.0
|
|
|
20.0
|
|
|
|
133.9
|
|
|
95.1
|
|
|
Interest
expense
|
22.7
|
|
|
13.8
|
|
|
|
74.6
|
|
|
58.8
|
|
|
Interest
income
|
(1.1)
|
|
|
(0.6)
|
|
|
|
(3.8)
|
|
|
(2.3)
|
|
|
Depreciation and
amortization
|
42.0
|
|
|
41.3
|
|
|
|
164.0
|
|
|
167.8
|
|
|
Consolidated
EBITDA
|
$
|
187.7
|
|
17.3
|
%
|
$
|
141.2
|
|
14.0
|
%
|
|
$
|
785.7
|
|
17.5
|
%
|
$
|
700.9
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Impairment,
restructuring and reorganization charges (1)
|
$
|
3.8
|
|
|
$
|
1.8
|
|
|
|
$
|
39.5
|
|
|
$
|
14.3
|
|
|
Corporate pension and
other postretirement benefit
related (income) expense (2)
|
(12.3)
|
|
|
(8.0)
|
|
|
|
2.9
|
|
|
0.3
|
|
|
Russia-related charges
(3)
|
0.3
|
|
|
—
|
|
|
|
15.6
|
|
|
—
|
|
|
Acquisition-related
charges (4)
|
9.1
|
|
|
0.2
|
|
|
|
14.8
|
|
|
2.3
|
|
|
Gain on divestitures
and sale of real estate (5)
|
(2.9)
|
|
|
—
|
|
|
|
(2.9)
|
|
|
—
|
|
|
Tax indemnification and
related items
|
0.3
|
|
|
0.2
|
|
|
|
0.3
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Adjustments
|
(1.7)
|
|
(0.1)
|
%
|
(5.8)
|
|
(0.6)
|
%
|
|
70.2
|
|
1.5
|
%
|
17.1
|
|
0.4
|
%
|
Adjusted
EBITDA
|
$
|
186.0
|
|
17.2
|
%
|
$
|
135.4
|
|
13.4
|
%
|
|
$
|
855.9
|
|
19.0
|
%
|
$
|
718.0
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
|
|
(1) Impairment, restructuring and reorganization charges
(including items recorded in cost of products sold) relate to: (i)
plant closures; (ii) the rationalization of certain plants; (iii)
severance related to cost reduction initiatives; and (iv)
impairment of assets held for sale. Impairment, restructuring and
reorganization charges for 2022 included $29.3 million related to
the sale of ADS. The Company re-assesses its operating footprint
and cost structure periodically, and makes adjustments as needed
that result in restructuring charges. However, management
believes these actions are not representative of the Company's core
operations.
|
|
|
|
|
|
|
|
|
|
|
(2)
Corporate pension and other postretirement benefit related (income)
expense represents actuarial (gains) and losses that resulted from
the remeasurement of plan assets and obligations as a result of
changes in assumptions or experience. The Company recognizes
actuarial losses and (gains) in connection with the annual
remeasurement in the fourth quarter, or if specific events trigger
a remeasurement. Refer to the Retirement Benefit Plans and Other
Postretirement Benefit Plans footnotes within the Company's annual
reports on Form 10-K and quarterly reports on Form 10-Q for
additional discussion.
|
|
|
|
|
|
|
|
|
|
|
(3)
Russia-related charges include impairments or allowances recorded
against certain property, plant and equipment, inventory and trade
receivables to reflect the current impact of Russia's invasion of
Ukraine (and associated sanctions) on the Company's operations. In
addition to impairments and allowances recorded, the Company
recorded a loss on the divestiture of its Timken Russia business
during the third quarter of 2022. Refer to Russia Operations in
Management Discussion and Analysis within the Company's annual
report on Form 10-K for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
Acquisition-related charges represent
deal-related expenses associated with completed transactions and
certain unsuccessful transactions, as well as any resulting
inventory step-up impact. In addition, the 2021 acquisition-related
charges includes an acquisition-related gain due to measurement
period adjustments to the bargain purchase gain on the acquisition
of the assets of Aurora that closed on November 30,
2020.
|
|
|
|
|
|
|
|
|
|
|
(5)
Represents the net gain resulting from
divestitures and the sale of real estate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of segment EBITDA Margin, After
Adjustments, to segment EBITDA as a Percentage of Sales and segment
EBITDA, After Adjustments, to segment EBITDA:
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
The following
reconciliation is provided as additional relevant information about
the Company's Mobile Industries and Process Industries segment
performance deemed useful to investors. Management believes that
non-GAAP measures of adjusted EBITDA and adjusted EBITDA margin for
the segments are useful to investors as they are representative of
each segment's core operations and are used in the management of
the business, including decisions concerning the allocation of
resources and assessment of performance.
|
|
|
|
|
|
|
|
|
|
|
|
Mobile Industries
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
(Dollars in millions)
|
2022
|
Percentage to Net Sales
|
|
2021
|
Percentage to Net
Sales
|
|
2022
|
Percentage to Net Sales
|
2021
|
Percentage to Net
Sales
|
Earnings before
interest, taxes, depreciation and
amortization (EBITDA)
|
$
|
52.9
|
|
10.7
|
%
|
|
$
|
40.0
|
|
8.3
|
%
|
|
$
|
217.1
|
|
10.3
|
%
|
$
|
240.1
|
|
12.2
|
%
|
Impairment,
restructuring and reorganization charges (1)
|
2.6
|
|
|
|
1.0
|
|
|
|
35.4
|
|
|
7.3
|
|
|
Russia-related charges
(2)
|
0.2
|
|
|
|
—
|
|
|
|
16.8
|
|
|
—
|
|
|
Acquisition-related
charges (3)
|
3.1
|
|
|
|
0.1
|
|
|
|
3.1
|
|
|
0.7
|
|
|
Gain on divestitures
and sale of real estate (4)
|
(2.9)
|
|
|
|
—
|
|
|
|
(2.7)
|
|
|
—
|
|
|
Tax indemnification and
related items
|
0.3
|
|
|
|
0.2
|
|
|
|
0.3
|
|
|
0.2
|
|
|
Adjusted
EBITDA
|
$
|
56.2
|
|
11.3
|
%
|
|
$
|
41.3
|
|
8.6
|
%
|
|
$
|
270.0
|
|
12.8
|
%
|
$
|
248.3
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Process Industries
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
(Dollars in millions)
|
2022
|
Percentage to
Net Sales
|
|
2021
|
Percentage to
Net Sales
|
|
2022
|
Percentage to
Net Sales
|
2021
|
Percentage to
Net Sales
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
$
|
137.1
|
|
23.4
|
%
|
|
$
|
104.4
|
|
19.8
|
%
|
|
$
|
621.5
|
|
26.0
|
%
|
$
|
506.3
|
|
23.4
|
%
|
Impairment,
restructuring and reorganization charges (1)
|
1.2
|
|
|
|
0.8
|
|
|
|
4.1
|
|
|
7.0
|
|
|
Russia-related charges
(2)
|
0.1
|
|
|
|
—
|
|
|
|
(1.2)
|
|
|
—
|
|
|
Acquisition-related
charges (3)
|
4.5
|
|
|
|
0.1
|
|
|
|
8.0
|
|
|
0.6
|
|
|
Gain on divestitures
and sale of real estate (4)
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
|
—
|
|
|
Adjusted
EBITDA
|
$
|
142.9
|
|
24.4
|
%
|
|
$
|
105.3
|
|
20.0
|
%
|
|
$
|
632.2
|
|
26.4
|
%
|
$
|
513.9
|
|
23.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Impairment, restructuring and
reorganization charges (including items recorded in cost of
products sold) relate to: (i) plant closures; (ii) the
rationalization of certain plants; (iii) severance related to cost
reduction initiatives; and (iv) impairment of assets held for sale.
Impairment, restructuring and reorganization charges for 2022
included $29.3 million related to the sale of ADS. The Company
re-assesses its operating footprint and cost structure
periodically, and makes adjustments as needed that result in
restructuring charges. However, management believes these
actions are not representative of the Company's core
operations.
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Russia-related charges include impairments or allowances recorded
against certain property, plant and equipment, inventory and trade
receivables to reflect the current impact of Russia's invasion of
Ukraine (and associated sanctions) on the Company's operations. In
addition to impairments and allowances recorded, the Company
recorded a loss on the divestiture of its Timken Russia business
during the third quarter of 2022. Refer to Russia Operations in
Management Discussion and Analysis within the Company's annual
report on Form 10-K for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
(3) The
acquisition-related charges represent the inventory step-up impact
of the acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
(4)
Represents the net gain resulting from
divestitures and the sale of real estate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Debt to Net Debt, the Ratio
of Net Debt to Capital, and the Ratio of Net Debt to Adjusted
EBITDA:
|
(Unaudited)
|
|
|
|
|
These reconciliations
are provided as additional relevant information about the Company's
financial position deemed useful to investors. Capital, used for
the ratio of net debt to capital, is a non-GAAP measure defined as
total debt less cash and cash equivalents plus total shareholders'
equity. Management believes Net Debt, the Ratio of Net Debt to
Capital, Adjusted EBITDA (see prior page), and the Ratio of Net
Debt to Adjusted EBITDA are important measures of the Company's
financial position, due to the amount of cash and cash equivalents
on hand. The Company presents net debt to adjusted EBITDA because
it believes it is more representative of the Company's financial
position as it is reflective of the ability to cover its net debt
obligations with results from its core operations.
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
December 31,
2022
|
December 31,
2021
|
Short-term debt,
including current portion of long-term debt
|
|
|
$
|
49.0
|
|
$
|
53.8
|
|
Long-term
debt
|
|
|
1,914.2
|
|
1,411.1
|
|
Total
Debt
|
|
|
$
|
1,963.2
|
|
$
|
1,464.9
|
|
Less: Cash and cash
equivalents
|
|
|
(331.6)
|
|
(257.1)
|
|
Net Debt
|
|
|
$
|
1,631.6
|
|
$
|
1,207.8
|
|
|
|
|
|
|
Total Equity
|
|
|
$
|
2,352.9
|
|
$
|
2,377.7
|
|
Ratio of Net Debt to
Capital
|
|
|
40.9
|
%
|
33.7
|
%
|
|
|
|
|
|
Adjusted EBITDA for the
Twelve Months Ended
|
|
|
$
|
855.9
|
|
$
|
718.0
|
|
Ratio of Net Debt to
Adjusted EBITDA
|
|
|
1.9
|
|
1.7
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow to GAAP Net Cash
Provided by Operating Activities:
|
(Unaudited)
|
|
|
|
|
Management believes
that free cash flow is a non-GAAP measure that is useful to
investors because it is a meaningful indicator of cash generated
from operating activities available for the execution of its
business strategy.
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
Three Months Ended
December 31,
|
Twelve Months Ended
December 31,
|
|
2022
|
2021
|
2022
|
2021
|
Net cash provided by
operating activities
|
$
|
241.5
|
|
$
|
102.8
|
|
$
|
463.8
|
|
$
|
387.3
|
|
Less: capital
expenditures
|
(55.9)
|
|
(44.7)
|
|
(178.4)
|
|
(148.3)
|
|
Free cash
flow
|
$
|
185.6
|
|
$
|
58.1
|
|
$
|
285.4
|
|
$
|
239.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Sales to Organic
Sales
|
(Unaudited)
|
|
|
|
|
|
|
The following
reconciliation is provided as additional relevant information about
the Company's performance deemed useful to investors. Management
believes that net sales, excluding the impact of acquisitions,
divestitures and foreign currency exchange rate changes, allow
investors and the Company to meaningfully evaluate the percentage
change in net sales on a comparable basis from period to
period.
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2022
|
|
Three Months
Ended
December 31, 2021
|
|
$ Change
|
% Change
|
Net sales
|
$
|
1,082.0
|
|
|
$
|
1,007.3
|
|
|
$
|
74.7
|
|
7.4
|
%
|
Less: Acquisitions and
divestitures
|
17.8
|
|
|
—
|
|
|
17.8
|
|
NM
|
Currency
|
(45.4)
|
|
|
—
|
|
|
(45.4)
|
|
NM
|
Net sales, excluding
the impact of acquisitions, divestitures and currency
|
$
|
1,109.6
|
|
|
$
|
1,007.3
|
|
|
$
|
102.3
|
|
10.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2022
|
|
Twelve Months
Ended
December 31, 2021
|
|
$ Change
|
% Change
|
Net sales
|
$
|
4,496.7
|
|
|
$
|
4,132.9
|
|
|
$
|
363.8
|
|
8.8
|
%
|
Less: Acquisitions and
divestitures
|
28.2
|
|
|
—
|
|
|
28.2
|
|
NM
|
Currency
|
(142.4)
|
|
|
—
|
|
|
(142.4)
|
|
NM
|
Net sales, excluding
the impact of acquisitions, divestitures and currency
|
$
|
4,610.9
|
|
|
$
|
4,132.9
|
|
|
$
|
478.0
|
|
11.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Earnings per Share to GAAP
Earnings per Share for Full Year 2023
Outlook:
|
(Unaudited)
|
The following
reconciliation is provided as additional relevant information about
the Company's outlook deemed useful to investors. Forecasted
full year adjusted diluted earnings per share is an important
financial measure that management believes is useful to investors
as it is representative of the Company's expectation for the
performance of its core business operations.
|
|
|
|
|
|
Low End Earnings
Per Share
|
|
High End Earnings
Per Share
|
Forecasted full year
GAAP diluted earnings per share
|
$
|
5.80
|
|
|
$
|
6.40
|
|
|
|
|
|
Forecasted
Adjustments:
|
|
|
|
Restructuring and other special items,
net (1)
|
0.20
|
|
|
0.20
|
|
Forecasted full year
adjusted diluted earnings per share (prior definition)
|
$
|
6.00
|
|
|
$
|
6.60
|
|
Acquisition-related
intangible amortization expense, net
|
0.50
|
|
|
0.50
|
|
Forecasted full year
adjusted diluted earnings per share (excluding intangible
amortization expense)
|
$
|
6.50
|
|
|
$
|
7.10
|
|
|
|
|
|
(1)
Restructuring and other special items, net do not include the
impact of any potential future mark-to-market pension and other
postretirement remeasurement adjustments, because the amounts will
not be known until incurred.
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE The Timken Company