Canton, OH — Jan. 30, 2002 — The Timken Company has reported that its sales fell 8% in 2001, to US$2.4 billion from $2.6 billion in 2000, resulting in a net loss of $5.6 million for 2001.
Chairman and CEO W.R. “Tim” Timken Jr. said, “While demand was weak and sales were down $200 million in the worst U.S. industrial manufacturing recession since the 1930s, we managed to hold our loss for the full year to $5.6 million, excluding special items. This reflects the aggressive actions we took during the year.”
In 2001, Timken reduced its workforce by 8%, reduced floor space for bearing manufacture by 350,000 sq ft (4%) and achieved annualized savings of about $21 million, according to president and CEO Jim Griffith.
Timken cited a number of factors affecting its industrial business performance, including weaker sales of products for industrial applications in North America, especially in the industrial aftermarket.
Looking toward 2002, Timken is projecting some basic economic improvement. The company said, “As we enter 2002, we agree with the consensus opinion that the overall U.S. economy should improve, especially in the second half. Automotive markets are expected to be weaker in 2002 versus 2001.
“However, new automotive product launches and the positive impact of the Duston, England, bearing plant closing should improve Timken performance. Industrial markets are expected to improve in 2002, and Timken performance should rebound from levels in the second half of 2001 as inventory depletion ends and the company realizes the full-year impact of the Columbus, Ohio, bearing plant closing. The outlook for automotive and industrial markets applies both to the company’s bearing and alloy steel products.”
Timken is continuing an ongoing restructuring and reorganization effort.