Timken Industrial Group sales boosted by Torrington acquisition
Canton, OH -- The Timken Company's Industrial Group sales in the third quarter, reported Oct. 23, 2003, were $386.5...
Canton, OH — The Timken Company’s Industrial Group sales in the third quarter, reported Oct. 23, 2003, were $386.5 million, compared with $239.7 million in 2002. The sales increase reflected the addition of The Torrington Company (which was acquired in Feb. 2003), the effect of currency translation and growth in certain markets.
EBIT was $35.1 million, compared with $24.3 million a year earlier. Excluding Torrington, sales were $262.4 million and EBIT was $31.5 million.
The Industrial Group benefited from continued growth in the automotive distribution business, improved performance in the rail business and in Europe, exiting of low-margin business and manufacturing cost reductions.
Continuing weakness in industrial markets and high levels of distributor inventories for Torrington industrial products dampened the positive impact of these factors. The company continues to work with its distributors in managing inventory levels.
For the first nine months, Industrial Group sales were $1.1 billion, compared with $724.1 million a year earlier. EBIT for the first nine months was $83.5 million versus $55.3 million in 2002. Excluding the effect of Torrington, sales for the first nine months of 2003 were $773.0 million and EBIT was $79.1 million.
The results for all periods reflect a reorganization of the Automotive and Industrial Groups that occurred in the first quarter of 2003. Automotive distribution operations are now reported as part of the Industrial Group. Additionally, company sales to emerging markets — principally in central and eastern Europe and Asia — previously were reported as part of the Industrial Group. Emerging market sales to automotive original equipment manufacturers are now included in the Automotive Group.