Timken refocuses on industrial sector as it sells its Needle Roller Bearings Business
Canton, OH -- The Timken Company has completed the sale of its Needle Roller Bearings Business to Japan’...
Canton, OH — The Timken Company has completed the sale of its Needle Roller Bearings Business to Japan’s JTEKT Corp.
Timken received approximately US$330 million, including retained receivables, from the sale. These proceeds will be used for general company purposes, while also providing additional liquidity, bolstering the company’s financial position in a year it expects to generate strong cash from operations.
“The completion of this deal is a win for everyone involved,” said James W. Griffith, Timken president and chief executive officer. “The Needle Roller Bearings Business’ new owner is committed to the automotive industry, which provides new opportunity to customers and the talented associates who are transferring with the deal.
“As to Timken, we’ve fundamentally changed our portfolio of business, in line with our strategy to optimize the enterprise. The resources now in hand can be used to create greater value for our customers and shareholders, including pursuit of new growth in attractive industrial sectors.”
Part of Timken’s acquisition of Torrington in 2003, the Needle Roller Bearings Business manufactures highly engineered needle roller bearings for automotive and industrial applications. Facilities that became part of JTEKT on January 1, 2010, are in these locations:
– North America: Cairo, GA; Dahlonega, GA; Sylvania, GA; Greenville, SC; Walhalla, SC; and Bedford, QC.
– Europe: Brno and Olomouc, Czech Republic; Maromme, Moult, and Vierzon, France; Kuensebeck, Germany; and Bilbao, Spain.
– Asia: LiYuan District, China.
For the first nine months of 2009, the Needle Roller Bearings Business had about US$289 million in sales and incurred a loss of about US$59 million. While the divestiture will reduce Timken’s sales for the full year, the net effect on the company’s earnings is expected to be positive.
About the Needle Roller Bearings Business
A leading global manufacturer of highly engineered needle roller bearings for automotive and mobile applications, the Needle Roller Bearings business was originally formed in 1912, and acquired by Timken through its acquisition of The Torrington Company in February 2003. The business had US$621 million in sales in 2008 and employs about 3,400 associates.
With 12 manufacturing facilities and three technology centres around the world, the Needle Roller Bearings Business primarily serves original-equipment and tier-one automotive manufacturers, including customers in North America, Europe and Asia.
Additional information about Timken, the Needle Roller Bearings Business and JTEKT is available online at www.timken.com/needlebearings.