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THE TIMKEN COMPANY REPORTS HIGHER INCOME FOR 1992 AND FOURTH QUARTER

 CANTON, Ohio, Feb. 1 /PRNewswire/ -- The Timken Company (NYSE: TKR) today reported 1992 net income of $4.5 million. "While this is very modest, it is important to recognize the very good work on the part of all of our associates in the company during these difficult times," said Joseph F. Toot, Jr., president and chief executive officer.
 More efficient manufacturing, intensified streamlining and cost containment efforts all contributed to the $13.5 million improvement over 1991 earnings before restructuring costs. This was achieved despite a slight drop in sales. The company recorded higher sales and a small profit in 1992's fourth quarter.
 "Our results are not what they should be," continued Toot. "Many industrial economies around the world remain in recession, holding down demand for our products. Because of this and excess capacity in our industries, competition is fierce and prices remain low. We do not expect this to change. Our goal is to earn acceptable profits in this environment and not depend upon economic recovery to improve financial performance. We are working to do just that and, as a result, changing the way we do business. In our plants, we are improving manufacturing processes, implementing innovative ideas from our associates and finding lower-cost ways to provide products for our customers. Our administrative streamlining effort continues to identify savings. While designed primarily to reduce costs, the effort will also improve our effectiveness. This work will translate into improved customer service, which will lead to better company performance."
 1992 Annual Results
 Continued weak demand and worldwide excess capacity in the bearing and steel industries contributed to the slight drop in net sales to $1.64 billion from $1.65 billion in 1991. These factors combined to keep prices at low levels. Reducing unit costs and increasing plant operating levels helped bring about an increase in gross profit to $345.8 million from $337.5 million a year earlier. Net income increased to $4.5 million compared to a net loss of $35.7 million in 1991. The net loss in 1991 included a $26.7 million charge for restructuring.
 Bearing Business sales rose about 3.5 percent in 1992, with a sales mix skewed toward lower-margin product. Automotive markets grew, while industrial and aerospace markets weakened. Ideas contributed by manufacturing associates helped the Bearing Business stabilize production levels, reduce unit costs and overcome the effects of the shift in sales mix. Sales in the Steel Business fell about 8.7 percent from 1991 levels. Much of this erosion occurred in higher-margin products in energy-related industries. Taking advantage of improved manufacturing processes and continued teamwork, the Steel Business increased operating levels and manufacturing efficiencies, lowered raw material costs and absorbed expenses associated with the start-up of new facilities.
 Fourth Quarter Results
 Led by stronger demand from steel bar customers, net sales for the fourth quarter increased 2.6 percent to $398.2 million from $388.1 million a year earlier. Sales in the Bearing Business increased slightly but were skewed toward lower-margin products. Gross profit was 20.6 percent of sales versus 21.3 percent in 1991. Two consecutive years of inventory reductions have removed more than $68 million from inventories. These reductions produced LIFO income credits of $11 million in 1991 and $0.5 million in 1992. Excluding the effect of these inventory credits, gross profit would have been 20.4 percent in 1992 and 18.4 percent in 1991. The company realized fourth quarter net income of $0.1 million, compared to a net loss of $36.2 million a year earlier. The 1991 quarter included the $26.7 million charge for a five-year program to streamline operations and improve results.
 During the quarter, close management of working capital, reduced spending and the delay of capital projects allowed the company to decrease total debt by $32.8 million. The debt to capital ratio is 24.5 percent, lower than many industrial companies. In November, manufacturing associates in Canton, Columbus and Wooster, Ohio, represented by the United Steelworkers of America, ratified a new four- year contract, which expires in 1997.
 The company will adopt FAS No. 106, "Accounting for Post-retirement Benefits Other than Pensions," in the first quarter of 1993.
 The Timken Company (NYSE: TKR) is a leading manufacturer of highly engineered bearings and alloy steels. The company employs more than 16,500 people worldwide.
 Financial Summary -- The Timken Company and Subsidiaries
 Consolidated Statements of Income
 Fourth Quarter Ended Dec. 31 Year Ended Dec. 31
 (Thousands of dollars, except share data.)
 1992 1991 1992 1991
 Net sales $398,175 $388,104 1,642,310 $1,647,425
 Cost of products sold 316,275 305,504 1,296,511 $1,309,893
 Gross Profit $81,900 $82,600 $345,799 $337,532
 Selling, administrative
 & general expenses 69,737 72,247 296,826 297,660
 Restructuring costs -0- 41,000 -0- 41,000
 Operating Income (Loss) $12,163 ($30,647) $48,973 ($1,128)
 Other income (expense):
 Interest expense ($7,496) ($7,406) ($28,660) ($26,673)
 Other income
 (expense) - net: (1,835) (5,870) (6,882) (14,149)
 Income (Loss)Before
 Taxes $2,832 ($43,923) $13,431 ($41,950)
 Provision (credit) for
 income taxes 2,720 (7,713) 8,979 (6,263)
 Net Income (Loss) $112 ($36,210) $4,452 ($35,687)
 Net Income (Loss) Per
 Share $0.00 ($1.22) $0.15 ($1.21)
 Average shares
 outstanding 30,431,526 29,781,609 30,196,346 29,599,552
 Consolidated Balance Sheets
 Dec. 31 Dec. 31
 (Thousands of dollars.) 1992 1991
 ASSETS
 Cash and cash equivalents $7,863 $2,273
 Accounts receivable 198,549 188,182
 Inventories 310,947 320,076
 Other 38,658 51,965
 Total Current Assets $556,017 $562,496
 Property, plant & equipment 1,049,004 1,058,872
 Other assets 133,429 137,771
 Total Assets $1,738,450 $1,759,139
 LIABILITIES
 Accounts payable and other liabilities $152,877 $169,442
 Short-term debt and commercial paper 147,038 138,521
 Accrued expenses 90,549 105,583
 Total Current Liabilities $390,464 $413,546
 Long-term debt 173,477 134,583
 Accrued pension cost 101,300 90,022
 Deferred income taxes 88,146 102,017
 Total Liabilities $753,387 $740,168
 SHAREHOLDERS' EQUITY $985,063 $1,018,971
 Total Liabilities and Equity $1,738,450 $1,759,139
 -0- 2/1/93
 /CONTACT: Keith Price of The Timken Company, 216-471-3825/
 (TKR)


CO: The Timken Company ST: Ohio IN: AUT SU: ERN

KK -- CL002 -- 1138 02/01/93 08:05 EST
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