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THE TIMKEN COMPANY REPORTS IMPROVED PERFORMANCE

 CANTON, Ohio, April 20 /PRNewswire/ -- An effective combination of administrative streamlining, increased manufacturing efficiency and cost-cutting measures driven by associates served to improve The Timken Company's financial performance. For the quarter ended March 31, both sales and income before required accounting changes surpassed results achieved in the previous two quarters.
 "We are pleased to see the efforts of our associates show up in improved financial performance," said Joseph F. Toot, Jr., president and chief executive officer. "Their work is putting our company in a stronger position to accomplish more positive financial results. This improving performance takes on even greater importance when compared to results reported by many of our competitors. We have much more to do, however, to achieve better returns for our shareholders."
 Continuing efforts to make structural changes in the company's administrative activities resulted in selling, administrative and general expenses declining to $69.7 million compared to $73.3 million in 1992's first quarter.
 "The many activities now underway in our plants and offices are improving both our efficiency and effectiveness," said Toot. "This progress reflects our commitment to improving financial results regardless of worldwide economic conditions."
 Net sales for the first quarter of 1993 increased to their highest level since mid-1991 as growth in the United States overcame significant declines in Europe, where volume is down considerably and severe price pressures persist. Net sales increased to $422.5 million from $420.9 million a year earlier. Gross profit, which reflects ongoing expense associated with the required accounting changes, decreased to $87.3 million from $90.8 million in 1992's first quarter. Income before the cumulative effect of the accounting changes fell to $3.2 million from $4.9 million. Results by all three of the above measures, however, exceed those recorded in both the third and fourth quarters of 1992.
 The Steel Business, continuing to capitalize on improved manufacturing practices that shorten lead times and enhance its competitive position, increased sales nearly 6 percent over 1992's first quarter. Led by demand from steel bar customers, increases occurred in all product lines. Recently announced price increases were limited and had little effect on first quarter performance.
 In the Bearing Business, stronger demand in the United States was offset by significant declines in Europe, which remains in a deep recession that began during the fourth quarter of 1992. Overall, bearing sales decreased by about 2 percent compared to the year-earlier period. The sales mix continues to be skewed toward lower-margin product. Automotive and industrial markets grew in the United States, while aerospace markets weakened. In Europe, growth was limited to railroad markets.
 During the first quarter, the company and its subsidiaries adopted three new Financial Accounting Standards Board requirements: FAS 106, "Accounting for Postretirement Benefits Other Than Pensions," FAS 109, "Accounting for Income Taxes," and FAS 112, "Employers' Accounting for Postemployment Benefits." The cumulative effect of these actions reduced net income by $254.3 million, most of which was related to FAS 106. This is lower than the $265.0 million estimate for FAS 106 alone stated in the 1992 Annual Report because of changes in benefit plans and medical cost containment efforts. In addition, the ongoing expense associated with these standards, primarily FAS 106, reduced first quarter operating income by approximately $3.0 million. The company's net loss for the quarter totaled $251.1 million.
 Also during the quarter, the company announced that British Timken's Daventry bearing manufacturing operations would be consolidated into its Duston Bearing Plant by mid-1994. This will result in improved utilization of plant assets and enhanced customer service. Because costs for the consolidation were accounted for in 1991, there will be no significant financial impact in 1993.
 The Timken Company (NYSE: TKR) is a leading manufacturer of highly engineered bearings and alloy steels. The company employs some 16,000 people worldwide and recorded 1992 sales of more than $1.6 billion.
 Financial Summary -- The Timken Company and Subsidiaries
 Consolidated Statements of Income
 First Quarter Ended March 31
 (Thousands of dollars,
 except share data.) 1993 1992
 Net sales $422,477 $420,936
 Cost of products sold 335,165 330,166
 Gross profit $87,312 $90,770
 Selling, administrative
 and general expenses 69,731 73,281
 Operating income $17,581 $17,489
 Other income (expense):
 Interest expense ($8,085) ($6,923)
 Other income (expense) - net: (3,268) (1,563)
 Income before income taxes
 and cumulative effect of
 accounting changes $6,228 $9,003
 Provision for income taxes 3,046 4,096
 Income before cumulative
 effect of accounting changes $3,182 $4,907
 Cumulative effect of accounting
 changes on prior years (net of
 income taxes of $132,971) ($254,263) -0-
 Net income (loss) ($251,081) $4,907
 Income per share
 Income before cumulative effect of
 accounting changes $0.10 $0.16
 Cumulative effect of accounting
 changes ($8.32) -0-
 Net income (loss) per share ($8.22) $0.16
 Average shares outstanding 30,562,890 29,950,425
 Consolidated Balance Sheets
 March 31 Dec. 31
 (Thousands of dollars.) 1993 1992
 ASSETS
 Cash and cash equivalents $1,017 $7,863
 Accounts receivable 223,811 198,549
 Inventories 304,511 310,947
 Deferred income taxes 49,369 38,658
 Total current assets $578,708 $556,017
 Property, plant and equipment 1,045,978 1,049,004
 Deferred income taxes 32,172 -0-
 Other assets 134,453 133,429
 Total assets $1,791,311 $1,738,450
 LIABILITIES
 Accounts payable and other
 liabilities $156,508 $152,877
 Short-term debt and commercial paper 134,545 147,038
 Accrued expenses 133,249 90,549
 Total current liabilities $424,302 $390,464
 Long-term debt 173,409 173,477
 Accrued pension cost 104,273 101,300
 Accrued postretirement benefits 360,389 -0-
 Deferred income taxes -0- 88,146
 Total liabilities $1,062,373 $753,387
 SHAREHOLDERS' EQUITY $728,938 $985,063
 Total liabilities and equity $1,791,311 $1,738,450
 -0- 4/20/93
 /CONTACT: Keith Price of The Timken Company, 216-471-3825/
 (TKR)


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

BM -- CL013 -- 7942 04/20/93 10:38 EDT
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Date:Apr 20, 1993
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