- Sales of $1.09 billion in
the fourth quarter, up 1 percent from last year
- Fourth-quarter earnings per share of $0.83; adjusted EPS of $1.37
- Record full-year sales of $4.8
billion, up 6 percent from last year
- Full-year 2023 EPS of $5.47; record adjusted EPS of $7.05
- Full-year net income margin of 8.3 percent; adjusted
EBITDA margin of 19.7 percent
- Company provides initial estimate for 2024 EPS of
$4.90-$5.30, with adjusted EPS of $5.80-$6.20 on
lower anticipated demand
NORTH
CANTON, Ohio, Feb. 5, 2024
/PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a
global leader in engineered bearings and industrial motion
products, today reported fourth-quarter 2023 sales
of $1.09 billion, up 0.9 percent from the same period a
year ago. The increase was driven by the benefit of acquisitions
(net of divestitures), higher pricing and favorable foreign
currency translation, partially offset by lower volume across
several industrial sectors including wind energy and
off-highway.
Timken posted net income in the fourth quarter
of $58.7 million or $0.83 per diluted share. This compares to
net income of $97.2 million or $1.32 per diluted
share for the same period a year ago.
Excluding special items (detailed in the attached tables),
adjusted net income in the fourth quarter was $97.3 million or $1.37 per diluted share. This compares to
adjusted net income of $98.2 million
or $1.34 per diluted share for the
same period in 2022. Adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) in the quarter
was $195.4 million or 17.9 percent of sales,
compared with $186.0 million or 17.2 percent of
sales in the fourth quarter of last year.
Net cash from operations for the fourth quarter was $128.3 million, and free cash flow was
$75.4 million. During the quarter,
Timken returned $55.7 million of cash
to shareholders through dividends and the repurchase of 450
thousand shares of company stock. In November, the company closed
on the previously announced acquisition of iMECH, and in December,
Timken completed the acquisition of Lagersmit, which adds
engineered sealing solutions to its industrial motion portfolio.
Collectively, these two transactions are expected to add around
$70 million of pro forma annual
revenue and be accretive to company operating margins (excluding
acquisition-related costs).
"We delivered excellent results in the fourth quarter to close
out another record year for The Timken Company," said Richard G. Kyle, Timken president and chief
executive officer. "In 2023, we grew revenue, expanded margins and
set a new all-time record for adjusted earnings per share as our
team executed well in this dynamic environment. The year also
marked several other significant accomplishments, including six
acquisitions and increasing our annual dividend for the
10th consecutive year. Through consistent execution of
our profitable growth and capital allocation strategies, we
continue to scale and enhance our position as a diversified
industrial leader and improve our ability to deliver higher levels
of performance."
2023 Full-Year Results and Highlights
For 2023, sales were a record $4.8
billion, up 6.1 percent compared with 2022. The increase was
primarily driven by the benefit of acquisitions (net) and the
impact of higher pricing, partially offset by lower volume and
unfavorable foreign currency translation. Organically, 2023 sales
were up 1.1 percent versus 2022.
Net income was $394.1 million or
$5.47 per diluted share for the year,
compared with net income of $407.4
million or $5.48 per diluted
share a year ago. The modest year-over-year decrease reflects the
impact of lower volume, higher operating costs and interest
expense, unfavorable foreign currency, and the impact of higher
pension remeasurement, impairment, restructuring and
acquisition-related charges, partially offset by the impact of
favorable price/mix, lower material & logistics costs, and the
net benefit of acquisitions.
Excluding special items (detailed in the attached tables),
adjusted net income was $508.1 million or a record $7.05 per diluted share in 2023. This compares
with adjusted net income of $480.3
million or adjusted earnings of $6.46 per diluted share in 2022. Adjusted EBITDA
for the year was $939.7 million or 19.7 percent
of sales, compared with $855.9 million or 19.0
percent of sales in 2022.
Net cash from operations for the full year was $545.2 million, and free cash flow was
$357.4 million. Timken ended the year
with net debt to adjusted EBITDA at 2.1 times.
Among other highlights in 2023, the company:
- Expanded its Industrial Motion segment with the acquisitions of
Nadella, Des-Case, Rosa Sistemi and Lagersmit. The company also
bolstered its engineered bearings portfolio with the acquisitions
of American Roller Bearing and iMECH. In total, Timken allocated
$639 million toward these six
strategic acquisitions;
- Repurchased 3.16 million shares, or over 4 percent of
outstanding shares, and increased its quarterly dividend. In 2023,
the company achieved 101 straight years of paying quarterly
dividends and marked its tenth consecutive year of higher annual
dividends. In total, Timken returned $345
million to shareholders during the year through dividends
and share repurchases; and
- Was named one of America's Most Responsible Companies
for the fourth straight year by Newsweek magazine and
Statista Inc., and one of the World's Most Ethical
Companies® for the 12th time by
Ethisphere Institute, reflecting the company's continued commitment
to corporate social responsibility and strong core values.
Fourth-Quarter 2023 Segment Results
Engineered Bearings sales of $724.2 million
decreased 2.4 percent from the same period a year ago. The decrease
was driven by lower volume, partially offset by the benefit of
acquisitions (net), higher pricing and favorable foreign currency
translation.
EBITDA for the quarter was $123.0 million
or 17.0 percent of sales, compared with EBITDA
of $129.6 million or 17.5 percent of sales for
the same period a year ago. The decrease in EBITDA was driven
primarily by the impact of lower volume, higher operating costs and
unfavorable foreign currency, partially offset by favorable
price/mix, lower material & logistics costs, and the benefit of
acquisitions.
Excluding special items, adjusted EBITDA in the quarter
was $132.5 million or 18.3 percent of sales,
compared with $134.2 million or 18.1 percent of sales in
the fourth quarter of last year.
Industrial Motion sales of $367.0 million increased
8.0 percent compared with the same period a year ago. The increase
was driven by the benefit of acquisitions (net), higher pricing and
favorable foreign currency translation, partially offset by lower
volume.
EBITDA for the quarter was $62.6 million
or 17.1 percent of sales, compared with EBITDA
of $60.4 million or 17.8 percent of sales for the
same period a year ago. The increase in EBITDA was driven primarily
by favorable manufacturing costs, the benefit of acquisitions and
favorable price/mix, partially offset by lower volume and higher
acquisition-related charges.
Excluding special items, adjusted EBITDA in the quarter
was $81.6 million or 22.2 percent of sales,
compared with $64.9 million or 19.1 percent of sales
in the fourth quarter of last year.
2024 Outlook
Timken is setting an initial outlook for 2024 revenue to be down
in the range of 2.5% to 4.5% in total, as the benefit of
acquisitions completed during 2023 is expected to be more than
offset by lower anticipated organic revenue based on the current
demand environment. The company is planning for earnings per
diluted share in the range of $4.90
to $5.30 and adjusted earnings per
diluted share in the range of $5.80
to $6.20.
"We are focused on delivering resilient performance in 2024
through softer industrial markets while continuing to advance our
proven strategy," said Kyle. "Our team is actively managing costs
and driving operational excellence initiatives across the
enterprise to mitigate a lower organic revenue outlook. We will
also benefit from recent acquisitions and are accelerating
integration activities to realize synergies."
Kyle continued, "We expect to deliver solid operating margins
and a significant step-up in free cash flow in 2024, which coupled
with our strong balance sheet will continue to fuel our profitable
growth strategy and capital allocation priorities. We remain
confident in our ability to navigate macroeconomic volatility,
profitably grow through industrial cycles, and deliver strong
returns for shareholders."
Conference Call Information
Timken will host a conference call today at 11 a.m. Eastern
Time to review its financial results. Presentation materials will
be available online in advance of the call for interested investors
and securities analysts.
|
Conference
Call:
|
Monday, February 5,
2024
|
|
11:00 a.m. Eastern
Time
|
|
Live Dial-In:
833-470-1428
|
|
Or
404-975-4839
|
|
Access Code:
621328
|
|
(Call in 10 minutes
prior to be included.)
|
|
|
|
Conference Call
Replay:
|
Replay Dial-In
available through
|
|
February 19,
2024:
|
|
866-813-9403 or
929-458-6194
|
|
Replay Passcode:
121438
|
|
|
|
Live
Webcast:
|
http://investors.timken.com
|
About The Timken Company
The Timken Company (NYSE:
TKR; www.timken.com) designs a growing portfolio of
engineered bearings and industrial motion products. With more than
a century of knowledge and innovation, we continuously improve the
reliability and efficiency of global machinery and equipment to
move the world forward. Timken posted $4.8
billion in sales in 2023 and employs more than 19,000 people
globally, operating from 45 countries. Timken has been recognized
among America's Most Responsible Companies and America's
Greatest Workplaces for Diversity by Newsweek, the World's
Most Ethical Companies® by Ethisphere, America's Most
Innovative Companies by Fortune and America's Best Large
Employers by Forbes.
Certain statements in this release (including statements
regarding the company's forecasts, estimates, plans and
expectations) that are not historical in nature are
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. In particular, the
statements related to expectations regarding the company's future
financial performance, including information under the heading
"2024 Outlook," are forward-looking.
The company cautions that actual results may differ
materially from those projected or implied in forward-looking
statements due to a variety of important factors, including: the
finalization of the company's financial statements for the fourth
quarter and full-year of 2023; the company's ability to respond to
the changes in its end markets that could affect demand for the
company's products or services; unanticipated changes in business
relationships with customers or their purchases from the company;
changes in the financial health of the company's customers, which
may have an impact on the company's revenues, earnings and
impairment charges; logistical issues associated with port closures
or congestion, delays or increased costs; the impact of changes to
the company's accounting methods; political risks associated with
government instability; recent world events that have increased the
risks posed by international trade disputes, tariffs, sanctions and
hostilities; strained geopolitical relations between countries in
which we have significant operations; weakness in global or
regional general economic conditions and capital markets (as a
result of financial stress affecting the banking system or
otherwise); the impact of inflation on employee expenses, shipping
costs, raw material costs, energy and fuel prices, and other
production costs; the company's ability to satisfy its obligations
under its debt agreements and renew or refinance borrowings on
favorable terms in a high interest rate environment; fluctuations
in currency valuations; changes in the expected costs associated
with product warranty claims; the ability to achieve satisfactory
operating results in the integration of acquired companies,
including realizing any accretion, synergies, and expected cashflow
generation within expected timeframes or at all; fluctuations in
customer demand; the company's ability to effectively adjust prices
for its products in response to changing dynamics; the impact on
the company's pension obligations and assets due to changes in
interest rates, investment performance and other tactics designed
to reduce risk; the introduction of new disruptive technologies;
unplanned plant shutdowns; the effects of government-imposed
restrictions, commercial requirements, and company goals associated
with climate change and emissions or other sustainability
initiatives; unanticipated litigation, claims, investigations or
assessments; changes in the global regulatory landscape; the
company's ability to maintain positive relations with unions and
works councils; the company's ability to compete for skilled labor
and to attract, retain and develop management, other key employees,
and skilled personnel at all levels of the organization; negative
impacts to the company's operations or financial position as a
result of pandemics, epidemics, or other public health concerns and
associated governmental measures; and the company's ability to
complete and achieve the benefits of announced plans, programs,
initiatives, acquisitions and capital investments. Additional
factors are discussed in the company's filings with the Securities
and Exchange Commission, including the company's Annual Report on
Form 10-K for the year ended Dec. 31,
2022, quarterly reports on Form 10-Q and current reports on
Form 8-K. Except as required by the federal securities laws, the
company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Media Relations:
Scott
Schroeder
234.262.6420
scott.schroeder@timken.com
Investor Relations:
Neil
Frohnapple
234.262.2310
neil.frohnapple@timken.com
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Timken Company
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
|
|
|
|
|
|
(Dollars in millions, except share data)
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
Net sales
|
$
|
1,091.2
|
|
$
|
1,082.0
|
|
|
$
|
4,769.0
|
|
$
|
4,496.7
|
|
|
Cost of products
sold
|
759.9
|
|
774.2
|
|
|
3,259.9
|
|
3,164.7
|
|
|
Selling, general &
administrative expenses
|
189.5
|
|
167.3
|
|
|
740.8
|
|
637.1
|
|
|
Amortization of
intangible assets
|
17.4
|
|
11.7
|
|
|
65.7
|
|
43.9
|
|
|
Impairment and
restructuring charges
|
5.2
|
|
1.8
|
|
|
45.5
|
|
44.1
|
|
|
Operating Income
|
119.2
|
|
127.0
|
|
|
657.1
|
|
606.9
|
|
|
Non-service pension and
other postretirement (expense) income
|
(23.2)
|
|
14.6
|
|
|
(24.0)
|
|
9.3
|
|
|
Other (expense) income,
net
|
(7.0)
|
|
4.1
|
|
|
(1.2)
|
|
5.5
|
|
|
Interest expense,
net
|
(27.5)
|
|
(21.6)
|
|
|
(101.4)
|
|
(70.8)
|
|
|
Income Before Income Taxes
|
61.5
|
|
124.1
|
|
|
530.5
|
|
550.9
|
|
|
Provision for (benefit
from) income taxes
|
(0.4)
|
|
25.0
|
|
|
122.5
|
|
133.9
|
|
|
Net Income
|
61.9
|
|
99.1
|
|
|
408.0
|
|
417.0
|
|
|
Less: Net income
attributable to noncontrolling interest
|
3.2
|
|
1.9
|
|
|
13.9
|
|
9.6
|
|
|
Net Income Attributable to The Timken
Company
|
$
|
58.7
|
|
$
|
97.2
|
|
|
$
|
394.1
|
|
$
|
407.4
|
|
|
|
|
|
|
|
|
Net Income per Common Share Attributable to The
Timken Company Common Shareholders
|
|
|
|
|
|
|
Basic Earnings per
share
|
$
|
0.84
|
|
$
|
1.34
|
|
|
$
|
5.52
|
|
$
|
5.54
|
|
|
Diluted Earnings per
share
|
$
|
0.83
|
|
$
|
1.32
|
|
|
$
|
5.47
|
|
$
|
5.48
|
|
|
|
|
|
|
|
|
Average Shares Outstanding
|
70,263,115
|
|
72,666,994
|
|
|
71,377,656
|
|
73,602,247
|
|
|
Average Shares Outstanding - assuming
dilution
|
70,932,017
|
|
73,578,675
|
|
|
72,081,884
|
|
74,323,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENTS
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
December 31,
|
Twelve Months Ended
December 31,
|
|
(Dollars in
millions)
|
2023
|
2022
|
2023
|
2022
|
|
Engineered Bearings
|
|
|
|
|
|
Net sales
|
$
|
724.2
|
|
$
|
742.2
|
|
$
|
3,257.7
|
|
$
|
3,092.6
|
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
(1)
|
$
|
123.0
|
|
$
|
129.6
|
|
$
|
661.7
|
|
$
|
615.8
|
|
|
EBITDA Margin
(1)
|
17.0
|
%
|
17.5
|
%
|
20.3
|
%
|
19.9
|
%
|
|
Industrial Motion
|
|
|
|
|
|
Net sales
|
$
|
367.0
|
|
$
|
339.8
|
|
$
|
1,511.3
|
|
$
|
1,404.1
|
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
(1)
|
$
|
62.6
|
|
$
|
60.4
|
|
$
|
262.0
|
|
$
|
222.8
|
|
|
EBITDA Margin
(1)
|
17.1
|
%
|
17.8
|
%
|
17.3
|
%
|
15.9
|
%
|
|
Unallocated corporate
expense
|
$
|
(22.0)
|
|
$
|
(14.6)
|
|
$
|
(69.9)
|
|
$
|
(50.0)
|
|
|
Corporate pension and
other postretirement benefit related (expense) income
(2)
|
(22.3)
|
|
12.3
|
|
(20.6)
|
|
(2.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
Net sales
|
$
|
1,091.2
|
|
$
|
1,082.0
|
|
$
|
4,769.0
|
|
$
|
4,496.7
|
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
(1)
|
$
|
141.3
|
|
$
|
187.7
|
|
$
|
833.2
|
|
$
|
785.7
|
|
|
EBITDA
Margin (1)
|
12.9
|
%
|
17.3
|
%
|
17.5
|
%
|
17.5
|
%
|
|
|
|
|
|
|
(1)
EBITDA is a non-GAAP measure defined as
operating income plus other income (expense) and excluding
depreciation and amortization. EBITDA Margin is a non-GAAP measure
defined as EBITDA as a percentage of net sales. EBITDA and EBITDA
Margin are important financial measures used in the management of
the business, including decisions concerning the allocation of
resources and assessment of performance. Management believes that
reporting EBITDA and EBITDA Margin is useful to investors as these
measures are representative of the core operations of the segments
and Company, respectively.
|
|
|
|
|
|
|
(2)
Corporate pension and other postretirement benefit related
(expense) income primarily represents actuarial (losses) and gains
that resulted from the remeasurement of plan assets and obligations
as a result of changes in assumptions or experience. The Company
recognizes actuarial (losses) and gains in connection with the
annual remeasurement in the fourth quarter, or if specific events
trigger a remeasurement. Refer to the Retirement Benefit Plans and
Other Postretirement Benefit Plans footnotes within the Company's
annual reports on Form 10-K and quarterly reports on Form 10-Q for
additional discussion.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
|
(Dollars in
millions)
|
(Unaudited)
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
|
418.9
|
|
|
$
|
331.6
|
|
|
Restricted
cash
|
0.4
|
|
|
9.1
|
|
|
Accounts receivable,
net
|
671.7
|
|
|
699.6
|
|
|
Unbilled
receivables
|
144.5
|
|
|
103.9
|
|
|
Inventories,
net
|
1,229.1
|
|
|
1,191.3
|
|
|
Other current
assets
|
170.3
|
|
|
168.5
|
|
|
Total Current
Assets
|
2,634.9
|
|
|
2,504.0
|
|
|
Property, plant and
equipment, net
|
1,311.9
|
|
|
1,207.4
|
|
|
Operating lease
assets
|
119.7
|
|
|
101.4
|
|
|
Goodwill and other
intangible assets
|
2,401.0
|
|
|
1,863.6
|
|
|
Other assets
|
74.2
|
|
|
96.0
|
|
|
Total Assets
|
$
|
6,541.7
|
|
|
$
|
5,772.4
|
|
|
LIABILITIES
|
|
|
|
|
Accounts
payable
|
$
|
367.2
|
|
|
$
|
403.9
|
|
|
Short-term debt,
including current portion of long-term debt
|
605.6
|
|
|
49.0
|
|
|
Income taxes
|
19.9
|
|
|
51.3
|
|
|
Accrued
expenses
|
478.6
|
|
|
508.2
|
|
|
Total Current
Liabilities
|
1,471.3
|
|
|
1,012.4
|
|
|
Long-term
debt
|
1,790.3
|
|
|
1,914.2
|
|
|
Accrued pension
benefits
|
172.3
|
|
|
160.3
|
|
|
Accrued postretirement
benefits
|
30.2
|
|
|
31.4
|
|
|
Long-term operating
lease liabilities
|
78.7
|
|
|
65.2
|
|
|
Other non-current
liabilities
|
296.5
|
|
|
236.0
|
|
|
Total
Liabilities
|
3,839.3
|
|
|
3,419.5
|
|
|
EQUITY
|
|
|
|
|
The Timken Company
shareholders' equity
|
2,582.4
|
|
|
2,268.3
|
|
|
Noncontrolling
interest
|
120.0
|
|
|
84.6
|
|
|
Total Equity
|
2,702.4
|
|
|
2,352.9
|
|
|
Total Liabilities and
Equity
|
$
|
6,541.7
|
|
|
$
|
5,772.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(Dollars in
millions)
|
2023
|
2022
|
|
2023
|
2022
|
|
Cash Provided by (Used
in)
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net Income
|
$
|
61.9
|
|
$
|
99.1
|
|
|
$
|
408.0
|
|
$
|
417.0
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
52.3
|
|
42.0
|
|
|
201.3
|
|
164.0
|
|
|
Impairment
charges
|
—
|
|
—
|
|
|
33.2
|
|
38.3
|
|
|
Stock-based
compensation expense
|
7.7
|
|
8.1
|
|
|
30.6
|
|
30.4
|
|
|
Pension and other
postretirement expense (income)
|
23.9
|
|
(12.5)
|
|
|
26.5
|
|
(0.6)
|
|
|
Pension and other
postretirement benefit contributions and payments
|
(5.7)
|
|
(3.1)
|
|
|
(29.8)
|
|
(14.6)
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
58.6
|
|
83.5
|
|
|
71.6
|
|
(73.5)
|
|
|
Unbilled
receivables
|
(8.1)
|
|
20.1
|
|
|
(40.4)
|
|
(26.0)
|
|
|
Inventories
|
24.4
|
|
1.5
|
|
|
72.0
|
|
(145.6)
|
|
|
Accounts
payable
|
1.4
|
|
2.4
|
|
|
(57.4)
|
|
(10.2)
|
|
|
Accrued
expenses
|
(33.2)
|
|
5.1
|
|
|
(47.6)
|
|
91.9
|
|
|
Income
taxes
|
(56.8)
|
|
5.4
|
|
|
(120.0)
|
|
12.7
|
|
|
Other,
net
|
1.9
|
|
(10.1)
|
|
|
(2.8)
|
|
(20.0)
|
|
|
Net Cash Provided by
Operating Activities
|
$
|
128.3
|
|
$
|
241.5
|
|
|
$
|
545.2
|
|
$
|
463.8
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
(52.9)
|
|
$
|
(55.9)
|
|
|
$
|
(187.8)
|
|
$
|
(178.4)
|
|
|
Acquisitions, net of
cash received
|
(174.1)
|
|
(301.3)
|
|
|
(638.8)
|
|
(453.7)
|
|
|
Proceeds from
divestitures, net of cash divested
|
9.0
|
|
32.9
|
|
|
13.5
|
|
33.9
|
|
|
Investments in
short-term marketable securities, net
|
11.3
|
|
(13.2)
|
|
|
5.7
|
|
14.6
|
|
|
Other, net
|
(0.6)
|
|
6.2
|
|
|
0.9
|
|
10.3
|
|
|
Net Cash Used in
Investing Activities
|
$
|
(207.3)
|
|
$
|
(331.3)
|
|
|
$
|
(806.5)
|
|
$
|
(573.3)
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Cash dividends paid to
shareholders
|
$
|
(23.2)
|
|
$
|
(22.5)
|
|
|
$
|
(94.0)
|
|
$
|
(91.7)
|
|
|
Purchase of treasury
shares
|
(32.5)
|
|
(18.3)
|
|
|
(250.9)
|
|
(211.6)
|
|
|
Proceeds from exercise
of stock options
|
0.5
|
|
4.3
|
|
|
21.8
|
|
8.5
|
|
|
Payments related to tax
withholding for stock-based compensation
|
(0.6)
|
|
(1.2)
|
|
|
(17.0)
|
|
(10.7)
|
|
|
Net proceeds from
credit facilities
|
186.1
|
|
75.0
|
|
|
223.9
|
|
93.4
|
|
|
Net (payments) proceeds
on long-term debt
|
(14.5)
|
|
84.1
|
|
|
184.0
|
|
419.5
|
|
|
Proceeds on sale of
shares in Timken India Limited
|
—
|
|
—
|
|
|
284.8
|
|
—
|
|
|
Other, net
|
(4.4)
|
|
(3.1)
|
|
|
(5.5)
|
|
(0.6)
|
|
|
Net Cash Provided by
Financing Activities
|
$
|
111.4
|
|
$
|
118.3
|
|
|
$
|
347.1
|
|
$
|
206.8
|
|
|
Effect of exchange rate
changes on cash
|
11.8
|
|
10.6
|
|
|
(7.2)
|
|
(14.5)
|
|
|
Increase in Cash, Cash
Equivalents and Restricted Cash
|
$
|
44.2
|
|
$
|
39.1
|
|
|
$
|
78.6
|
|
$
|
82.8
|
|
|
Cash, Cash Equivalents
and Restricted Cash at Beginning of Period
|
375.1
|
|
301.6
|
|
|
340.7
|
|
257.9
|
|
|
Cash, Cash Equivalents
and Restricted Cash at End of Period
|
$
|
419.3
|
|
$
|
340.7
|
|
|
$
|
419.3
|
|
$
|
340.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Adjusted Net Income to GAAP Net
Income and Adjusted Earnings Per Share to GAAP Earnings Per
Share:
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciliation is provided as additional relevant information about
the Company's performance deemed useful to investors. Management
believes that the non-GAAP measures of adjusted net income and
adjusted diluted earnings per share are important financial
measures used in the management of the business, including
decisions concerning the allocation of resources and assessment of
performance. Management believes that reporting adjusted net income
and adjusted diluted earnings per share is useful to investors as
these measures are representative of the Company's core
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except share
data)
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2023
|
|
EPS
|
2022
|
|
EPS
|
|
2023
|
|
EPS
|
|
2022
|
|
EPS
|
|
Net Income Attributable
to The Timken Company
|
$
|
58.7
|
|
|
$
|
0.83
|
|
$
|
97.2
|
|
|
$
|
1.32
|
|
|
$
|
394.1
|
|
|
$
|
5.47
|
|
|
$
|
407.4
|
|
|
$
|
5.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition intangible
amortization
|
$
|
17.4
|
|
|
|
$
|
11.7
|
|
|
|
|
$
|
65.7
|
|
|
|
|
$
|
43.9
|
|
|
|
|
Impairment, restructuring and reorganization charges
(2)
|
7.5
|
|
|
|
3.8
|
|
|
|
|
51.6
|
|
|
|
|
39.5
|
|
|
|
|
Corporate
pension and other postretirement benefit related expense (income)
(3)
|
22.3
|
|
|
|
(12.3)
|
|
|
|
|
20.6
|
|
|
|
|
2.9
|
|
|
|
|
Russia-related charges (4)
|
4.7
|
|
|
|
0.3
|
|
|
|
|
8.5
|
|
|
|
|
15.6
|
|
|
|
|
Acquisition-related charges (5)
|
19.0
|
|
|
|
9.1
|
|
|
|
|
31.8
|
|
|
|
|
14.8
|
|
|
|
|
Loss
(gain) on divestitures and sale of certain assets
(6)
|
0.7
|
|
|
|
(2.9)
|
|
|
|
|
(5.2)
|
|
|
|
|
(2.9)
|
|
|
|
|
Tax indemnification and
related items
|
—
|
|
|
|
0.3
|
|
|
|
|
—
|
|
|
|
|
0.3
|
|
|
|
|
Noncontrolling interest
of above adjustments
|
(0.1)
|
|
|
|
0.4
|
|
|
|
|
(2.1)
|
|
|
|
|
(5.3)
|
|
|
|
|
Provision
for income taxes (7)
|
(32.9)
|
|
|
|
(9.4)
|
|
|
|
|
(56.9)
|
|
|
|
|
(35.9)
|
|
|
|
|
Total
Adjustments:
|
38.6
|
|
|
0.54
|
|
1.0
|
|
|
0.02
|
|
|
114.0
|
|
|
1.58
|
|
|
72.9
|
|
|
0.98
|
|
|
Adjusted Net Income
Attributable to The Timken Company
|
$
|
97.3
|
|
|
$
|
1.37
|
|
$
|
98.2
|
|
|
$
|
1.34
|
|
|
$
|
508.1
|
|
|
$
|
7.05
|
|
|
$
|
480.3
|
|
|
$
|
6.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments are pre-tax, with the net tax provision listed
separately.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Impairment, restructuring and reorganization charges (including
items recorded in cost of products sold) relate to: (i) plant
closures; (ii) the rationalization of certain plants; (iii)
severance related to cost reduction initiatives; (iv) impairment of
assets; and (v) related depreciation and amortization. Impairment,
restructuring and reorganization charges for 2023 included $28.3
million related to the impairment of goodwill. Impairment,
restructuring and reorganization charges for 2022 included $29.3
million related to the sale of Timken Aerospace Drives Systems, LLC
("ADS"). The Company re-assesses its operating footprint and cost
structure periodically, and makes adjustments as needed that result
in restructuring charges. However, management believes these
actions are not representative of the Company's core
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Corporate pension and other postretirement benefit
related expense (income) represents actuarial losses and (gains)
that resulted from the remeasurement of plan assets and obligations
as a result of changes in assumptions or experience. The Company
recognizes actuarial losses and (gains) in connection with the
annual remeasurement in the fourth quarter, or if specific events
trigger a remeasurement. Refer to the Retirement Benefit Plans and
Other Postretirement Benefit Plans footnotes within the Company's
annual reports on Form 10-K and quarterly reports on Form 10-Q for
additional discussion.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
Russia-related charges include impairments or allowances recorded
against certain property, plant and equipment, inventory and trade
receivables and write-down of a 51%-owned joint venture ("Russian
JV") to reflect the current impact of Russia's invasion of Ukraine
(and associated sanctions) on the Company's operations. In addition
to impairments and allowances recorded, the Company recorded a loss
on the divestiture of its Timken-Rus Service Company ooo ("Timken
Russia") business during the third quarter of 2022. Refer to Russia
Operations in Management Discussion and Analysis within the
Company's annual report on Form 10-K for additional
information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Acquisition-related charges represent deal-related
expenses associated with completed transactions and any resulting
inventory step-up impact.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
Represents the net loss (gain) resulting from divestitures and sale
of certain assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
Provision for income taxes includes the
net tax impact on pre-tax adjustments (listed above), the impact of
discrete tax items recorded during the respective periods as well
as other adjustments to reflect the use of one overall effective
tax rate on adjusted pre-tax income in interim periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to GAAP Net Income, EBITDA
Margin to Net Income as a Percentage of Sales, and EBITDA Margin,
After Adjustments, to Net Income as a Percentage of Sales, and
EBITDA, After Adjustments, to Net Income:
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
The following
reconciliation is provided as additional relevant information about
the Company's performance deemed useful to investors.
Management believes consolidated earnings before interest,
taxes, depreciation and amortization (EBITDA) is a non-GAAP measure
that is useful to investors as it is representative of the
Company's performance and that it is appropriate to compare GAAP
net income to consolidated EBITDA. Management also believes that
adjusted EBITDA, adjusted EBITDA margin and EBITDA margin are
useful to investors as they are representative of the Company's
core operations and are used in the management of the business,
including decisions concerning the allocation of resources and
assessment of performance.
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2023
|
Percentage to
Net Sales
|
2022
|
Percentage to
Net Sales
|
|
2023
|
Percentage to
Net Sales
|
2022
|
Percentage to
Net Sales
|
|
Net Income
|
$
|
61.9
|
|
5.7
|
%
|
$
|
99.1
|
|
9.2
|
%
|
|
$
|
408.0
|
|
8.6
|
%
|
$
|
417.0
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (benefit
from) income taxes
|
(0.4)
|
|
|
25.0
|
|
|
|
122.5
|
|
|
133.9
|
|
|
|
Interest
expense
|
30.8
|
|
|
22.7
|
|
|
|
110.7
|
|
|
74.6
|
|
|
|
Interest
income
|
(3.3)
|
|
|
(1.1)
|
|
|
|
(9.3)
|
|
|
(3.8)
|
|
|
|
Depreciation and
amortization
|
52.3
|
|
|
42.0
|
|
|
|
201.3
|
|
|
164.0
|
|
|
|
Consolidated
EBITDA
|
$
|
141.3
|
|
12.9
|
%
|
$
|
187.7
|
|
17.3
|
%
|
|
$
|
833.2
|
|
17.5
|
%
|
$
|
785.7
|
|
17.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Impairment, restructuring and reorganization charges
(1)
|
$
|
7.4
|
|
|
$
|
3.8
|
|
|
|
$
|
50.8
|
|
|
$
|
39.5
|
|
|
|
Corporate
pension and other postretirement benefit related expense
(income) (2)
|
22.3
|
|
|
(12.3)
|
|
|
|
20.6
|
|
|
2.9
|
|
|
|
Russia-related charges (3)
|
4.7
|
|
|
0.3
|
|
|
|
8.5
|
|
|
15.6
|
|
|
|
Acquisition-related charges (4)
|
19.0
|
|
|
9.1
|
|
|
|
31.8
|
|
|
14.8
|
|
|
|
Loss
(gain) on divestitures and sale of certain assets
(5)
|
0.7
|
|
|
(2.9)
|
|
|
|
(5.2)
|
|
|
(2.9)
|
|
|
|
Tax
indemnification and related items
|
—
|
|
|
0.3
|
|
|
|
—
|
|
|
0.3
|
|
|
|
Total Adjustments
|
54.1
|
|
5.0
|
%
|
(1.7)
|
|
(0.1)
|
%
|
|
106.5
|
|
2.2
|
%
|
70.2
|
|
1.5
|
%
|
|
Adjusted
EBITDA
|
$
|
195.4
|
|
17.9
|
%
|
$
|
186.0
|
|
17.2
|
%
|
|
$
|
939.7
|
|
19.7
|
%
|
$
|
855.9
|
|
19.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Impairment, restructuring and
reorganization charges (including items recorded in cost of
products sold) relate to: (i) plant closures; (ii) the
rationalization of certain plants; (iii) severance related to cost
reduction initiatives; and (iv) impairment of assets. Impairment,
restructuring and reorganization charges for 2023 included $28.3
million related to the impairment of goodwill. Impairment,
restructuring and reorganization charges for 2022 included $29.3
million related to the sale of ADS. The Company re-assesses its
operating footprint and cost structure periodically, and makes
adjustments as needed that result in restructuring
charges. However, management believes these actions are not
representative of the Company's core operations.
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Corporate pension and other postretirement benefit related expense
(income) represents actuarial losses and (gains) that resulted from
the remeasurement of plan assets and obligations as a result of
changes in assumptions or experience. The Company recognizes
actuarial losses and (gains) in connection with the annual
remeasurement in the fourth quarter, or if specific events trigger
a remeasurement. Refer to the Retirement Benefit Plans and Other
Postretirement Benefit Plans footnotes within the Company's annual
reports on Form 10-K and quarterly reports on Form 10-Q for
additional discussion.
|
|
|
|
|
|
|
|
|
|
|
|
(3)
Russia-related charges include impairments or allowances recorded
against certain property, plant and equipment, inventory and trade
receivables and write-down of Russian JV to reflect the current
impact of Russia's invasion of Ukraine (and associated sanctions)
on the Company's operations. In addition to impairments and
allowances recorded, the Company recorded a loss on the divestiture
of its Timken Russia business during the third quarter of 2022.
Refer to Russia Operations in Management Discussion and Analysis
within the Company's annual report on Form 10-K for additional
information.
|
|
|
|
|
|
|
|
|
|
|
|
(4)
Acquisition-related charges represent
deal-related expenses associated with completed transactions and
any resulting inventory step-up impact.
|
|
|
|
|
|
|
|
|
|
|
|
(5)
Represents the net loss (gain) resulting
from divestitures and sale of certain assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of segment EBITDA, after adjustments,
to segment EBITDA, and segment EBITDA, after adjustments, as a
percentage of sales to segment EBITDA, as a percentage of
sales:
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciliation is provided as additional relevant information about
the Company's Engineered Bearings and Industrial Motion segment
performance deemed useful to investors. Management believes that
non-GAAP measures of adjusted EBITDA and adjusted EBITDA margin for
the segments are useful to investors as they are representative of
each segment's core operations and are used in the management of
the business, including decisions concerning the allocation of
resources and assessment of performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Bearings
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(Dollars in millions)
|
2023
|
Percentage to Net Sales
|
|
2022
|
Percentage to Net
Sales
|
|
2023
|
Percentage to Net Sales
|
|
2022
|
Percentage to Net
Sales
|
|
Earnings before
interest, taxes, depreciation and
amortization (EBITDA)
|
$
|
123.0
|
|
17.0
|
%
|
|
$
|
129.6
|
|
17.5
|
%
|
|
$
|
661.7
|
|
20.3
|
%
|
|
$
|
615.8
|
|
19.9
|
%
|
|
Impairment, restructuring and reorganization charges
(1)
|
3.7
|
|
|
|
1.7
|
|
|
|
14.3
|
|
|
|
4.4
|
|
|
|
Russia-related charges (2)
|
4.7
|
|
|
|
0.3
|
|
|
|
8.5
|
|
|
|
15.6
|
|
|
|
Acquisition-related charges (3)
|
0.4
|
|
|
|
6.2
|
|
|
|
3.6
|
|
|
|
6.2
|
|
|
|
Loss
(gain) on divestitures and sale of certain assets
(4)
|
0.7
|
|
|
|
(3.6)
|
|
|
|
(5.5)
|
|
|
|
(3.5)
|
|
|
|
Adjusted
EBITDA
|
$
|
132.5
|
|
18.3
|
%
|
|
$
|
134.2
|
|
18.1
|
%
|
|
$
|
682.6
|
|
21.0
|
%
|
|
$
|
638.5
|
|
20.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Motion
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(Dollars in millions)
|
2023
|
Percentage to Net Sales
|
|
2022
|
Percentage to Net
Sales
|
|
2023
|
Percentage to Net Sales
|
|
2022
|
Percentage to Net
Sales
|
|
Earnings before
interest, taxes, depreciation and
amortization (EBITDA)
|
$
|
62.6
|
|
17.1
|
%
|
|
$
|
60.4
|
|
17.8
|
%
|
|
$
|
262.0
|
|
17.3
|
%
|
|
$
|
222.8
|
|
15.9
|
%
|
|
Impairment, restructuring and reorganization charges
(1)
|
3.8
|
|
|
|
2.0
|
|
|
|
36.5
|
|
|
|
35.1
|
|
|
|
Acquisition-related charges (3)
|
15.2
|
|
|
|
1.4
|
|
|
|
21.0
|
|
|
|
4.9
|
|
|
|
Loss on
divestitures and sale of certain assets (4)
|
—
|
|
|
|
0.8
|
|
|
|
0.3
|
|
|
|
0.6
|
|
|
|
Tax
indemnification and related items
|
—
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
0.3
|
|
|
|
Adjusted
EBITDA
|
$
|
81.6
|
|
22.2
|
%
|
|
$
|
64.9
|
|
19.1
|
%
|
|
$
|
319.8
|
|
21.2
|
%
|
|
$
|
263.7
|
|
18.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Impairment, restructuring and reorganization charges
(including items recorded in cost of products sold) relate to: (i)
plant closures; (ii) the rationalization of certain plants; (iii)
severance related to cost reduction initiatives; and (iv)
impairment of assets. Impairment, restructuring and reorganization
charges for 2023 included $28.3 million related to the impairment
of goodwill. Impairment, restructuring and reorganization charges
for 2022 included $29.3 million related to the sale of ADS. The
Company re-assesses its operating footprint and cost structure
periodically, and makes adjustments as needed that result in
restructuring charges. However, management believes these
actions are not representative of the Company's core
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Russia-related charges include
impairments or allowances recorded against certain property, plant
and equipment, inventory and trade receivables and write-down of
Russia JV to reflect the current impact of Russia's invasion
of Ukraine (and associated sanctions) on the Company's operations.
In addition to impairments and allowances recorded, the Company
recorded a loss on the divestiture of its Timken Russia business
during the third quarter of 2022. Refer to Russia Operations in
Management Discussion and Analysis within the Company's annual
report on Form 10-K for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) The acquisition-related charges
represent the inventory step-up impact of the completed
acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Represents the net loss (gain) resulting from
divestitures and sale of certain assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Debt to Net Debt, the Ratio
of Net Debt to Capital, and the Ratio of Net Debt to Adjusted
EBITDA:
|
|
(Unaudited)
|
|
|
|
|
|
These reconciliations
are provided as additional relevant information about the Company's
financial position deemed useful to investors. Capital, used for
the ratio of net debt to capital, is a non-GAAP measure defined as
total debt less cash and cash equivalents plus total shareholders'
equity. Management believes Net Debt, the Ratio of Net Debt to
Capital, Adjusted EBITDA (see prior page), and the Ratio of Net
Debt to Adjusted EBITDA are important measures of the Company's
financial position, due to the amount of cash and cash equivalents
on hand. The Company presents net debt to adjusted EBITDA because
it believes it is more representative of the Company's financial
position as it is reflective of the ability to cover its net debt
obligations with results from its core operations.
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
December 31,
2023
|
December 31,
2022
|
|
Short-term debt,
including current portion of long-term debt
|
|
|
$
|
605.6
|
|
$
|
49.0
|
|
|
Long-term
debt
|
|
|
1,790.3
|
|
1,914.2
|
|
|
Total
Debt
|
|
|
$
|
2,395.9
|
|
$
|
1,963.2
|
|
|
Less: Cash and cash
equivalents
|
|
|
(418.9)
|
|
(331.6)
|
|
|
Net Debt
|
|
|
$
|
1,977.0
|
|
$
|
1,631.6
|
|
|
|
|
|
|
|
Total Equity
|
|
|
$
|
2,702.4
|
|
$
|
2,352.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Net Debt to
Capital
|
|
|
42.2
|
%
|
40.9
|
%
|
|
|
|
|
|
|
Adjusted EBITDA for the
Twelve Months Ended
|
|
|
$
|
939.7
|
|
$
|
855.9
|
|
|
|
|
|
|
|
Ratio of Net Debt to
Adjusted EBITDA
|
|
|
2.1
|
|
1.9
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow to GAAP Net Cash
Provided by Operating Activities:
|
|
(Unaudited)
|
|
|
|
|
|
Management believes
that free cash flow is a non-GAAP measure that is useful to
investors because it is a meaningful indicator of cash generated
from operating activities available for the execution of its
business strategy.
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
Three Months Ended
December 31,
|
Twelve Months Ended
December 31,
|
|
2023
|
2022
|
2023
|
2022
|
|
Net cash provided by
operating activities
|
$
|
128.3
|
|
$
|
241.5
|
|
$
|
545.2
|
|
$
|
463.8
|
|
|
Less: capital
expenditures
|
(52.9)
|
|
(55.9)
|
|
(187.8)
|
|
(178.4)
|
|
|
Free cash
flow
|
$
|
75.4
|
|
$
|
185.6
|
|
$
|
357.4
|
|
$
|
285.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Sales to Organic
Sales
|
|
(Unaudited)
|
|
|
|
|
|
|
|
The following
reconciliation is provided as additional relevant information about
the Company's performance deemed useful to investors. Management
believes that net sales, excluding the impact of acquisitions,
divestitures and foreign currency exchange rate changes, allow
investors and the Company to meaningfully evaluate the percentage
change in net sales on a comparable basis from period to
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2023
|
|
Twelve Months
Ended
December 31, 2022
|
|
$ Change
|
% Change
|
|
Net sales
|
$
|
4,769.0
|
|
|
$
|
4,496.7
|
|
|
$
|
272.3
|
|
6.1
|
%
|
|
Less: Acquisitions and
divestitures
|
245.6
|
|
|
—
|
|
|
245.6
|
|
NM
|
|
Currency
|
(23.0)
|
|
|
—
|
|
|
(23.0)
|
|
NM
|
|
Net sales, excluding
the impact of acquisitions, divestitures and currency
|
$
|
4,546.4
|
|
|
$
|
4,496.7
|
|
|
$
|
49.7
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Earnings per Share to GAAP
Earnings per Share for Full Year 2024
Outlook:
|
|
(Unaudited)
|
|
The following
reconciliation is provided as additional relevant information about
the Company's outlook deemed useful to investors. Forecasted
full year adjusted diluted earnings per share is an important
financial measure that management believes is useful to investors
as it is representative of the Company's expectation for the
performance of its core business operations.
|
|
|
|
|
|
Low End Earnings
Per Share
|
|
High End Earnings
Per Share
|
|
Forecasted full year
GAAP diluted earnings per share
|
$
|
4.90
|
|
|
$
|
5.30
|
|
|
|
|
|
|
Forecasted
Adjustments:
|
|
|
|
|
Impairment,
restructuring and other special items, net
(1)
|
0.15
|
|
|
0.15
|
|
|
Acquisition-related intangible amortization expense, net
|
0.75
|
|
|
0.75
|
|
|
Forecasted full year
adjusted diluted earnings per share
|
$
|
5.80
|
|
|
$
|
6.20
|
|
|
|
|
|
|
(1)
Impairment, restructuring and other special items, net do not
include the impact of any potential future mark-to-market pension
and other postretirement remeasurement adjustments, because the
amounts will not be known until incurred.
|
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SOURCE The Timken Company