Canton, Ohio-based The Timken Company reported Thursday third-quarter 2013 sales of $1.1 billion, a 7 percent decrease compared with the same period a year ago, primarily due to weaker demand from the company's broad end markets, partially offset by acquisitions.
Timken generated third-quarter net income of $52.2 million, or $0.54 per diluted share. Compared with net income of $80.9 million or $0.83 per diluted share during the same period a year ago, third-quarter earnings primarily reflect lower volume and manufacturing utilization as well as unfavorable sales mix. The decrease was partially offset by lower raw material and plant closure costs as well as favorable pricing.
"On a macro basis, economic growth across the world has been much slower than we and our customers envisioned, and our third-quarter results were below our expectations," said James W. Griffith, Timken president and chief executive officer. "As a result, we've implemented and are continuing to take additional actions to allow us to enhance margins despite the lower demand levels. These include leveraging our strategic investments as well as implementing tactics to rationalize capacity levels and taking further actions to reduce costs, with a focus on SG&A."
Sales for steel, including inter-segment sales, were $350.5 million in the third quarter, a decrease of 7 percent from $377 million for the same period last year. The results reflect reduced shipments to industrial sectors, partially offset by improved sales to the mobile on-highway sector.Raw-material surcharges decreased $4 million from the third quarter last year. For the first nine months of 2013, steel sales were $1.1 billion, a 26 percent decrease compared with the same period a year ago. EBIT for the first nine months of 2013 was $107.3 million, or 10.2 percent of sales, down 53 percent from $226.6 million, or 16 percent of sales, in the prior-year period.
