Core Viewpoint - The Timken Company reported a decline in earnings and revenues for the fourth quarter of 2024, primarily due to lower demand in Europe and unfavorable currency translation, despite beating consensus estimates for earnings and revenues [1][2][11]. Financial Performance - Adjusted EPS for Q4 2024 was $1.16, exceeding the Zacks Consensus Estimate of $0.97, but reflecting a 15% year-over-year decline [1] - Reported EPS was $1.01 compared to $0.83 in the prior-year quarter [2] - Total revenues for Q4 were $1.07 billion, down 1.6% year-over-year, but above the Zacks Consensus Estimate of $1.06 billion [2][11] - Organic sales decreased by 2.6% [2] Cost and Margin Analysis - Cost of sales decreased by 1.5% to $749 million, while gross profit fell by 2% year-over-year to $325 million [3] - Gross margin was 30.3%, slightly down from 30.4% in the previous year [3] - Adjusted EBITDA declined by 9% year-over-year to $178 million, with an adjusted EBITDA margin of 16.6%, a contraction of 130 basis points from the prior year [4] Segment Performance - Engineered Bearings segment revenues fell by 2% year-over-year to $708 million, impacted by lower demand in Europe and unfavorable currency translation [5] - Adjusted EBITDA for the Engineered Bearings segment was $122 million, down 8% from the previous year [6] - Industrial Motion segment revenues declined by 0.3% year-over-year to $366 million, missing projections [7] - Adjusted EBITDA for the Industrial Motion segment was $71 million, down from $82 million in the previous quarter [8] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of 2024 were $373 million, down from $419 million at the end of 2023 [9] - Cash flow from operating activities was $476 million, compared to $545 million in the prior year [9] - Long-term debt increased to $2.19 billion from $1.79 billion year-over-year [9] Dividend and Shareholder Returns - The company increased its quarterly dividend by 3% to $0.34 per share, marking the eleventh consecutive year of higher annual dividends [10] - Total returns to shareholders through dividends and share repurchases amounted to $136.6 million during the year [10] 2024 Performance Overview - For 2024, adjusted earnings were $5.79 per share, surpassing the Zacks Consensus Estimate of $5.61, but reflecting an 18% decline from the prior year [11] - Total revenues fell by 4% year-over-year to $4.57 billion, although this figure beat the Zacks Consensus Estimate of $4.56 billion [11][12] 2025 Guidance - For 2025, the company expects total revenues to decline by 1-4% from 2024 levels, with organic sales anticipated to decrease by 1% at the midpoint [13] - Adjusted EPS guidance for 2025 is between $5.30 and $5.80, indicating a year-over-year decline of 4% [14] - Cost-reduction actions are expected to yield savings of approximately $75 million in 2025 [14] Stock Performance - Over the past year, TKR shares have gained 2.1%, contrasting with a 31% decline in the industry [15]

Financial Data and Key Metrics Changes - Overall revenue decreased by 1.6% year-over-year, with organic revenue down 2.5% primarily due to weak demand in Europe [9][34] - Adjusted EBITDA margins were reported at 16.6%, down 130 basis points from the previous year and 30 basis points from the third quarter [10][39] - Adjusted earnings per share (EPS) was $1.16, reflecting a 15% decline from last year [10][44] - Free cash flow for the fourth quarter was $125 million, totaling approximately $300 million for the full year [11][53] Business Line Data and Key Metrics Changes - Engineered Bearings sales were $708 million, down 2.3% year-over-year, with organic sales down 1.1% due to lower demand in Europe [46] - Industrial Motion sales were $366 million, a slight decline from last year, with organic sales down 5.6% [49] - Adjusted EBITDA for Engineered Bearings was $121 million (17.2% of sales), while Industrial Motion's adjusted EBITDA was $71 million (19.3% of sales) [48][51] Market Data and Key Metrics Changes - The Americas region showed resilience with a 2% increase in revenue, while Asia Pacific was down 3%, primarily due to a decline in China [37] - EMEA experienced an 11% decline due to an industrial slowdown in Western Europe [38] - The overall market conditions in Europe are expected to remain challenging, impacting the company's outlook for 2025 [12][55] Company Strategy and Development Direction - The company is focusing on becoming more customer-centric rather than product-centric, aiming to tailor products to local market needs [22][118] - Plans include prioritizing R&D and resources for higher growth and profitability segments, while reducing vertical integration across the portfolio [23][111] - The company is also looking at accretive M&A opportunities to enhance its presence in growing markets [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for 2025 due to ongoing economic uncertainty and weak demand in Europe, expecting organic sales to be slightly lower [12][55] - The company anticipates adjusted EPS to be modestly down from 2024, primarily due to unfavorable currency impacts [14][58] - Management highlighted the importance of cost savings initiatives, expecting to deliver around $75 million in incremental savings in 2025 [14][96] Other Important Information - The company plans to continue its disciplined approach to capital allocation, focusing on investments with the highest returns [16][60] - A new plant expansion in Baruch, India, is expected to support growth in the industrial bearings business [24] - The planned retirement of Chris Copeland, a key leader in the industrial motions business, was acknowledged, with a search for his successor underway [30][31] Q&A Session Summary Question: Outlook for 2025 and market conditions - Management maintains a cautious outlook for 2025, primarily due to weak demand in Europe, despite some positive indicators like the ISM [75][78] Question: Impact of tariffs on COGS - Tariffs from Canada and Mexico could present a mid-single-digit million dollar headwind monthly, but the company expects to mitigate these impacts over time [82] Question: Book to bill ratio and backlog size - The order book is down year-over-year, but remains supportive of the full-year guidance, with expected organic sales decline similar to the fourth quarter [88][90] Question: Actions for cost savings beyond the $75 million - Management indicated that further actions will be detailed later in the year, focusing on portfolio adjustments and cost-saving measures [95][96] Question: Cross-selling opportunities - The company sees significant potential in cross-selling, particularly with recent acquisitions, but specific numbers will be provided later [157] Question: Renewable energy projects in Asia - Renewable energy sales are expected to remain flat in 2025, with the market stabilizing at lower levels [159]

4Q 2024 Earnings Investor Presentation February 5, 2025 The Timken Company Agenda | Introduction | Neil Frohnapple Vice President of Investor Relations | | --- | --- | | Overview and Business Update | Tarak Mehta President and Chief Executive Officer | | Financial Review | Phil Fracassa | | | Executive Vice President and Chief Financial Officer | | Q&A | Question and Answer Session | 2 Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information 4Q 2024 Performance Highlights 5 Sales of $1.07 b ...

Timken (TKR) reported $1.07 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 1.6%. EPS of $1.16 for the same period compares to $1.37 a year ago.The reported revenue represents a surprise of +1.04% over the Zacks Consensus Estimate of $1.06 billion. With the consensus EPS estimate being $0.98, the EPS surprise was +18.37%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

Timken (TKR) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $0.98 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.37%. A quarter ago, it was expected that this maker of bearings and power transmissions would post earnings of $1.37 per share when it actually produced earnings of $1.23, delivering a surprise of -10.22%.Over the last fo ...

NORTH CANTON, Ohio, Feb. 5, 2025 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, today announced that Christopher A. Coughlin, executive vice president and president, Industrial Motion, will retire at the end of the year after 41 years with the company. Chris Coughlin "Chris has been an invaluable part of Timken's leadership team, demonstrating exemplary stewardship and a deep commitment to the company's mission for ...

Timken Reports Fourth-Quarter and Full-Year 2024 Results | (USD in millions) | 4Q-24 | 4Q-23 | % Change | FY-2024 | FY-2023 | % Change | | --- | --- | --- | --- | --- | --- | --- | | Net Sales | $1,073.6 | $1,091.2 | (1.6)% | $4,573.0 | $4,769.0 | (4.1)% | | Net Income Margin | 6.6% | 5.4% | 120 bps | 7.7% | 8.3% | (60 bps) | | Adjusted EBITDA Margin | 16.6% | 17.9% | (130 bps) | 18.5% | 19.7% | (120 bps) | | Diluted EPS | $1.01 | $0.83 | 21.7% | $4.99 | $5.47 | (8.8)% | | Adjusted EPS | $1.16 | $1.37 | (15 ...

Sales of $1.07 billion in the fourth quarter, down 1.6 percent from last year Fourth-quarter diluted EPS of $1.01; adjusted EPS of $1.16 Full-year 2024 diluted EPS of $4.99; adjusted EPS of $5.79 Cash from operations of $476 million; free cash flow of $306 million for the full year Company provides initial estimate for 2025 EPS of $4.30-$4.80, with adjusted EPS of $5.30-$5.80 (USD in millions) 4Q-24 4Q-23 % Change  FY-2024 FY-2023 % Change Net Sales $1,073.6 $1,091.2 (1.6 %) $4,573.0 $4,7 ...

Timken (TKR) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 5, 2025, might help the stock move higher if these key numbers are better than expect ...

I always enjoy digging into companies that have an interesting role to play in my local economy. Given that I live in northeast Ohio, there aren't very many publicly traded firms that fit into this bucket. But one of them happensCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow ...