Rexnord Corporation (RXN) Q3 Fiscal Year 2020 Financial ResultsRexnord
This presentation and discussion contains certain forward-looking statements that are subject to the Safe Harbor and Cautionary language contained in the press release we issued on January 28, 2020, as well as other factors that could cause actual results to differ materially from those discussed and that are disclosed in our filings with the Securities and Exchange Commission.
Some comparisons will refer to certain non-GAAP measures. Our earnings release and SEC filings contain additional information about these non-GAAP measures, why we use them and why we believe they are helpful to investors, and contain reconciliations to GAAP data.
Rexnord Corporation (RXN) Q3 Fiscal Year 2020 Financial ResultsRexnord
This presentation and discussion contains certain forward-looking statements that are subject to the Safe Harbor and Cautionary language contained in the press release we issued on January 28, 2020, as well as other factors that could cause actual results to differ materially from those discussed and that are disclosed in our filings with the Securities and Exchange Commission.
Some comparisons will refer to certain non-GAAP measures. Our earnings release and SEC filings contain additional information about these non-GAAP measures, why we use them and why we believe they are helpful to investors, and contain reconciliations to GAAP data.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
1. NEWS RELEASE
Timken Reports Record Second-Quarter
Results
• Sales rise as global industrial demand remains strong
• Earnings increase on execution of strategic initiatives,
counteracting weaker automotive demand
• Company expects record full-year earnings
CANTON, Ohio – July 30, 2008 – The Timken Company (NYSE: TKR) today
reported record sales of $1.54 billion in the second quarter of 2008, an increase of
14 percent over the same period a year ago. Strong sales in global industrial
markets more than offset the impact of weaker North American automotive demand.
During the quarter, the company benefited from its capacity-expansion initiatives, as
well as the favorable impact of pricing, surcharges and currency.
Second-quarter income from continuing operations was $88.9 million, or $0.92
per diluted share, compared to $55.6 million, or $0.58 per diluted share, in the
second quarter a year ago. Excluding special items, income from continuing
operations increased 33 percent to $92.4 million, or $0.96 per diluted share, for the
The Timken Company
Media Contact: Jeff Dafler
second quarter of 2008, compared to $69.7 million, or $0.73 per diluted share, in
Manager – Global Media &
Government Relations
Mail Code: GNW-37 the second quarter of 2007. Record second-quarter earnings benefited from
1835 Dueber Avenue, S.W.
Canton, OH 44706 U.S.A.
Telephone: (330) 471-3514 favorable pricing, surcharges, volume and currency, which were partially offset by
Facsimile: (330) 471-7032
jeff.dafler@timken.com
higher material costs and related LIFO charges. Second-quarter special items, net
Investor Contact: Steve Tschiegg
Manager – Investor Relations of tax, included manufacturing rationalization, impairment and restructuring charges
Mail Code: GNE-26
1835 Dueber Avenue, S.W.
totaling $3.5 million, compared to $14.1 million of similar charges in the second
Canton, OH 44706 U.S.A.
Telephone: (330) 471-7446
Facsimile: (330) 471-2797
quarter of 2007.
steve.tschiegg@timken.com
For Additional Information:
www.timken.com/media
www.timken.com/investors
2. -2- “The company has pursued a deliberate strategy to transform Timken’s portfolio
where we see a significant opportunity to drive profitable growth,” said James W.
Griffith, Timken’s president and chief executive officer. “This strategy is allowing us
to create higher levels of customer and shareholder value over time and contributed
to record sales and earnings during the second quarter despite continued weakness
in automotive markets. We are on pace to achieve record performance for the year
as our strategic initiatives to add capacity and strengthen execution continue to take
hold.”
During the quarter, the company:
• Completed another significant phase of Project O.N.E., Timken’s
business process improvement and global systems initiative, now
covering most of the company’s U.S. and European Bearing and Power
Transmission operations; and
• Began production at its new aerospace and precision products facility in
Chengdu, China, and started shipping products from its new industrial
bearing manufacturing plant in Chennai, India.
Timken continued to strengthen its balance sheet during the quarter. Total debt
at June 30, 2008, was $861.4 million, or 28.3 percent of capital. Net debt at June
30, 2008, was $786.6 million, or 26.5 percent of capital, compared to $805.1 million,
or 28.0 percent of capital, at March 31, 2008. The company expects to generate
strong free cash flow for the remainder of the year and to end 2008 with lower net
debt and leverage than last year, providing additional financial capacity to pursue
strategic investments.
For the first half of 2008, sales were $2.97 billion, an increase of 13 percent
from the same period in 2007. Income from continuing operations per diluted share
for the first six months of 2008 was $1.80, compared to $1.36 last year. Special
items, net of tax, in the first half of 2008 totaled $2.1 million of income compared to
$2.3 million of expense in the prior-year period. These special items included a
gain on a real estate divestment associated with a prior plant closure, partially offset
The Timken Company
3. -3- by charges related to restructuring, rationalization and impairment. Excluding
special items, income from continuing operations per diluted share in the first half of
2008 increased 28 percent to $1.78, versus $1.39 in the first half of 2007. During
the first six months of 2008, the company benefited from strong industrial market
demand, pricing, surcharges, mix and currency, which were partially offset by higher
raw-material costs and related LIFO charges and the impact of lower automotive
demand.
Bearings and Power Transmission Group Results
The Bearings and Power Transmission Group had second-quarter sales of
$1.06 billion, up 9 percent from $0.97 billion for the same period last year, resulting
primarily from organic growth in the Process Industries and Aerospace and Defense
segments, which was partially offset by weaker demand in the Mobile Industries
segment. The group also benefited from the favorable impact of the Purdy
acquisition and currency.
Bearings and Power Transmission Group earnings before interest and taxes
(EBIT) for the second quarter were $87.7 million, up 31 percent from $67.2 million in
the second quarter of 2007, benefiting from strong global industrial demand, pricing
and currency, which were partially offset by higher material costs and related LIFO
charges, as well as weakness in North American automotive markets. The group
also experienced higher manufacturing costs associated with serving strong
industrial demand, compared to the year-ago period.
For the first half of 2008, Bearings and Power Transmission Group sales were
$2.11 billion, up 11 percent from the same period a year ago. First-half 2008 EBIT
was $181.4 million, or 8.6 percent of sales, compared to EBIT of $121.6 million, or
6.4 percent of sales, in the first half of 2007.
Mobile Industries Segment Results
In the second quarter, Mobile Industries sales were $628.2 million, a decrease
of 1 percent from $632.5 million for the same period a year ago. Sales declined as
a result of lower demand from the North American light-vehicle market sector, which
The Timken Company
4. -4- included the effects of a strike in the automotive industry. Stronger demand in the
heavy-truck, automotive aftermarket and off-highway market sectors, pricing and
the impact of currency partially offset the drop in light-vehicle demand.
Second-quarter 2008 EBIT was $12.0 million, down 51 percent from $24.6
million in the second quarter of 2007. Results benefited from pricing, currency and
mix, which were more than offset by higher material costs and related LIFO
charges, the impact of the strike and an increase in automotive accounts-receivable
reserves.
For the first half of 2008, Mobile Industries sales of $1.26 billion were up
2 percent from the same period a year ago. First-half 2008 EBIT was $38.6 million,
or 3.1 percent of sales, compared to EBIT of $45.5 million, or 3.7 percent of sales,
in the first half of 2007.
During the second half of 2008, strength in the heavy-truck, automotive
aftermarket and off-highway market sectors is expected to be more than offset by
lower light-vehicle and rail demand. The favorable impact of pricing, mix, portfolio-
management and restructuring initiatives on second-half 2008 earnings is
anticipated to be more than offset by higher raw-material costs and related LIFO
charges, as well as the impact of lower demand. The company expects full-year
results to be comparable to 2007 for the Mobile Industries segment.
Process Industries Segment Results
Process Industries had second-quarter sales of $328.4 million, up 23 percent
from $266.2 million for the same period a year ago. The increase was driven by
strong demand across broad industrial market sectors, new capacity coming online,
pricing and currency.
Second-quarter EBIT was $63.6 million, up 66 percent from $38.4 million in the
prior-year period. EBIT performance benefited from strong volume, increased
capacity for large-bore products, pricing and currency, partially offset by higher raw-
material and manufacturing costs.
The Timken Company
5. -5- For the first half of 2008, Process Industries sales were $641.0 million, up 24
percent from the same period a year ago. First-half 2008 EBIT was $123.5 million,
or 19.3 percent of sales, compared to EBIT of $65.4 million, or 12.7 percent of
sales, in the first half of 2007.
Timken expects to see continued top-line growth in the Process Industries
segment in 2008 compared to 2007, particularly in market sectors where the
company has focused its growth initiatives, including energy, heavy industry,
distribution and in Asia. The company continues to expect strong results in Process
Industries for the full year compared to 2007, although lower than the first half of
2008, tempered by higher raw-material costs.
Aerospace and Defense Segment Results
Aerospace and Defense, which serves the defense, civil helicopter aviation and
commercial original equipment and aftermarket sectors, had second-quarter sales
of $105.7 million, up 42 percent from $74.4 million for the same period last year.
The increase was driven primarily by the Purdy acquisition, completed in the fourth
quarter of last year, as well as strong demand and favorable pricing. The Purdy
acquisition accounted for approximately two-thirds of the overall increase in
Aerospace and Defense sales.
Second-quarter EBIT was $12.1 million, up 190 percent from $4.2 million in the
prior-year period. Performance benefited from the Purdy acquisition and pricing,
partially offset by investments in capacity expansions, including the aerospace and
precision products plant in Chengdu, China, and higher manufacturing and logistics
costs associated with managing strong demand through constrained facilities.
For the first half of 2008, Aerospace and Defense sales were $207.8 million, up
40 percent from the same period a year ago. The Purdy acquisition accounted for
approximately two-thirds of the sales increase. First-half 2008 EBIT was
$19.3 million, or 9.3 percent of sales, compared to EBIT of $10.7 million, or 7.2
percent of sales, in the first half of 2007.
The Timken Company
6. -6- Timken expects aerospace demand to remain strong and performance to benefit
from the integration of the Purdy acquisition and the segment’s broad end-market
profile, resulting in performance during the second half of the year that is anticipated
to be comparable to the first six months of 2008 and well above 2007 results.
Steel Group Results
Sales for the Steel Group, including inter-group sales, were $518.9 million, an
increase of 26 percent from $410.8 million for the same period last year. The
increase was driven by raw-material surcharges and higher demand across all
market sectors, except for automotive.
Second-quarter EBIT was $80.3 million, up 22 percent from $65.9 million in the
prior-year period. Compared to the same period a year ago, results benefited from
volume, mix and surcharges, which were partially offset by higher raw-material and
related LIFO charges, as well as higher manufacturing costs.
For the first six months of 2008, Steel Group sales were $943.9 million, up
18 percent over the first half of last year. EBIT for the first half of 2008 was
$133.7 million, or 14.2 percent of sales, compared to EBIT of $131.4 million, or 16.4
percent of sales in last year’s first half.
Second-half 2008 Steel Group performance is expected to be below the first half
of the year, and above the second half of 2007. The company continues to expect
to benefit from volume, mix and surcharges, partially offset by higher raw-material
and related LIFO charges, as well as increased manufacturing costs.
Outlook
The company expects earnings per diluted share for 2008, excluding special
items, to be $2.95 to $3.10 for the year and $0.65 to $0.75 for the third quarter,
compared to $2.40 and $0.51, respectively, for the same periods in 2007. Industrial
demand is expected to remain strong in 2008 as additional capacity comes online in
key growth markets, while North American automotive demand is anticipated to
decline. Timken will continue to pursue execution initiatives and portfolio
optimization, as well as pricing and better working capital management to improve
The Timken Company
7. -7- operating results and cash flow. The company expects these initiatives to
contribute to record performance in 2008.
Conference Call Information
The company will host a conference call for investors and analysts today to
discuss financial results.
Conference Call: Wednesday, July 30, 2008
11 a.m. Eastern Time
Live Dial-In: 800-344-0593 or 706-634-0975
(Call in 10 minutes prior to be included.)
Conference ID: 24735332
Replay Dial-In through Aug. 6, 2008:
800-642-1687 or 706-645-9291
Live Webcast: www.timken.com/investors
About The Timken Company
The Timken Company (NYSE: TKR, http://www.timken.com) keeps the
world turning, with innovative friction management and power transmission products
and services, enabling our customers to perform faster and more efficiently. With
sales of $5.2 billion in 2007, operations in 27 countries and approximately 25,000
employees, Timken is Where You Turn™ for better performance.
Certain statements in this news release (including statements regarding the
company's forecasts, estimates and expectations) that are not historical in nature
are quot;forward-lookingquot; statements within the meaning of the Private Securities
Litigation Reform Act of 1995. In particular, the statements related to expectations
regarding the future performance of the specific reporting segments and the
company’s financial performance, including the information under the heading
“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 completion of the company’s financial
statements for the second quarter of 2008; fluctuations in raw-material and energy
costs and the operation of the company’s surcharge mechanisms; the company’s
ability to respond to the changes in its end markets, especially the North American
automotive industry; changes in the financial health of the company’s customers;
changes in the expected costs associated with product warranty claims; and the
impact on operations of general economic conditions, higher raw-material and
energy costs, fluctuations in customer demand and the company's ability to achieve
the benefits of its future and ongoing programs and initiatives, including, without
limitation, the implementation of its Mobile Industries Segment restructuring
program and initiatives and the rationalization of the company’s Canton bearing
operations. These and additional factors are described in greater detail in the
company's Annual Report on Form 10-K for the year ended Dec. 31, 2007, page 40
and in the company’s Form 10-Q for the quarter ended March 31, 2008. The
The Timken Company
8. -8- company undertakes no obligation to update or revise any forward-looking
statement.
###
The Timken Company
9. (Unaudited)
CONDENSED CONSOLIDATED STATEMENT OF INCOME AS REPORTED ADJUSTED (1)
(Dollars in thousands, except share data) Q2 2008 Q2 2007 Six Months 08 Six Months 07 Q2 2008 Q2 2007 Six Months 08 Six Months 07
Net sales $ 1,535,549 $ 1,349,231 $ 2,970,219 $ 2,633,744 $ 1,535,549 $ 1,349,231 $ 2,970,219 $ 2,633,744
Cost of products sold 1,190,937 1,050,532 2,312,696 2,067,183 1,190,937 1,050,532 2,312,696 2,067,183
Manufacturing rationalization/reorganization expenses -
cost of products sold 868 10,720 2,242 22,563 - - - -
Gross Profit $ 343,744 $ 287,979 $ 655,281 $ 543,998 $ 344,612 $ 298,699 $ 657,523 $ 566,561
Selling, administrative & general expenses (SG&A) 195,352 178,980 372,490 341,953 195,352 178,980 372,490 341,953
Manufacturing rationalization/reorganization
expenses - SG&A 1,251 649 2,059 1,979 - - - -
(Gain) loss on divestitures - (38) (8) 316 - - - -
Impairment and restructuring 1,807 7,254 4,683 21,030 - - - -
Operating Income $ 145,334 $ 101,134 $ 276,057 $ 178,720 $ 149,260 $ 119,719 $ 285,033 $ 224,608
Other (expense) (1,870) (4,566) (7,642) (6,820) (1,870) (4,566) (7,642) (6,820)
Special items - other income 191 2,029 20,545 2,372 - - - -
Earnings Before Interest and Taxes (EBIT) (2) $ 143,655 $ 98,597 $ 288,960 $ 174,272 $ 147,390 $ 115,153 $ 277,391 $ 217,788
Interest expense, net (10,128) (8,880) (19,728) (16,569) (10,128) (8,880) (19,728) (16,569)
Income From Continuing Operations
Before Income Taxes 133,527 89,717 269,232 157,703 137,262 106,273 257,663 201,219
Provision for income taxes 44,584 34,116 95,824 27,848 44,857 36,547 86,395 69,018
Income From Continuing Operations $ 88,943 $ 55,601 $ 173,408 $ 129,855 $ 92,405 $ 69,726 $ 171,268 $ 132,201
Income from discontinued operations
net of income taxes, special items (3) - (275) - 665 - - - -
Income from discontinued operations
net of income taxes, other (3) - - - - - - - -
Net Income $ 88,943 $ 55,326 $ 173,408 $ 130,520 $ 92,405 $ 69,726 $ 171,268 $ 132,201
Earnings Per Share - Continuing Operations $ 0.93 $ 0.59 $ 1.82 $ 1.38 $ 0.97 $ 0.74 $ 1.79 $ 1.40
Earnings Per Share - Discontinued Operations - - - - - - - -
Earnings Per Share $ 0.93 $ 0.59 $ 1.82 $ 1.38 $ 0.97 $ 0.74 $ 1.79 $ 1.40
Diluted Earnings Per Share - Continuing Operations $ 0.92 $ 0.58 $ 1.80 $ 1.36 $ 0.96 $ 0.73 $ 1.78 $ 1.39
Diluted Earnings Per Share - Discontinued Operations - - - 0.01 - - - -
Diluted Earnings Per Share $ 0.92 $ 0.58 $ 1.80 $ 1.37 $ 0.96 $ 0.73 $ 1.78 $ 1.39
Average Shares Outstanding 95,604,374 94,514,074 95,440,281 94,245,696 95,604,374 94,514,074 95,440,281 94,245,696
Average Shares Outstanding-assuming dilution 96,507,960 95,566,119 96,256,051 95,195,785 96,507,960 95,566,119 96,256,051 95,195,785
10. BUSINESS SEGMENTS
(Dollars in thousands) (Unaudited) Q2 2008 Q2 2007 Six Months 08 Six Months 07
Mobile Industries Segment
Net sales to external customers $ 628,195 $ 632,497 $ 1,263,490 $ 1,241,952
Adjusted earnings (loss) before interest and taxes (EBIT) * (2) 12,040 24,616 38,649 $45,504
Adjusted EBIT Margin (2) 1.9% 3.9% 3.1% 3.7%
Process Industries Segment
Net sales to external customers $ 327,547 $ 265,747 $ 639,716 $ 514,614
Intergroup sales 870 485 1,279 851
Total net sales $ 328,417 $ 266,232 $ 640,995 $ 515,465
Adjusted earnings before interest and taxes (EBIT) * (2) 63,561 38,359 123,460 $65,423
Adjusted EBIT Margin (2) 19.4% 14.4% 19.3% 12.7%
Aerospace and Defense Segment
Net sales to external customers $ 105,676 $ 74,370 $ 207,808 $ 148,084
Adjusted earnings before interest and taxes (EBIT) * (2) 12,126 4,183 19,303 $10,692
Adjusted EBIT Margin (2) 11.5% 5.6% 9.3% 7.2%
Total Bearings and Power Transmission Group
Net sales to external customers $ 1,061,418 $ 972,614 $ 2,111,014 $ 1,904,650
Intergroup sales 870 485 1,279 851
Total net sales $ 1,062,288 $ 973,099 $ 2,112,293 $ 1,905,501
Adjusted earnings before interest and taxes (EBIT) * (2) 87,727 67,158 181,412 121,619
Adjusted EBIT Margin (2) 8.3% 6.9% 8.6% 6.4%
Steel Group (3)
Net sales to external customers $ 474,131 $ 376,617 $ 859,205 $ 729,094
Intergroup sales 44,797 34,152 84,711 71,967
Total net sales $ 518,928 $ 410,769 $ 943,916 $ 801,061
Adjusted earnings before interest and taxes (EBIT) * (2) 80,318 65,888 133,697 131,414
Adjusted EBIT Margin (2) 15.5% 16.0% 14.2% 16.4%
Unallocated corporate expense (19,303) (17,526) (35,728) (33,754)
Intergroup eliminations income (expense) (4) (1,352) (367) (1,990) (1,491)
Consolidated
Net sales to external customers $ 1,535,549 $ 1,349,231 $ 2,970,219 $ 2,633,744
Adjusted earnings before interest and taxes (EBIT) * (2) $ 147,390 $ 115,153 $ 277,391 $ 217,788
Adjusted EBIT Margin (2) 9.6% 8.5% 9.3% 8.3%
(1) quot;Adjustedquot; statements exclude the impact of impairment and restructuring, manufacturing rationalization/reorganization and special charges and credits for all periods shown.
(2) EBIT is defined as operating income plus other income (expense). EBIT Margin is EBIT as a percentage of net sales. EBIT and EBIT margin on a segment basis
exclude certain special items set forth above. EBIT and EBIT 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 EBIT and EBIT Margin best reflect the performance of
the company's business segments and EBIT disclosures are responsive to investors.
(3) Discontinued Operations reflects the Dec. 8, 2006 sale of Timken Latrobe Steel. Steel Group Net sales and Adjusted EBIT have been changed to exclude
Timken Latrobe Steel for all periods. Income From Discontinued Operations Net of Income Taxes, Special Items includes the gain on sale.
Income From Discontinued Operations Net of Income Taxes, Other includes prior activity of Timken Latrobe Steel in accordance with the sales agreement.
(4) Intergroup eliminations represent intergroup profit or loss between the Steel Group and the Bearings and Power Transmission Group.
11. Reconciliation of GAAP net income and EPS - diluted.
This reconciliation is provided as additional relevant information about the company's performance. Management believes adjusted net income and adjusted earnings per share are more
representative of the company's performance and therefore useful to investors. Management also believes that it is appropriate to compare GAAP net income to adjusted net income
in light of special items related to impairment and restructuring and manufacturing rationalization/reorganization costs, Continued Dumping and Subsidy Offset Act (CDSOA) receipts,
and gain/loss on the sale of non-strategic assets.
Second Quarter Six Months
2008 2007 2008 2007
(Dollars in thousands, except per share data) (Unaudited) $ EPS $ EPS (1) $ EPS (1) $ EPS (1)
Net income $ 88,943 $ 0.92 $ 55,326 $ 0.58 $173,408 $1.80 $130,520 $1.37
Pre-tax special items:
Manufacturing rationalization/reorganization expenses -
cost of products sold 868 0.01 10,720 0.11 2,242 0.02 22,563 0.24
Manufacturing rationalization/reorganization expenses - SG&A 1,251 0.01 649 0.01 2,059 0.02 1,979 0.02
(Gain) loss on divestiture - - (38) - (8) - 316 -
Impairment and restructuring 1,807 0.02 7,254 0.08 4,683 0.05 21,030 0.22
Special items - other (income) (191) - (2,029) (0.02) (20,545) (0.21) (2,372) (0.02)
Provision for income taxes (2) (273) - (2,431) (0.03) 9,429 0.10 (41,170) (0.43)
Income from discontinued operations
net of income taxes, special items (3) - - 275 - - - (665) (0.01)
Adjusted net income $ 92,405 $ 0.96 $ 69,726 $ 0.73 $171,268 $1.78 $132,201 $1.39
(1) EPS amounts will not sum due to rounding differences.
(2) Provision for income taxes includes the tax effect of pre-tax special items on our effective tax rate, as well as the impact of discrete tax items recorded during the quarter.
(3) Discontinued Operations relates to the sale of Latrobe Steel on Dec. 8, 2006.
12. Reconciliation of GAAP income from continuing operations and EPS - diluted.
This reconciliation is provided as additional relevant information about the company's performance. Management believes adjusted income from continuing operations and adjusted earnings
per share are more representative of the company's performance and therefore useful to investors. Management also believes that it is appropriate to compare GAAP income from continuing
operations to adjusted income from continuing operations in light of special items related to impairment and restructuring and manufacturing rationalization/reorganization costs, Continued
Dumping and Subsidy Offset Act (CDSOA) receipts, and gain/loss on the sale of non-strategic assets.
Second Quarter Six Months
2008 2007 2008 2007
(Dollars in thousands, except per share data) (Unaudited) $ EPS $ EPS (1) $ EPS (1) $ EPS (1)
Income from continuing operations $ 88,943 $ 0.92 $ 55,601 $ 0.58 $173,408 $1.80 $129,855 $1.36
Pre-tax special items:
Manufacturing rationalization/reorganization expenses -
cost of products sold 868 0.01 10,720 0.11 2,242 0.02 22,563 0.24
Manufacturing rationalization/reorganization expenses - SG&A 1,251 0.01 649 0.01 2,059 0.02 1,979 0.02
(Gain) loss on divestiture - - (38) - (8) - 316 -
Impairment and restructuring 1,807 0.02 7,254 0.08 4,683 0.05 21,030 0.22
Special items - other (income) (191) - (2,029) (0.02) (20,545) (0.21) (2,372) (0.02)
Provision for income taxes (2) (273) - (2,431) (0.03) 9,429 0.10 (41,170) (0.43)
Adjusted income from continuing operations $ 92,405 $ 0.96 $ 69,726 $ 0.73 $171,268 $1.78 $132,201 $1.39
(1) EPS amounts will not sum due to rounding differences.
(2) Provision for income taxes includes the tax effect of pre-tax special items on our effective tax rate, as well as the impact of discrete tax items recorded during the quarter.
Reconciliation of Outlook Information.
Expected earnings per diluted share for the 2008 full year and third quarter exclude special items. Examples of such special items include impairment and restructuring, manufacturing rationalization/
reorganization expenses, gain/loss on the sale of non-strategic assets and payments under the CDSOA. It is not possible at this time to identify the potential amount or significance of
these special items. Management cannot predict whether the company will receive any additional payments under the CDSOA in 2008 and if so, in what amount.
13. Reconciliation of GAAP Income from Continuing Operations before Income Taxes
This reconciliation is provided as additional relevant information about the company's performance. Management believes
Consolidated adjusted earnings before interest and taxes (EBIT) and Total Bearings and Power Transmission Group
adjusted EBIT are more representative of the company's performance and therefore useful to investors. Management also
believes that it is appropriate to compare GAAP Income from Continuing Operations before Income Taxes to Consolidated adjusted
EBIT in light of special items related to impairment and restructuring and manufacturing rationalization/reorganization costs,
Continued Dumping and Subsidy Offset Act (CDSOA) receipts, and gain/loss on the sale of non-strategic assets.
Second Quarter Six Months
2008 2007 2008 2007
(Thousands of U.S. dollars) (Unaudited) $ $ $ $
Income from Continuing Operations before Income Taxes $ 133,527 $ 89,717 $ 269,232 $ 157,703
Pre-tax reconciling items:
Interest expense 11,643 10,078 22,640 19,723
Interest (income) (1,515) (1,198) (2,912) (3,154)
Manufacturing rationalization/reorganization expenses -
cost of products sold 868 10,720 2,242 22,563
Manufacturing rationalization/reorganization expenses - SG&A 1,251 649 2,059 1,979
(Gain) loss on divestiture - (38) (8) 316
Impairment and restructuring 1,807 7,254 4,683 21,030
Special items - other (income) (191) (2,029) (20,545) (2,372)
Consolidated adjusted earnings before interest and taxes (EBIT) $ 147,390 $ 115,153 $ 277,391 $ 217,788
Steel Group adjusted earnings before interest and taxes (EBIT) (80,318) (65,888) (133,697) (131,414)
Unallocated corporate expense 19,303 17,526 35,728 33,754
Intergroup eliminations expense (income) 1,352 367 1,990 1,491
Total Bearings and Power Transmission Group
adjusted earnings before interest and taxes (EBIT) $ 87,727 $ 67,158 $ 181,412 $ 121,619
14. Reconciliation of Total Debt to Net Debt and the Ratio of Net Debt to Capital:
(Dollars in thousands) (Unaudited) June 30, 2008 March 31, 2008 Dec. 31, 2007
Short-term debt $ 302,059 $ 148,032 $ 142,568
Long-term debt 559,315 725,239 580,587
Total Debt 861,374 873,271 723,155
Less: Cash and cash equivalents (74,735) (68,206) (30,144)
Net Debt $ 786,639 $ 805,065 $ 693,011
Shareholders' equity $ 2,178,173 $ 2,069,493 $ 1,960,669
Ratio of Total Debt to Capital 28.3% 29.7% 26.9%
Ratio of Net Debt to Capital (Leverage) 26.5% 28.0% 26.1%
This reconciliation is provided as additional relevant information about Timken's financial position. Capital is defined as total debt plus shareholder's equity.
Management believes Net Debt is more indicative of Timken's financial position, due to the amount of cash and cash equivalents.
15. CONDENSED CONSOLIDATED BALANCE SHEET June 30, Dec 31,
(Dollars in thousands) (Unaudited) 2008 2007
ASSETS
Cash & cash equivalents $ 74,735 $ 30,144
Accounts receivable 909,409 748,483
Inventories 1,247,759 1,087,712
Other current assets 165,044 178,912
Total Current Assets 2,396,947 2,045,251
Property, plant & equipment 1,774,744 1,722,081
Goodwill 277,759 271,784
Other assets 345,429 340,121
Total Assets $ 4,794,879 $ 4,379,237
LIABILITIES
Accounts payable & other liabilities $ 576,630 $ 528,052
Short-term debt 302,059 142,568
Income taxes 33,897 21,787
Accrued expenses 220,502 212,015
Total Current Liabilities 1,133,088 904,422
Long-term debt 559,315 580,587
Accrued pension cost 158,879 169,364
Accrued postretirement benefits cost 658,633 662,379
Other non-current liabilities 106,791 101,816
Total Liabilities 2,616,706 2,418,568
SHAREHOLDERS' EQUITY 2,178,173 1,960,669
Total Liabilities and Shareholders' Equity $ 4,794,879 $ 4,379,237
16. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the three months ended For the six months ended
June 30, June 30, June 30, June 30,
(Dollars in thousands) (Unaudited) 2008 2007 2008 2007
Cash Provided (Used)
OPERATING ACTIVITIES
Net Income $ 88,943 $ 55,326 $ 173,408 $ 130,520
Earnings from discontinued operations - 275 - (665)
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 59,605 47,975 117,080 102,475
Pension and other postretirement expense 18,129 27,738 43,940 60,471
Pension and other postretirement benefit payments (15,914) (41,693) (41,781) (98,544)
Accounts receivable (61,169) (11,481) (132,793) (76,257)
Inventories (52,105) 6,273 (120,683) (11,518)
Accounts payable and accrued expenses 56,930 29,272 54,957 (23,343)
Other 1,847 (17,085) (10,773) 6,819
Net Cash Provided by Operating Activities - Continuing Operations 96,266 96,600 83,355 89,958
Net Cash (Used) Provided by Operating Activities - Discontinued Operations - (275) - 665
Net Cash Provided by Operating Activities 96,266 96,325 83,355 90,623
INVESTING ACTIVITIES
Capital expenditures (75,030) (64,037) (127,447) (124,979)
Other (1,040) 8,833 28,135 11,957
Divestments - - - -
Acquisitions (1,577) - (56,906) (1,523)
Net Cash Used by Investing Activities (77,647) (55,204) (156,218) (114,545)
FINANCING ACTIVITIES
Cash dividends paid to shareholders (16,389) (15,249) (32,709) (30,401)
Net proceeds from common share activity 14,121 18,759 15,708 30,645
Net borrowings (payments) on credit facilities (12,416) (74,668) 127,140 (7,853)
Net Cash (Used) Provided by Financing Activities (14,684) (71,158) 110,139 (7,609)
Effect of exchange rate changes on cash 2,594 2,558 7,315 3,798
Increase (Decrease) in Cash and Cash Equivalents 6,529 (27,479) 44,591 (27,733)
Cash and Cash Equivalents at Beginning of Period 68,206 100,818 30,144 101,072
Cash and Cash Equivalents at End of Period $ 74,735 $ 73,339 $ 74,735 $ 73,339