The Timken Company reported record third quarter sales and net income that more than doubled from the previous year. Sales increased 15% to $1.3 billion due to strong performance in the industrial and steel groups. However, the automotive group continued to struggle in the challenging North American market. The company increased its full-year earnings outlook due to strong global industrial demand and expects its restructuring programs to improve automotive group performance and reduce costs.
This document brings together a set of latest data points and publicly available information relevant for Automotive. We are very excited to share this content and believe that readers will benefit immensely from this periodic publication immensely.
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This document brings together a set of latest data points and publicly available information relevant for Automotive. We are very excited to share this content and believe that readers will benefit immensely from this periodic publication immensely.
This document brings together a set
of latest data points and publicly
available information relevant for
Energy Industry. We are very excited
to share this content and believe that
readers will benefit from this
periodic publication immensely.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
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.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
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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
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@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
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
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@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.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
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Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Card
timken Q305_Earnings
1. NEWS RELEASE
Timken Company Earnings Per Share Double
on Record Third Quarter Sales;
Outlook Raised for Year
CANTON, OH – October 26, 2005 – The Timken Company today reported record
third quarter sales of $1.3 billion, up 15 percent from $1.1 billion last year. Net income of
$39.8 million or $0.43 per diluted share, was more than double last year’s third quarter net
income of $17.5 million or $0.19 per diluted share. Excluding special items, earnings per
diluted share of $0.58 were more than double the $0.27 per diluted share reported a year
ago. Special items in the third quarter of 2005 totaled $28.3 million of pretax expense,
which was primarily for restructuring automotive operations as well as for industrial
manufacturing rationalization.
“We delivered strong performance this quarter as we continued to capitalize on the
ongoing strength of global industrial markets,” said James W. Griffith, president and CEO.
“While we had record third quarter results in the Industrial and Steel Groups, our Automotive
Group performance continued to be challenged.”
The Timken Company
NEWS MEDIA CONTACT:
“We are focusing our growth initiatives to take advantage of the strong industrial
Denise Bowler
Manager - Associate & Financial
Communications demand. We have continued to add industrial bearing capacity around the world and invest
Mail Code: GNW-37
1835 Dueber Avenue, S.W.
in acquisitions in key markets to complement organic growth,” Mr. Griffith said. “The record
Canton, OH 44706-0927 U.S.A.
Telephone: (330) 471-3485
Facsimile: (330) 471-4118 performance in our steel business reflects leveraging strong demand in industries such as
denise.bowler@timken.com
aerospace and energy. In our automotive operations, we began our restructuring program to
INVESTOR CONTACT:
Steve Tschiegg
Manager - Investor Relations reduce fixed costs and improve performance as we deal with the difficult environment in the
Mail Code: GNE-26
1835 Dueber Avenue, S.W.
North American automotive industry.”
Canton, OH 44706-0928 U.S.A.
Telephone: (330) 471-7446
Facsimile: (330) 471-2797
For the first nine months of 2005, sales were $3.9 billion, an increase of 17 percent
steve.tschiegg@timken.com
from the prior year. Earnings per diluted share for the first nine months were $1.79 in 2005
For Additional Information:
versus $0.79 in 2004. Excluding special items, earnings per diluted share in the first nine
www.timken.com/media
www.timken.com/investors
2. -2- months of 2005 were $1.99 versus $0.91 in 2004. Special items in the first nine months of
2005 totaled $33.1 million of pretax expense, compared to $18.0 million a year ago.
The company’s effective tax rate for the first nine months was 31.4 percent, down
from 34.8 percent in the first half due primarily to benefits related to export tax incentives as
well as improved earnings in certain foreign jurisdictions. Excluding special items, the
effective tax rate for the first nine months was 33.1 percent. The company expects to
maintain this rate going forward.
Total debt on September 30, 2005 was $802.6 million, or 36.4 percent of capital.
Total debt was reduced $39.5 million from the end of the second quarter. The company
expects to continue to reduce its debt levels and leverage during the fourth quarter.
Industrial Group Results
For the third quarter, Industrial Group sales were $468.2 million, up 13 percent from
$414.0 million last year. Sales grew in all industrial segments, with the largest increases in
distribution and rail.
Earnings before interest and taxes (EBIT) increased to $47.4 million from last year’s
$45.2 million, reflecting higher volume and pricing. EBIT margin was 10.1 percent,
compared to 10.9 percent a year ago, reflecting higher costs to support the company’s
growth initiatives, the impact of currency and higher incentive compensation. The company
expects EBIT margin to improve in the fourth quarter to levels above last year.
During the quarter, the Industrial Group expanded operations in Wuxi, China to
serve industrial customers with spherical bearings. In October, the company continued to
expand its aftermarket services business with the acquisition of Bearing Inspection, Inc.,
which provides bearing inspection and overhaul services to the aerospace industry.
During the quarter, the company also reached a new four-year agreement with the
United Steelworkers union, covering employees in its Canton-area bearing and steel plants.
As a result of the contract settlement, the company has refined its plans to rationalize the
Canton bearing operations. This initiative is expected to deliver annual pretax savings of
approximately $25 million through streamlining operations and workforce reductions, with
costs of approximately $35 to $40 million over the next four years.
The Timken Company
3. -3- For the first nine months of 2005, Industrial Group sales were $1.4 billion, up 14
percent from a year ago, while EBIT for the first nine months of 2005 increased to $158.1
million – or 11.0 percent of sales – compared to 10.3 percent in the first nine months of
2004.
Automotive Group Results
Automotive Group sales were $408.0 million, up 10 percent from $370.9 million in
the third quarter of last year. The increase in sales was due to improved pricing and growth
in heavy truck volumes. The Automotive Group reported a loss before interest and taxes of
$6.0 million, compared to a loss of $7.1 million the prior year. EBIT margin in the third
quarter improved 40 basis points to a negative 1.5 percent from the same period a year ago.
The Automotive Group has made progress with improved pricing offsetting high raw material
costs. However, the Group was negatively affected by currency and the impact of Delphi’s
Chapter 11 filing. The company expects the Automotive Group to return to profitability in the
fourth quarter.
During the third quarter, the Automotive Group announced restructuring plans,
including closing of facilities, workforce reductions and combining and relocating engineering
resources. Additional announcements are expected in coming months. The restructuring
initiative is targeted to deliver annual pretax savings of approximately $40 million, with costs
of approximately $80 to $90 million over two years.
For the first nine months of 2005, Automotive Group sales were $1.3 billion, up 5
percent from the first nine months of last year. The Group recorded a loss of $12.4 million
for the first nine months, compared to EBIT of $17.8 million in the first nine months of 2004.
Steel Group Results
The Steel Group had record third quarter sales of $427.9 million, up 20 percent from
$355.3 million last year. The increase was due to strong demand in industrial, aerospace
and energy segments as well as price increases and surcharges to recover high raw
material costs.
The Steel Group reported record third quarter EBIT of $49.7 million, compared to
$16.8 million last year. EBIT margin was 11.6 percent, compared to 4.7 percent a year ago.
The Timken Company
4. -4- Price increases, surcharges for scrap steels and alloys, increased volume and high labor
productivity drove the strong EBIT performance. While scrap costs fell below last year’s
extremely high levels, alloy costs increased from a year ago. The company continues to
expect lower profitability in the fourth quarter due to seasonal factors.
For the first nine months, Steel Group sales were $1.3 billion, up 35 percent over
the same period last year. EBIT for the first nine months was $170.2 million – or 12.7
percent of sales – compared to 2.3 percent of sales in the first nine months of 2004.
Outlook
The company is increasing its full-year earnings estimate, excluding special items, to $2.55
to $2.65 per diluted share from the prior estimate of $2.40 to $2.55. Strong industrial
markets should continue to benefit Industrial and Steel Group performance in the fourth
quarter. The company also expects to see continued improvement in its Automotive Group,
despite the challenging environment in the North American automotive industry. In
commenting on the financial outlook, Mr. Griffith said: “We expect to continue benefiting
from our participation in diverse industrial markets. In particular, increased activity in mining,
oil and gas and other energy-related markets should result in additional demand for our
products.”
Conference Call Information
The company will host a conference call for investors and analysts today to discuss
financial results.
Conference Call: Wednesday, October 26, 2005
11:00 a.m. Eastern Daylight Time
All Callers: Live Dial-In: 706-634-0975
(Call in 10 minutes prior to be included)
Replay Dial-In through November 2, 2005: 706-645-9291
Conference ID: 3420213
Live Web cast: www.timken.com
The Timken Company (NYSE: TKR; www.timken.com) keeps the world turning, with
innovative ways to make customers’ products run smoother, faster and more efficiently.
The Timken Company
5. -5- Timken’s highly engineered bearings, alloy steels and related products and services turn up
everywhere – on land, on the seas and in space. With operations in 27 countries, sales of
$4.5 billion in 2004 and 26,000 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 expected
savings and costs of the Company’s initiatives and expectations concerning the
Company’s financial performance, as well as statements contained in the paragraph
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 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 the industrial
markets; changes in the financial health of the Company’s customers; changes in the
Company’s effective tax rate; 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, including the implementation of its Automotive Group restructuring, the
rationalization of the Company’s Canton bearing operations, manufacturing
transformation and rationalization activities. These and additional factors are
described in greater detail in the Company's Annual Report on Form 10-K for the
year ended December 31, 2004, in the Company's 2004 Annual Report, page 64 and
in the Company’s Form 10-Q for the quarter ended June 30, 2005. The Company
undertakes no obligation to update or revise any forward-looking statement.
###
The Timken Company
6. CONSOLIDATED STATEMENT OF INCOME AS REPORTED ADJUSTED (1)
(Thousands of U.S. dollars, except share data) 3Q 05 3Q 04 Nine Months 05 Nine Months 04 3Q 05 3Q 04 Nine Months 05 Nine Months 04
Net sales $1,258,133 $1,096,724 $3,887,351 $3,325,796 $1,258,133 $1,096,724 $3,887,351 $3,325,796
Cost of products sold 1,002,705 911,681 3,076,089 2,730,267 1,002,705 911,681 3,076,089 2,730,267
Manufacturing rationalization/Integration/Reorganization expenses - cost of products sold 3,017 998 10,189 3,374 - - - -
Gross Profit $252,411 $184,045 $801,073 $592,155 $255,428 $185,043 $811,262 $595,529
Selling, administrative & general expenses (SG&A) 162,231 128,507 487,325 408,355 162,231 128,507 487,325 408,355
Manufacturing rationalization/Integration/Reorganization expenses - SG&A 790 6,499 1,477 16,745 - - - -
Impairment and restructuring 24,451 2,939 24,407 3,998 - - - -
Operating Income $64,939 $46,100 $287,864 $163,057 $93,197 $56,536 $323,937 $187,174
Other expense (4,265) (4,892) (12,433) (19,000) (4,265) (4,892) (12,433) (19,000)
Special items - other (expense) income (8) (719) 2,987 6,076 - - - -
Earnings Before Interest and Taxes (EBIT) (2) $60,666 $40,489 $278,418 $150,133 $88,932 $51,644 $311,504 $168,174
Interest expense, net (11,968) (12,323) (37,157) (35,175) (11,968) (12,323) (37,157) (35,175)
Income Before Income Taxes $48,698 $28,166 $241,261 $114,958 $76,964 $39,321 $274,347 $132,999
Provision for income taxes 8,867 10,703 75,861 43,684 23,501 14,942 90,809 50,540
Net Income $39,831 $17,463 $165,400 $71,274 $53,463 $24,379 $183,538 $82,459
Earnings Per Share $0.43 $0.19 $1.81 $0.79 $0.58 $0.27 $2.01 $0.92
Earnings Per Share-assuming dilution $0.43 $0.19 $1.79 $0.79 $0.58 $0.27 $1.99 $0.91
Average Shares Outstanding 91,688,231 90,166,612 91,238,444 89,706,620 91,688,231 90,166,612 91,238,444 89,706,620
Average Shares Outstanding-assuming dilution 92,821,344 91,058,739 92,181,013 90,579,359 92,821,344 91,058,739 92,181,013 90,579,359
(1) quot;Adjustedquot; statements exclude the impact of impairment and restructuring, manufacturing rationalization/integration/reorganization expenses
and special charges and credits for all periods shown.
7. BUSINESS SEGMENTS
(Thousands of U.S. dollars) 3Q 05 3Q 04 Nine Months 05 Nine Months 04
Industrial Group
Net sales to external customers $467,774 $413,589 $1,433,746 $1,261,274
Intersegment sales 435 416 1,461 983
Total net sales $468,209 $414,005 $1,435,207 $1,262,257
Adjusted earnings before interest and taxes (EBIT) * (2) $47,444 $45,200 $158,072 $130,277
Adjusted EBIT Margin (2) 10.1% 10.9% 11.0% 10.3%
Automotive Group
Net sales to external customers $407,959 $370,876 $1,254,173 $1,190,641
Adjusted (loss) earnings before interest and taxes (EBIT) * (2) ($6,040) ($7,148) ($12,357) $17,782
Adjusted EBIT (Loss) Margin (2) -1.5% -1.9% -1.0% 1.5%
Steel Group
Net sales to external customers $382,400 $312,259 $1,199,432 $873,881
Intersegment sales 45,512 43,044 141,248 121,147
Total net sales $427,912 $355,303 $1,340,680 $995,028
Adjusted earnings before interest and taxes (EBIT) * (2) $49,698 $16,760 $170,171 $22,510
Adjusted EBIT Margin (2) 11.6% 4.7% 12.7% 2.3%
*Industrial Group, Automotive Group and Steel Group EBIT do not equal Consolidated EBIT due to intersegment adjustments which are eliminated upon consolidation.
(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
our business segments and EBIT disclosures are responsive to investors.
8. Reconciliation of Total Debt to Net Debt and the Ratio of Total Debt and Net Debt to Capital:
(Thousands of U.S. Dollars) Sep 30, 2005 June 30, 2005 Dec 31, 2004
Short-term debt $269,441 $232,487 $158,690
Long-term debt 533,169 609,627 620,634
Total Debt 802,610 842,114 779,324
Less: cash and cash equivalents (63,105) (66,980) (50,967)
Net Debt $739,505 $775,134 $728,357
Shareholders' equity 1,403,930 1,342,163 1,269,848
Ratio of Total Debt to Capital 36.4% 38.6% 38.0%
Ratio of Net Debt to Capital (Leverage) 34.5% 36.6% 36.5%
This reconciliation is provided as additional relevant information about Timken's financial position. Capital is defined as debt plus shareholders' equity.
Management believes Net Debt is more representative of Timken's indicative financial position, due to a temporary increase in cash and cash equivalents.
Reconciliation of GAAP net income and EPS - Basic and Diluted as previously disclosed.
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/integration/reorganization costs,
Continued Dumping and Subsidy Offset Act (CDSOA) receipts, and loss (gain) on the sale of non-strategic assets.
Nine Months
3Q 05 3Q 04 05 04
(Thousands of U.S. dollars, except share data) $ EPS $ EPS $ EPS $ EPS
Net income $39,831 $0.43 $17,463 $0.19 $165,400 $1.79 $71,274 $0.79
Pre-tax special items:
Manufacturing rationalization/integration/reorganization expenses - cost of products sold 3,017 0.03 998 0.01 10,189 0.11 3,374 0.04
Manufacturing rationalization/integration/reorganization expenses - SG&A 790 0.01 6,499 0.07 1,477 0.02 16,745 0.18
Impairment and restructuring 24,451 0.26 2,939 0.03 24,407 0.26 3,998 0.04
Special items - other (income) expense:
Loss (Gain) on sale of non-strategic assets 35 - - - (2,535) (0.03) - -
CDSOA receipts, net of expenses - - - - - - (7,743) (0.09)
Adoption of FIN 46 for investment in PEL - - - - - - 948 (3) 0.01
Other (27) - 719 0.01 (452) - 719 0.01
Tax effect of special items (14,634) (0.15) (4,239) (0.04) (14,948) (0.16) (6,856) (0.07)
Adjusted net income $53,463 $0.58 $24,379 $0.27 $183,538 $1.99 $82,459 $0.91
(3) In the first quarter of 2004, Timken adopted Interpretation No. 46, quot;Consolidation of Variable Interest Entities, an interpretation of Accounting Research
Bulletin No. 51quot; (FIN 46). Timken concluded that its investment in a joint venture, PEL, was subject to the provisions of FIN 46 and that Timken was the primary
beneficiary of PEL. Accordingly, Timken consolidated PEL, effective March 31, 2004, which resulted in a charge to earnings related to the cumulative effect of change
in accounting principle.
Reconciliation of Outlook Information -
Expected earnings per diluted share for the full year exclude special items. Examples of such special items include impairment and restructuring, manufacturing
rationalization/integration/reorganization expenses, loss (gain) on the sale of non-strategic assets, and receipts under the CDSOA. It is not possible at this time to identify the potential amount or significance
of these special items. We cannot predict whether we will receive any additional payments under the CDSOA in 2005 and if so, in what amount. If we do receive any additional
CDSOA payments, they will most likely be received in the fourth quarter.
9. CONSOLIDATED BALANCE SHEET Sep 30 Dec 31
2005 2004
(Thousands of U.S. dollars)
ASSETS
Cash & cash equivalents $63,105 $50,967
Accounts receivable 791,729 717,425
Deferred income taxes 94,821 90,066
Inventories 1,004,939 874,833
Total Current Assets $1,954,594 $1,733,291
Property, plant & equipment 1,516,325 1,583,425
Goodwill 190,200 189,299
Other assets 446,703 408,056
Total Assets $4,107,822 $3,914,071
LIABILITIES
Accounts payable & other liabilities $514,255 $504,585
Short-term debt 269,441 158,690
Accrued expenses 503,247 353,623
Total Current Liabilities $1,286,943 $1,016,898
Long-term debt 533,169 620,634
Accrued pension cost 324,954 468,644
Accrued postretirement benefits cost 504,425 490,366
Other non-current liabilities 54,401 47,681
Total Liabilities $2,703,892 $2,644,223
SHAREHOLDERS' EQUITY 1,403,930 1,269,848
Total Liabilities and Shareholders' Equity $4,107,822 $3,914,071
10. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the three months ended For the nine months ended
Sep 30 Sep 30 Sep 30 Sep 30
(Thousands of U.S. dollars) 2005 2004 2005 2004
Cash Provided (Used)
OPERATING ACTIVITIES
Net Income $39,831 $17,463 $165,400 $71,274
Adjustments to reconcile net income to net cash provided (used)
by operating activities:
Depreciation and amortization 53,066 51,579 160,765 156,916
Other 207 398 (4,203) 6,153
Changes in operating assets and liabilities:
Accounts receivable 13,460 (17,659) (110,262) (121,331)
Inventories (37,512) (71,857) (162,106) (91,705)
Other assets 146 12,885 (28,473) 851
Accounts payable and accrued expenses 2,176 (15,317) 78,992 (50,048)
Foreign currency translation (gain) loss (1,854) (1,567) 5,581 1,742
Net Cash Provided (Used) by Operating Activities $69,520 ($24,075) $105,694 ($26,148)
INVESTING ACTIVITIES
Capital expenditures ($45,379) ($39,533) ($128,605) ($95,229)
Other 2,937 (386) 6,847 (297)
Proceeds from disposals of non-strategic assets 848 - 11,729 -
Acquisitions (73) (2,409) (6,629) (10,233)
Net Cash Used by Investing Activities ($41,667) ($42,328) ($116,658) ($105,759)
FINANCING ACTIVITIES
Cash dividends paid to shareholders ($13,824) ($11,725) ($41,238) ($35,014)
Proceeds from exercise of stock options 18,160 3,542 30,740 13,744
Net (payments) borrowings on credit facilities (37,533) 58,324 38,399 173,315
Net Cash (Used) Provided by Financing Activities ($33,197) $50,141 $27,901 $152,045
Effect of exchange rate changes on cash $1,469 $1,664 ($4,799) $4,107
(Decrease) Increase in Cash and Cash Equivalents (3,875) (14,598) 12,138 24,245
Cash and Cash Equivalents at Beginning of Period $66,980 $67,469 $50,967 $28,626
Cash and Cash Equivalents at End of Period $63,105 $52,871 $63,105 $52,871