Timken Co. (TKR) Misses Q3 EPS by 11c, Guides FY
Timken Co. (NYSE: TKR) reported Q3 EPS of $0.83, $0.11 worse than the analyst estimate of $0.94. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.26 billion.
Timken Co. sees FY2012 EPS of $4.75-4.95, versus the consensus of $4.78.
Outlook:
The company expects lower shipments to customers in many of its global markets in the fourth quarter. As a result, Timken now expects 2012 sales to be down 3 to 5 percent compared to 2011 with:
Mobile Industries' sales down 4 to 6 percent for the year reflecting the impact of exited business due to the company's market strategy as well as year-end customer inventory adjustments;
Process Industries' sales up 6 to 8 percent, driven by the full-year impact of acquisitions;
Aerospace and Defense sales up 8 to 10 percent, driven by increased demand across most end markets, led by the defense sector; and
Steel sales down 11 to 13 percent, driven by lower industrial end-market demand and surcharges, partially offset by improved pricing.
Timken now projects 2012 annual earnings to range from $4.75 to $4.95 per diluted share, which includes the one-time benefit of CDSOA receipts totaling $0.70 per share and the St. Thomas plant closure costs totaling approximately $0.30 per share.
Timken expects to generate strong cash from operations of approximately $535 million in 2012. Free cash flow is projected to be $145 million after making capital expenditures of about $300 million and paying about $90 million in dividends. Excluding discretionary pension and VEBA trust contributions of approximately $245 million, net of tax, and CDSOA receipts of approximately $70 million, net of tax, the company forecasts free cash flow of approximately $320 million in 2012.
For earnings history and earnings-related data on Timken Co. (TKR) click here.
Timken Co. sees FY2012 EPS of $4.75-4.95, versus the consensus of $4.78.
Outlook:
The company expects lower shipments to customers in many of its global markets in the fourth quarter. As a result, Timken now expects 2012 sales to be down 3 to 5 percent compared to 2011 with:
Mobile Industries' sales down 4 to 6 percent for the year reflecting the impact of exited business due to the company's market strategy as well as year-end customer inventory adjustments;
Process Industries' sales up 6 to 8 percent, driven by the full-year impact of acquisitions;
Aerospace and Defense sales up 8 to 10 percent, driven by increased demand across most end markets, led by the defense sector; and
Steel sales down 11 to 13 percent, driven by lower industrial end-market demand and surcharges, partially offset by improved pricing.
Timken now projects 2012 annual earnings to range from $4.75 to $4.95 per diluted share, which includes the one-time benefit of CDSOA receipts totaling $0.70 per share and the St. Thomas plant closure costs totaling approximately $0.30 per share.
Timken expects to generate strong cash from operations of approximately $535 million in 2012. Free cash flow is projected to be $145 million after making capital expenditures of about $300 million and paying about $90 million in dividends. Excluding discretionary pension and VEBA trust contributions of approximately $245 million, net of tax, and CDSOA receipts of approximately $70 million, net of tax, the company forecasts free cash flow of approximately $320 million in 2012.
For earnings history and earnings-related data on Timken Co. (TKR) click here.