Timken Realignment to Drive Growth, Performance
08/14/2007 - Timken will restructure the company into two divisions – a Steel Group and a new Bearings and Power Transmission Group - to support continued improvement in operational performance.
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Timken will report its third-quarter 2007 financial results using the existing Steel, Industrial and Automotive Groups.
Beginning with the fourth quarter of 2007, the company expects change its financial reporting, providing results for the Steel Group as before, along with more detailed results for the new Bearings and Power Transmission Group.
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Under the new model, Timken will operate with two major business groups: the Steel Group, which will be led by Salvatore J. Miraglia Jr., who will continue as President of the Steel Group; and the Bearings and Power Transmission Group, which will be led by Michael C. Arnold as Executive Vice President and President of the group.
Timken has also named Jacqueline A. Dedo Senior Vice President, Innovation and Growth. In this role, Dedo will be responsible for leading the company’s strategic initiatives to accelerate the pace of innovation and growth.
"With focused leadership and a strong balance sheet, we are well positioned to aggressively pursue growth opportunities with the potential to create exceptional value for customers and shareholders," said James W. Griffith, Timken’s President and CEO. "In addition, as we implement this model, we expect to benefit from faster, more effective decision-making and less complexity in all parts of our business, allowing us to drive further improvement in our financial performance.”
According to the company, the organizational changes focus primarily on improving Timken’s operating effectiveness. They are also expected to streamline operations and eliminate redundancies. When fully implemented, the company expects to save approximately $10 million to $20 million as a result of the changes.
Timken’s new Bearings and Power Transmission Group includes four divisions:
- Mobile Industries, which comprises the rail, off-highway, agriculture, heavy truck and passenger car and light truck market sectors.
- Process Industries, which encompasses the heavy industry, power transmission and energy market sectors.
- Aerospace & Defense, serving the friction-management and power-transmission needs of commercial and military aviation customers through original equipment manufacturers and the aerospace aftermarket.
- Distribution & Services, which provides a full range of bearings, seals, grease, condition monitoring and other products and services through distributors worldwide.
Timken provides innovative friction management and power transmission products and services to a wide range of industries. The company’s approximately 25,000 employees generated sales of $5.0 billion in 2006 from its operations in 26 countries.
