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Timken Upgrades Third-Quarter, Full-Year Earnings Estimates
10/01/2008 - Timken raises its estimate for third-quarter 2008 earnings per diluted share, excluding special items, to $1.00 to $1.10 based on continued strong global industrial demand, its capacity-expansion initiatives, and declining scrap prices.
The Timken Co. has raised its estimate for third-quarter 2008 earnings per diluted share, excluding special items, to $1.00 to $1.10, as compared to its prior estimate of $0.65 to $0.75 per share.
Timken said the adjustment was prompted by continued strong global industrial demand and its capacity-expansion initiatives, as well as declining scrap prices and resulting lower LIFO charges.
“Our investments in new industrial capacity in rapidly growing global markets and our ability to recover high raw-material costs have pushed our performance well beyond our own expectations for the quarter,” said James W. Griffith, Timken’s President and CEO. “Despite continued challenges in automotive markets and softening in some sectors of the global economy, we expect record full-year earnings in 2008 and with our improved execution to carry that momentum forward into 2009.”
The company increased its full-year 2008 earnings estimate to $3.30 to $3.45 per diluted share, excluding special items, up from its previous estimate of $2.95 to $3.10 per diluted share, excluding special items. The company said the implied fourth-quarter earnings estimate ($0.52 to $0.57 per diluted share, excluding special items) reflects strength in industrial markets, weakness in automotive markets, seasonal plant shutdowns and the timing of recovery of raw-material costs, which are expected to remain at historically high levels.
Timken will announce its complete quarterly financial results before the New York Stock Exchange opens for trading on Oct. 24.
Timken provides innovative friction management and power transmission products and services. Its approximately 25,000 employees generated sales of $5.2 billion in 2007 from its operations in 27 countries.
