The Timken Company has reported its fourth-quarter and full-year 2024 results, revealing a range of financial metrics compared to the previous year. In the fourth quarter of 2024, the company's sales were $1.07 billion, representing a 1.6% decrease from the same period in 2023. The net income margin for the quarter was 6.6%, an improvement from 5.4% in the fourth quarter of the previous year. However, the diluted earnings per share (EPS) for the quarter decreased by 8.8% to $1.01, while the adjusted EPS dropped by 15.3% to $1.16 compared to the same period in 2023.
Looking at the full-year 2024 results, Timken's sales were $4.6 billion, down 4.1% from 2023. The net income margin for the year was 7.7%, a decrease from 8.3% in 2023. The diluted EPS for the year was $4.99, a decrease of 8.8% from the previous year, while the adjusted EPS dropped by 17.9% to $5.79 compared to 2023.
The company also provided an initial estimate for 2025 EPS, forecasting a range of $4.30 to $4.80, with adjusted EPS in the range of $5.30 to $5.80. Timken is implementing cost reduction actions expected to generate gross savings of approximately $75 million in 2025.
In terms of segment performance, the Engineered Bearings segment saw a decrease in sales by 2.3% in the fourth quarter of 2024, while the Industrial Motion segment experienced a 0.3% decrease compared to the same period a year ago.
The company's CEO, Tarak Mehta, acknowledged the challenging economic environment and expressed the company's focus on operational excellence and initiatives to deliver resilient performance in 2025. Mehta also highlighted the company's expectation for margins to be supported by cost-reduction actions and the plan to generate higher free cash flow with improved working capital performance.
Today the company's shares have moved 3.7% to a price of $81.83. For more information, read the company's full 8-K submission here.
