Timken Company recently released its 10-K report, providing an in-depth look at its financial performance and operations. The company, founded in 1899 and headquartered in North Canton, Ohio, is a leading designer, manufacturer, and seller of engineered bearings and industrial motion products, along with related services. Timken operates under two reportable segments: Engineered Bearings and Industrial Motion.
In 2024, Timken posted $4.6 billion in sales and employed approximately 19,000 people globally, operating in 45 countries. The Engineered Bearings segment offers a variety of bearing products, including tapered, spherical, and cylindrical roller bearings, serving industries such as wind energy, agriculture, automotive, and aerospace. The Industrial Motion segment provides industrial drives, automatic lubrication systems, linear motion products, and more, serving industries like solar energy, aerospace, and medical.
The 10-K report details the company's financial performance in 2024. Timken reported a 4.1% decrease in net sales, amounting to $4,573.0 million, compared to $4,769.0 million in 2023. Net income attributable to The Timken Company was $352.7 million in 2024, down 10.5% from $394.1 million in 2023. Diluted earnings per share also decreased by 8.8%, from $5.47 in 2023 to $4.99 in 2024.
The decrease in net sales was primarily driven by lower demand in China and Europe, along with the unfavorable impact of foreign currency exchange rate changes, partially offset by the benefit of acquisitions and favorable pricing. The decrease in net income was attributed to lower volume, higher manufacturing costs, the unfavorable impact of foreign currency exchange rate changes, and an increase in net interest expense, partially offset by favorable price/mix, lower impairment and pension remeasurement charges, and a gain on the sale of certain real estate.
Looking ahead to 2025, Timken expects full-year revenue to range from down 4% to 1% compared to 2024, primarily due to the unfavorable impact of foreign currency exchange rates and lower demand in Europe, partially offset by the benefit of acquisitions completed during 2024 and slightly favorable pricing. The company also expects its earnings to be down in 2025 compared with 2024, primarily due to the impact of foreign currency exchange rate changes and lower organic sales volume, offset partially by lower operating costs and the favorable impact of acquisitions.
The 10-K report also highlights the company's achievements in 2024, including its annual CSR report, strategic acquisitions, dividend increases, CEO succession plan, and recognition as one of the World's Most Ethical Companies, among others.
The report provides detailed insights into the company's financial performance, strategic initiatives, and outlook for the future, offering investors and stakeholders a comprehensive understanding of Timken's operations and prospects. As a result of these announcements, the company's shares have moved 0.8% on the market, and are now trading at a price of $83.88. If you want to know more, read the company's complete 10-K report here.
