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Jun 30, 2020
Timken Q2 2020 Earnings Report
Timken reported a decrease in sales due to lower demand caused by COVID-19, but earnings per share and cash flow remained solid due to cost reduction actions.
Key Takeaways
Timken's second-quarter sales decreased by 19.7% to $803.5 million due to lower demand caused by COVID-19. However, the company's earnings per diluted share were $0.82 on a GAAP basis, with adjusted EPS of $1.02. The company generated strong cash from operations of $247.4 million and free cash flow of $222.7 million. Cost reduction actions across the enterprise helped maintain solid operating margins.
Second-quarter sales were $804 million, down 19.7 percent year-over-year.
GAAP earnings per diluted share were $0.82, and adjusted EPS was $1.02.
Strong cash from operations of $247 million and free cash flow of $223 million were generated.
Cost reduction actions delivered solid operating margins.
Timken
Timken
Forward Guidance
Given the continued uncertainty surrounding COVID-19, the company is not providing full year 2020 sales and earnings guidance at this time.