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Sep 30, 2021
Timken Q3 2021 Earnings Report
Timken's third-quarter performance was impacted by supply chain disruptions and inflation, but the company achieved double-digit revenue growth due to strong market demand.
Key Takeaways
Timken reported third-quarter sales of $1.04 billion, a 16% increase from the previous year. Earnings per diluted share were $1.14 on a GAAP basis, and adjusted earnings per diluted share were $1.18. The company expects a robust demand environment and significant price realization in 2022.
Sales increased by 16 percent year-over-year to $1.04 billion.
GAAP earnings per diluted share were $1.14, while adjusted earnings per diluted share reached $1.18.
Net cash from operations totaled $105.8 million, with free cash flow at $62.7 million.
The company anticipates a continued strong demand environment and significant price realization in 2022.
Forward Guidance
Timken anticipates operating conditions in the fourth quarter to mirror those of the third quarter, where strong demand is largely offset by inflation and increased customer service costs. Looking ahead to 2022, the company expects robust demand to persist, with supply chain challenges continuing into the early part of the year. They plan to counteract these headwinds through significant price adjustments and operational improvements, positioning them to achieve enhanced performance levels in 2022.
Positive Outlook
- Expects robust demand environment to continue into 2022.
- Planning for significant price realization in 2022.
- Operational excellence initiatives expected to offset headwinds.
- Well positioned to deliver higher levels of performance in 2022.
- Focused on winning new business and advancing strategic initiatives.
Challenges Ahead
- Operating conditions through the rest of the year to be similar to the third quarter.
- Benefits of strong demand being largely offset by inflation and higher costs to serve customers.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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