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Dec 31, 2019
Timken Q4 2019 Earnings Report
Timken's fourth-quarter earnings were reported, revealing sales of $896 million and GAAP EPS of $1.48.
Key Takeaways
Timken reported fourth-quarter sales of $896 million, a 1.5% decrease year-over-year, and GAAP earnings per diluted share of $1.48. The company's performance was impacted by lower demand in the Mobile Industries segment and unfavorable currency, offset by acquisitions and positive pricing. Net income for the quarter was $113.5 million, and free cash flow was $137.6 million.
Fourth-quarter sales were $896 million, down 1.5 percent from last year.
Fourth-quarter earnings per diluted share were $1.48 on a GAAP basis, with adjusted EPS of $0.84.
Net cash from operations for the quarter was $195.3 million, and free cash flow was $137.6 million.
The company expects 2020 revenue to be in the range of down 2 percent to up 2 percent, or roughly flat at the midpoint, versus 2019.
Timken
Timken
Forward Guidance
The company expects 2020 revenue to be in the range of down 2 percent to up 2 percent, or roughly flat at the midpoint, versus 2019. Timken anticipates 2020 earnings per diluted share to range from $4.00 to $4.40 for the full year on a GAAP basis, and adjusted earnings per diluted share ranging from $4.25 to $4.65.
Positive Outlook
- The company expects 2020 revenue to be in the range of down 2 percent to up 2 percent, or roughly flat at the midpoint, versus 2019.
- Includes the benefit of acquisitions made during 2019.
- Timken anticipates 2020 earnings per diluted share to range from $4.00 to $4.40 for the full year on a GAAP basis.
- Excluding special items, the company expects 2020 adjusted earnings per diluted share ranging from $4.25 to $4.65.
- Timken plans to generate net cash from operations of approximately $585 million and free cash flow of $425 million at the midpoint in 2020.
Challenges Ahead
- Expected organic declines in Mobile Industries.
- Impact of currency.
- Soft industrial economic backdrop.
- Profitability to improve meaningfully from fourth-quarter levels.
- Remain focused on driving outgrowth, integrating recent acquisitions and advancing our operational excellence initiatives.