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Dec 31, 2020
Timken Q4 2020 Earnings Report
Reported Q4 2020 results, with revenue slightly down but EPS exceeding expectations, driven by cost reduction initiatives and strong cash flow.
Key Takeaways
Timken reported fourth-quarter sales of $892 million, a slight decrease of less than one percent from the previous year. GAAP earnings per diluted share were $0.69, while adjusted EPS reached $0.84. The company generated strong full-year net operating cash flow of $578 million and free cash flow of $456 million. Timken expects strong revenue growth in 2021 and forecasts earnings per diluted share between $4.45 and $4.85 on a GAAP basis, or $4.70 to $5.10 adjusted.
Fourth-quarter sales reached $892 million, a decrease of less than one percent year-over-year.
Fourth-quarter GAAP earnings per diluted share were $0.69, with adjusted EPS at $0.84.
Full-year 2020 net operating cash flow was $578 million, and free cash flow was $456 million.
The company anticipates strong revenue growth in 2021 and projects GAAP earnings per diluted share of $4.45-$4.85, with adjusted EPS between $4.70 and $5.10.
Timken
Timken
Timken Revenue by Segment
Revenue by Segment
Engineered Bearings Revenue
CapyFin.comIndustrial Motion Revenue
CapyFin.com Forward Guidance
Timken anticipates 2021 earnings per diluted share to range from $4.45 to $4.85 for the full year on a GAAP basis. Excluding special items, the company expects 2021 adjusted earnings per diluted share ranging from $4.70 to $5.10, which at the midpoint is up almost 20 percent versus 2020. At the midpoint of the outlook, the company expects 2021 revenue to be up approximately 12 percent in total versus 2020.
Positive Outlook
- Improving industrial markets
- An active pipeline of new business wins
- Continued outgrowth in sectors like renewable energy and marine
- Seeing sequential strengthening in our business to start the year
- A sustainable industrial expansion is underway
Challenges Ahead
- Some near-term uncertainty related to the COVID-19 pandemic
- Supply chain challenges related to the COVID-19 pandemic
Revenue & Expenses
Visualization of income flow from segment revenue to net income