2023 May 1st Week WBM News Recommendation- Timken Reports Record First-Quarter 2023 Results; Raises Full-Year Outlook

Record sales of $1.26 billion, up 12 percent in total and 11 percent organically from last year

Record first-quarter EPS of $1.67; with all-time record quarterly adjusted EPS of $2.09

Net income margin of 10 percent; adjusted EBITDA margin of 21 percent

Raises 2023 outlook; now expects 2023 EPS of $5.90-$6.40, with adjusted EPS of $7.00-$7.50

The Timken Company (NYSE: TKR; www.timken.com), a global leader in engineered bearings and industrial motion products, today reported first-quarter 2023 sales of $1.26 billion, up 12.3 percent from the same period a year ago. The increase was driven by strong organic growth in both the Engineered Bearings and Industrial Motion segments, and the favorable impact of acquisitions (net of divestitures), partially offset by unfavorable foreign currency translation. Organically, first-quarter sales were up 10.9 percent versus the prior year.

Timken posted net income in the first quarter of $122.3 million or a record $1.67 per diluted share. This compares to net income of $118.2 million or $1.56 per diluted share for the same period a year ago.

Excluding special items (detailed in the attached tables), adjusted net income in the first quarter was $153.5 million or $2.09 per diluted share, an all-time record for any quarter. This compares to adjusted net income of $129.7 million or $1.72 per diluted share for the same period in 2022. Adjusted EBITDA in the quarter was $265.5 million or 21.0 percent of sales, compared with $225.1 million or 20.0 percent of sales in the first quarter of last year.

Net cash from operations for the quarter was $78.6 million and free cash flow was $36.9 million. During the quarter, the company returned $77.6 million of cash to shareholders through dividends and the repurchase of 670 thousand shares of company stock. In addition, the company acquired the assets of American Roller Bearing Co. at the end of January. Also, in early April, Timken completed its previously announced acquisition of Nadella Group, which expands and scales the company's leading linear motion product portfolio.

First-Quarter 2023 Segment Results

هندسي محامل مبيعات ٪24900.7 مليون زيادة 16.6 في المئة من نفس الفترة أ سنة قبل الزيادة كان مدفوعا من قبل عضوي نمو عبر معظم القطاعات أدى بواسطة متجدد طاقة٪ 2c التوزيع و السكك الحديدية ٪ 2c و ال مواتية تأثير من عمليات الاستحواذ (صافي)٪ 2c جزئيا تعويض بواسطة غير مواتية أجنبية عملة ترجمة.

EBITDA for the ربع was ٪242٪7b٪7b1٪7d٪7d5.0 million or 22.8 percent of sales٪2c comparted with EBITDA of ٪24168.3 مليون أو 21.8 percent of sales for the same period a year ago. ال زيادة in EBITDA كان مدفوع بشكل أساسي بواسطة التأثير من مواتية السعر٪2fmix٪2c أعلى حجم و أقل مواد ٪26 لوجستيات تكاليف٪2C as well as the benefit of acquisitions٪2c جزئيا إزاحة by أعلى تصنيع و SG٪26A التكاليف و ال غير مواتية تأثير من العملة.

باستثناء خاص العناصر٪ 2c المعدلة EBITDA في الربع كان ٪ 24203.8 مليون أو 22.6 في المائة من المبيعات٪ 2c مقارنة مع ٪ 24173.9 مليون أو 22.5 في المائة من المبيعات في الربع الأول من الماضي السنة.

صناعي حركة مبيعات من ٪ 24362.1 مليون زيادة 2.8 في المئة مقارنة مع نفس الفترة أ سنة قبل الزيادة كان مدفوعا من قبل عضوي نمو عبر معظم منصات أدى بواسطة تلقائي تزييت أنظمة٪ 2c جزئيا تعويض بواسطة غير موات أجنبي عملة ترجمة و غير مواتية تأثير من تصفية (صافي).

EBITDA for the quarter was $48.2 million or 13.3 percent of sales, compared with EBITDA of $62.4 million or 17.7 percent of sales for the same period a year ago. The decrease in EBITDA was driven primarily by a goodwill impairment charge in the current period related to the recent change in operating segments, as well as higher SG&A and manufacturing costs, partially offset by the impact of favorable price/mix and higher volume.

Excluding special items, adjusted EBITDA in the quarter was $76.9 million or 21.2 percent of sales, compared with $63.4 million or 18.0 percent of sales in the first quarter of last year.

2023 Outlook

Timken is متزايد لها 2023 توقعات٪ 2c مع عام كامل أرباح لكل مخفف سهم الآن متوقع إلى كن في ال النطاق من ٪ 245.90 إلى ٪ 246.40 و معدلة الأرباح لكل مخفف حصة في النطاق من من 247.٪ 7b٪ 7b٪ 7b7٪ 7d٪ 7d إلى ٪ 247.50. The الشركة هو الآن التخطيط ل 2023 الإيرادات إلى كن أعلى تقريبا 9.5 في الإجمالي عند نقطة الوسط من 2022٪ 2c an زيادة من لها السابقة التوقعات من 6 في المئة النمو عند ال نقطه الوسط.

"Timken is raising its full-year guidance to reflect the company's strong first-quarter performance, the impact of the Nadella acquisition and an improved outlook for the rest of the year," said Kyle. "We now expect operating margins to increase in 2023, reflecting favorable price-cost and better operational execution. While uncertainty remains elevated for the second half, our backlog is high and customer demand is strong."

كايل تابع٪ 2c ٪ 22 نحن واثقون في لدينا قدرتنا إلى تحقيق أعلى أداء في 2023 و ما بعد٪ 2c as نحن نواصل إلى تنفيذ لدينا استراتيجية إلى تقدم Timken as a متنوع صناعي قائد.٪ 22

Timken will host a conference call today at 11 a.m. Eastern Time to review its financial results. Presentation materials will be available online in advance of the call for interested investors and securities analysts.