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Thursday, Jul 25
Timken (TKR -4.9%) tumbles after Q2 earnings miss estimates. A 16% Y/Y drop in revenue is...
Timken (TKR -4.9%) tumbles after Q2 earnings miss estimates. A 16% Y/Y drop in revenue is attributed to lower demand as well as "the impact of the company's market strategy in the light-vehicle sector." CEO James Griffith says TKR did well to maintain double-digit operating margins in a weak market but notes that the "outlook for the year now reflects a more modest market recovery." Revenue growth by segment: Mobile Industries, -12%; Process Industries, -23%; Aerospace, -6%; Steel, -29%. FY13 outlook: $3.30-3.60/ share on -10% revenue growth. Consensus is $3.97/ share. On the call, management declines to discuss its ongoing evaluation of a steel business spinoff. (PR, CC transcript)