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Timken Co. (TKR)

- NYSE
  • Oct. 16, 2014, 3:17 PM
    • Timken (TKR -0.2%), Regal Beloit (RBC +0.9%) and Altra Industrial Motion (AIMC +0.6%) have made it to the second round of bidding in the auction for Emerson Electric's (EMR +2%) power transmission solutions business, Reuters reports.
    • P-E firms Warburg Pincus and Onex also are said to be in the running for the unit, which is expected to fetch $1.2B-$1.6B in a sale.
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  • Oct. 1, 2014, 2:00 PM
    • Activist investor Relational Investors "plans to wind down its operations and dissolve its current funds by the end of next year," the WSJ reports. A new fund with the same name is expected to be be eventually launched, but founders Ralph Whitworth and David Batchelder "will cede day-to-day control."
    • The report comes after Whitworth took a leave of absence in July to focus on his health.  Relational has $6B in assets under management.
    • Many of the companies Relational holds positions in have added to their Wedenesday losses following the report: MHR -6.8%. CLH -5.9%. MTW -4.3%. SPW -3.7%. BEAV -3.5%. TKR -3%. HOLX -2.8%. PMCS -3.6%.
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  • Oct. 24, 2013, 11:47 AM
    • Timken (TKR -10.6%) falls hard after missing estimates with its Q3 report.
    • Weak end market demand contributed to a 7% Y/Y decline in revenues, while "lower volume and manufacturing utilization as well as unfavorable sales mix" caused net income to fall 35% from Q3 2012.
    • "On a macro basis, economic growth across the world has been much slower than we and our customers envisioned, and our third-quarter results were below our expectations," CEO James Griffith says.
    • Revenue growth by segment: Mobile Industries, -12%; Process Industries, -1%; Aerospace, -9%; Steel, -7%.
    • FY13 outlook: EPS of $2.70-2.90 (versus previous guidance of $3.30-3.60) on a 13% Y/Y decline in revenue (versus previous guidance of a 10% decline). Consensus is $3.62/share. (PR)
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  • Sep. 6, 2013, 8:58 AM
    • Timken (TKR) +4.5% premarket on its plan to split into two publicly traded companies, separating its steel business from its bearings and power transmission business through a spinoff.
    • The move is a victory for activists including Relational Investors; shares have climbed more than 50% since its involvement are poised to open at an all-time high.
    • KeyBanc raises its target price on Buy-rated TKR to $70 from $66, expecting investors to respond favorably after months of fighting; with a decision now made, the uncertainty around the company is gone.
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  • Sep. 5, 2013, 5:39 PM
    • After-hours top gainers, as of 5:15 p.m.: ZQK +13.4%. BLOX +13.2%. OFG +5.9%. AMBA +5.2%. TKR +5.1%.
    • After-hours top losers: NES -14.7%. ICH -8.4%. SWHC -5.0%. DRD -4.6%. BPL -3.7%.
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  • Sep. 5, 2013, 4:19 PM
    • Timken (TKR) announces plans to separate its steel business from its bearings and power transmission business through a spinoff, creating two publicly traded companies
    • The spinoff is expected to be completed within 12 months.
    • Ward J. Timken, Jr. will serve as chairman and CEO of the new steel company with estimated annual revenue of approximately $1.7B.
    • Richard G. Kyle will become president and CEO of the global bearings and power transmission business, with estimated annual revenue of approximately $3.4B.
    • Shares +6.3% AH.
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  • Aug. 5, 2013, 1:46 PM
    • Shares of Timken (TKR +1.2%) move higher midday after Relational Investors ups its stake in the company to 7.9% from 6.9% (13-D/A)
    • The SEC filing indicates that Relational has "met with members of [TKR's] special committee and representatives of Goldman Sachs." The activist fund is apparently confident that the company will decide to split its steel and bearings businesses.
    • See our previous coverage of the Timken/ Relational/ CalSTRS saga.
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  • Jul. 25, 2013, 3:36 PM
    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)
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  • Jul. 8, 2013, 1:51 PM
    Timken (TKR -1.9%) slips today after hitting a new 52-week high last week. Bank of America (Buy) cuts its price target on the shares to $65 from $68 noting that although there is likely "further embedded value [on] a high probability of a split up … forecasts for a sharp H2 rebound need to come down in light of sluggish top-line momentum."
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  • Jul. 5, 2013, 11:24 AM
    Shares of Timken (TKR +2.2%) hit a new 52-week high and are now up some 26% YTD as the company mulls a spinoff of its steel business. Meanwhile, the stock's performance helped fuel a ~25% gain for activist fund Relational Investors which has spearheaded the push for the split.
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  • May 7, 2013, 11:03 AM
    53% of voting shareholders supported CalSTRS and Relational Investors' proposal to spinoff Timken's (TKR +2.8%) steel business, an idea the company has repeatedly criticized for undervaluing synergies and being generally "misguided" (I, II, III). The proposal received the support of proxy advisory firm Glass Lewis & Co. last month and many believe the combined market cap of the two separate firms (bearings and steel) would be greater than that of the conglomerate. The proposal is non-binding and TKR says it will "evaluate" shareholders' views and "take steps" within 45 days. All 12 board members were re-elected.
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  • Nov. 28, 2012, 5:42 PM
    After-hours top gainers, as of 5:15 p.m.: BLOX +17.2%. SMTC +7.6%. GES +5.2%. ARQL +4.7%. WDAY +3.8%
    After-hours top losers: IDIX -14.7%. LZB -13.3%. TKR -10.4%. ARO -7.2%. VECO -7.1%
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  • Apr. 25, 2012, 2:40 PM
    Specialty steel manufacturer Timken (TKR +7.4%) gains after its Q1 beats across the board on double-digit growth in earnings and revenue. The company posted solid profit from all major segments, and raises its FY12 guidance to a range of $6.10 - $6.40 per share, with sales estimates rising 7% - 10%.
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  • Jan. 27, 2012, 1:03 PM
    Timken (TKR +4%) rises as its Q4 earnings beat on both EPS and revenue. Profits jumped 21% on sales strength in its industrial supply business, as key buyers in automotive, construction and industrial equipment sectors ramped up orders. One of its key contributors was China, as the government made heavy investments infrastructure projects over the period.
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  • Aug. 31, 2011, 10:54 AM
    Timken (TKR +7.4%) acquires Drives LLC, a maker of highly engineered drive chains and augers, for $92m in cash, furthering its efforts to build up its power-transmission line of business.
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  • May 27, 2011, 12:39 PM
    Timken (TKR +3.1%) gaining after announcing that it will acquire the assets of Philadelphia Gear for $200M. It's part of an effort by Timken to target greater penetration into the growing energy and infrastructure sectors. (PR)
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Company Description
The Timken Co manufactures mechanical components. The Company along with its subsidiaries engineers, manufactures and markets bearings, transmissions, gearboxes, chain and related products and offers power system rebuild and repair services.