- Timken (TKR -5.3%) reported Q1 revenue decline of 5.75% Y/Y to $923.4M, driven by lower demand in most end markets and unfavorable currency.
- Q1 Gross margin declined by 68 bps to 30.2%; and operating margin declined by 212 bps to 13.2%.
- Adj. EBITDA was $177M (-12.6% Y/Y); and margin declined by 150 bps to 19.2%.
- Mobile Industries sales were $466.7M (-6.7% Y/Y), decline was due to lower shipments in the off-highway, automotive and heavy truck sectors.
- Process Industries sales were $456.7M (-4.8% Y/Y), decrease was driven by lower revenue in the industrial distribution and general and heavy industrial sectors.
- Net cash provided by operating activities was $56.2M, compared to $52.3M a year ago; and Free cash flow of $24.4M
- Company drew $350M on its revolving credit facility to enhance financial flexibility during this period of uncertainty due to COVID-19 pandemic. As of April 3, 2020, company had over $700M of cash on hand.
- Company withdrew its 2020 financial guidance due to the evolving impact of COVID-19 on the economy; and is planning for revenue to decline significantly in 2Q20 compared to the year-ago period.
- Previously: Timken EPS beats by $0.02, beats on revenue (May 1)