The Timken Company has reported its financial results for the 2017 first quarter, with sales at $703.8 million, a 2.9 percent increase from last year’s first quarter.
For the 2017 first quarter, net income was $38.2 million or $0.48 per diluted share compared to a net income of $65.9 million or $0.82 per diluted share in 2016. Last year’s quarter included CDSOA income of approximately $31 million after-tax. The change in net income reflects the impact of higher volume, improved manufacturing performance and lower restructuring charges, partially offset by unfavorable price/mix and a pension mark-to-market remeasurement charge in the quarter. Adjusted net income was $43.7 million or $0.55 per diluted share, compared with $39.9 million or $0.50 per diluted share for the 2016 first quarter.
"We had a solid start to the year, with stronger demand in sectors like industrial distribution and off-highway," said Richard G. Kyle, Timken president and CEO. "We responded well to the increase in demand, improved operating margins and generated solid cash flow, while continuing to advance our strategy across the globe."
Mobile Industries sales were $383 million, roughly flat compared with the first quarter last year. Earnings before interest and taxes (EBIT) in the quarter for Mobile Industries were $30.8 million or 8 percent of sales, compared with EBIT a year ago of $32 million or 8.4 percent of sales.
The company expects 2017 revenue to be up 5 to 6 percent over 2016 revenues. Mobile Industries’ sales are expected to increase 2 to 3 percent. Earnings per diluted share for the company in 2017 are expected to range from $2.15 to $2.25 for the full year on a GAAP basis, which does not include the impact of any potential mark-to-market pension remeasurement adjustments in the fourth quarter. Timken expects 2017 adjusted earnings per diluted share to range from $2.35 to $2.45.
"Encouraged by our start to the year, we are raising our revenue and earnings outlook, with the expectation that markets sustain their recent improvements," concluded Kyle. "We are confident in our ability to generate solid bottom-line growth in 2017."