The Timken Company has reported financial results for the 2017 fourth quarter, with sales up by 18.8 percent to $778 million compared to the fourth quarter of 2016. This was primarily due to organic growth across most end-market sectors led by off-highway and industrial distribution, as well as the benefit of acquisitions and currency.
The company reported a net income of $29.2 million or $0.37 per diluted share compared to the prior year’s fourth quarter results of a net loss of $(6.9) million or $(0.09) per basic share.
"Our strong fourth-quarter results capped an excellent 2017 for The Timken Company," said Timken President and CEO Richard G. Kyle. "We posted solid revenue growth each quarter, responded well to our customers' increased demand for Timken products and services and delivered significantly improved financial results. We advanced our strategy across all fronts, and we move into 2018 a stronger company well prepared to capitalize on the expected continued growth in our end markets."
For the 2017 full year, sales increased 12.5 percent to $3 billion. The increase was driven by organic growth across most end-market sectors led by off-highway, industrial distribution and heavy truck, and the benefit of acquisitions and currency, partially offset by lower demand in the rail sector.
Net income was $203.4 million or $2.58 per diluted share, compared to the 2016 year net income of $140.8 million or $1.78 per diluted share. The year-over-year increase in net year reflects improved performance across the business, as well as lower pension-related and impairment and restructuring charges, and a lower income tax rate.
Adjusted net income from for the 2017 full year was $207.5 million or $2.63 per diluted share compared with $169 million or $2.13 per diluted share in 2016.
Timken expects 2018 revenue to be up approximately 9 to 10 percent in total. This includes expected organic growth of 5 to 6 percent plus the benefit of acquisitions made during 2017 and favorable currency.
"We enter 2018 with broad strength across our end markets," added Kyle. "We will continue to focus on serving our customers, developing innovative product solutions, operating with excellence and building a stronger Timken Company. We expect our execution combined with robust markets will result in another year of strong revenue and earnings growth with margin expansion."