Released on November 1, 2023, The Timken Co (TKR, Financial) announced its third-quarter 2023 earnings. The company reported sales of $1.14 billion, marking a 0.6% increase from the same period last year. This growth was driven by the benefit of acquisitions, higher pricing, and favorable foreign currency translation, partially offset by lower volume.
Financial Highlights
The Timken Co (TKR, Financial) posted a net income of $87.9 million or $1.23 per diluted share in Q3 2023, compared to $87.0 million or $1.18 per diluted share in Q3 2022. The company's adjusted net income for the quarter was $111.2 million or $1.55 per diluted share, compared to $120.5 million or $1.63 per diluted share in the same period last year. Adjusted EBITDA for the quarter was $215.8 million or 18.9% of sales.
Net cash from operations for the quarter was $194.3 million, and free cash flow was $150.7 million. The company repurchased 775 thousand shares of company stock, returning $87.3 million of cash to shareholders through dividends and share repurchases in the third quarter.
Segment Performance
The Engineered Bearings segment reported sales of $775.6 million, a decrease of 0.5% from the same period a year ago. The decrease was driven by lower volume, partially offset by the benefit of acquisitions and higher pricing. The Industrial Motion segment reported sales of $367.1 million, an increase of 2.9% compared with the same period a year ago. This increase was driven by the benefit of acquisitions, higher pricing, and favorable foreign currency translation, partially offset by lower volume.
2023 Outlook
The Timken Co (TKR, Financial) updated its 2023 outlook, forecasting full-year earnings per diluted share to be in the range of $5.60 to $5.70 and adjusted earnings per diluted share in the range of $6.85 to $6.95. The company is now planning for 2023 revenue to be up 5 to 5.5 percent in total from 2022.
CEO Richard G. Kyle commented on the company's performance, stating,
Timken posted solid results in the quarter despite challenging business conditions across several sectors and geographies. We executed well across the enterprise, as we expanded adjusted EBITDA margins in both segments and generated strong free cash flow."
Explore the complete 8-K earnings release (here) from The Timken Co for further details.
