The Timken Company reported a decline in financial performance for the fiscal year ending December 31, 2024, with net sales of $4.57 billion, a decrease of 4.1% from $4.77 billion in 2023. The company's net income also fell by 8.0% to $375.3 million, down from $408.0 million the previous year. This decline was attributed to lower demand in key markets such as China and Europe, unfavorable foreign currency exchange impacts, and increased manufacturing costs. Diluted earnings per share decreased to $4.99 from $5.47 in 2023.
In terms of operational changes, Timken made significant strategic moves, including the acquisition of CGI, Inc. for $167.1 million, which is expected to enhance its industrial motion product portfolio, particularly in medical robotics. The company also executed a CEO succession plan, appointing Tarak Mehta as the new president and CEO in September 2024. Additionally, Timken increased its quarterly dividend by 3%, marking its 410th consecutive quarterly dividend payment.
The company's operational metrics showed a mixed performance across its segments. The Engineered Bearings segment reported net sales of $3.03 billion, down 6.9% from the previous year, while the Industrial Motion segment saw a slight increase in sales to $1.54 billion, up 1.8%. The overall backlog of orders decreased to $2.02 billion from $2.28 billion in 2023, with approximately 92% of the backlog expected to be delivered within the next 12 months.
Looking ahead, Timken anticipates a challenging 2025, projecting revenue to decline between 4% and 1% compared to 2024, primarily due to continued unfavorable foreign currency impacts and lower demand in Europe. However, the company expects to generate higher cash from operating activities, driven by improved working capital performance and lower capital expenditures. Timken's focus remains on profitable growth through strategic acquisitions and operational excellence, aiming to navigate the competitive landscape effectively.
About TIMKEN CO
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