The Timken Company reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $1,126.8 million, down 1.4% from $1,142.7 million in the prior year. For the nine months, net sales decreased by 4.9% to $3,499.4 million from $3,677.8 million. The decline in revenue was attributed to lower organic sales, which fell by $33 million in the third quarter and $247 million year-to-date, partially offset by favorable pricing and contributions from acquisitions.
Operating income for the third quarter was $146.3 million, a decrease of 2.2% from $149.6 million in 2023, while for the nine months, it fell 7.4% to $498.1 million from $537.9 million. Net income for the third quarter was $87.6 million, down 3.6% from $90.9 million, and for the nine months, it decreased by 13.3% to $300.2 million from $346.1 million. Basic earnings per share for the third quarter were $1.17, down from $1.24, and for the nine months, they fell to $4.01 from $4.68.
The company’s strategic developments included the acquisition of CGI, Inc. on September 9, 2024, for $167.4 million, aimed at enhancing its industrial motion product portfolio. This acquisition is part of a broader strategy that saw Timken complete six acquisitions in 2023, totaling $641.4 million, which contributed to increased goodwill and intangible assets.
Timken's total assets increased to $6,767.4 million as of September 30, 2024, from $6,541.7 million at the end of 2023, driven by acquisitions and higher accounts receivable. However, total current liabilities decreased significantly to $910.3 million from $1,471.3 million, while long-term debt rose to $2,189.2 million from $1,790.3 million, reflecting increased borrowing to support acquisitions.
The company also reported a comprehensive income of $163.1 million for the third quarter, a significant increase from $26.4 million in the same period last year, and a year-to-date comprehensive income of $293.0 million, up from $277.2 million. Despite these strategic moves, Timken anticipates a continued decline in revenue and net income for the full year 2024, primarily due to lower demand and unfavorable currency impacts.
About TIMKEN CO
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