Canton, Ohio-based bearings maker Timken reported its third quarter sales and earnings on Wednesday, showing considerable declines in sales and adjusted profit.
The company posted sales of $707.4 million, a 10 percent decrease from Q3 2014. Timken said currency headwinds accounted for half the decline, while the rest was primarily due to softened demand across industrial end markets.
Total profit for Q3 was $63.4 million, compared to a loss of $10.9 million last year. Last year's Q3 included a $118 million pre-tax charge for Timken's aerospace restructuring. Adjusted profit for Q3 was $46.7 million, down from last year's $70.0 million. Timken says the change reflects negative impacts of currency headwinds, lower volume, and unfavorable price/mix.
"We continue to experience downward pressure in several of our end markets, including agriculture, metals, mining, oil and gas, and broadly across the industrial distribution channel," Timken CEO Richard Kyle said. "End markets have declined more than expected and the timing of a recovery remains uncertain. As a result, we are accelerating our cost-reduction actions to return operating margins to our targeted ranges."
Timken's Mobile Industries segment sales were down approximately 7 percent, with organic sales down 1 percent. The company's Process Industries segment sales were down 14 percent, with organic sales down 9 percent.