Earnings Roundup: Timken, Eaton, Kennametal, And Others

We're in the middle of quarterly earnings reporting season, and over the past few days a handful of well-known industrial manufacturers posted sales and profit numbers that coincide with the ongoing industrial recession.

Id 12176 Logosta

We're in the middle of quarterly reporting season for publicly-owned companies, and over the past few days a handful of well-known industrial manufacturers posted their quarterly earnings. Here's how five of them fared in their most recently-completed fiscal quarter.

Id 12161 Timken

North Canton, OH-based bearings and power transmission products provider Timken posted 2015 fourth quarter sales of $714.4 million, roughly 6 percent down from the same period last year. Organic sales were down 2 percent, which the company said reflects market demand declines in Process Industries. Timken took a net loss of $35.7 million in Q4, compared to a profit of $41.2 last year.

By segment:

  • Mobile Industries Q4 sales of $380.3 million were down roughly 2 percent YOY, with flat organic sales.
  • Process Industries sales of $334.1 million declined roughly 10 percent YOY, with organic sales down 6 percent.

For the full year 2015, Timken sales of $2.9 billion were down 7 percent from 2014, with organic sales down nearly 2 percent.

Id 12166 Eaton

Dublin, Ireland-based power management supplier Eaton posted fourth quarter sales of $5.1 billion, down 9 percent year-over-year, while profit of $534 million was down from $585 in the same period a year ago. Eaton, which has a U.S. headquarters in Cleveland, OH, said Q4 organic sales declined 4 percent year-over-year, reflecting weakness in most of its customer markets. Currency headwinds negatively impacted total sales by 5 percent.

By segment:

  • Hydraulics Q4 sales of $552 million were down 18 percent from a year ago, with organic sales down 12 percent.
  • Electrical Products sales of $1.7 billion were down 5 percent YOY, with organic sales down 1 percent.
  • Electrical Systems and Services sales of $1.5 billion were down 9 percent YOY, with organic sales down 5 percent.
  • Aerospace sales of $440 were down 4 percent YOY, with organic sales down 2 percent.
  • Vehicle sales of $841 million were down 13 percent YOY, with organic sales down 6 percent.

For the full year 2015, Eaton sales of $20.9 billion was 7.5 percent down from 2014, with organic sales down 2 percent.

Id 12171 Kennametale

Pittsburgh, PA-based wear-resistant industrial products maker Kennametal posted 2016 second quarter sales of $524 million, down 22 percent from the same period last year, and down 12 percent organically. The company says the decline was due to weakened end market demand, a negative 6 percent impact from currency headwinds, and a negative 4 percent impact from divestiture.

Kennametal took a net loss of $169.2 million, compared to a net loss of $344.0 million in Q4 last year. 

"We are clearly operating in an environment where some of our key end markets are under significant pressure," said Don Nolan, Kennametal president and CEO. "We continue to adjust our global operations to best manage through this challenging time. We are acting quickly in anticipation of continued headwinds in our fiscal year 2016."

By segment: 

  • Industrial Q4 sales of $311 were down 16 percent year-over-year, with organic sales down 9 percent.
  • Infrastructure sales of $213 million were down 30 percent YOY, with organic sales down 20 percent.

Kennametal revised its 2016 full year sales outlook, projecting a decline of 20 to 23 percent overall, with a 10 to 13 percent drop in organic sales. Its previous October guidance projected a 10 to 14 percent total sales decline, and a 6 to 10 percent organic decline.

Others

Swedish bearings makers SKF posted 2015 fourth quarter sales of $2.1 billion, down 1.5 percent from the same period last year, while profit of $49.9 million was down 51.4 percent. For the full year 2015, SKF sales of $8.9 billion were up 7.1 percent from 2014, while profit of $480 million declined 14.2 percent.

Power transmission components, drives, and conveying equipment maker Rexnord posted 2016 third quarter sales of $460 million, a 7 percent decrease over the same period a year ago, with organic sales down 4 percent. Profit of $24.3 million dwarfed Q3 2014's profit of $2.2 million. Process & Motion Control Q3 sales of $266 million were down 11.4 percent year-over-year, with organic sales down 9 percent. Water Management sales of $194 million were down slightly from last year's $198.2 million in the same period, while organic sales increased 2 percent.

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