Earnings Roundup: Timken, NOV, RBC Bearings

The numbers were highlighted by a 38 percent year-over-year drop in sales at National Oilwell Varco and a net loss of $57 million and an 8 percent drop in Timken sales. Meanwhile, RBC shared details about restructuring in its roller bearings segment.

Id 27741 Timken2

We're in the midst of another quarterly earnings reporting period, with publicly-traded companies sharing their latest fiscal performance numbers.

A handful of prominent industrial manufacturers reported their figures over the past few days. Here's the key numbers for Timken, National Oilwell Varco and RBC Bearings: 

Timken

Canton, OH-based bearings maker Timken reported its 2016 fourth quarter and full year fiscals on Thursday. The company posted Q4 sales of $655 million, down 8.3 percent year-over-year. Profit of $24.1 million compared with a loss of $35.7 million a year earlier.

By segment, Timken's Mobile Industries unit had Q4 sales of $342.3 million, down 10 percent year-over-year. Timken's Process Industries unit had Q4 sales of $312.5 million, down 6.5 percent year-over-year.

For the full year, Timken's 2016 total sales of $2.7 billion were down 7 percent from 2015, primarily due to weaker demand across industrial end markets and currency headwinds, partially offset by automotive growth and gains from acquisitions and divestitures. Total 2016 profit of $152.6 million compared with a loss of $70.8 million in 2015.

"We performed well in the fourth quarter, giving us a solid finish to the year," said Richard G. Kyle, Timken president and CEO. "Despite the difficult market environment, we delivered historically strong earnings and cash flow in 2016, which is evidence of the structural improvements we've made to our business. We advanced our strategy on all fronts and continued to position the company for profitable growth and shareholder value creation over the long term."

Timken said it expects 2017 full year sales to be relatively flat compared with 2016, with Mobile Industries sales projected to decline 4 to 5 percent.

National Oilwell Varco

Houston-based National Oilwell Varco reported its 2016 Q4 and full year fiscals on Monday. The company posted Q4 total sales of $1.69 billion, down 38 percent year-over-year and up 3 percent sequentially from Q3. Meanwhile, NOV took a net loss $57 million.

For the full year, NOV total 2016 sales of $7.25 billion, a 50.9 percent decrease from 2015. The company took a net loss of $2.4 billion, following a $767 million net loss in 2015.

By business segment:

  • Rig Systems Q4 sales of $426 million were down 58 percent year-over-year and up 9 percent from Q3. Operating loss was $81 million.
  • Rig Aftermarket Q4 sales of $339 million were down 40 percent year-over-year and up 5 percent from Q3. Operating loss was $26 million.
  • Wellbore Technologies Q4 sales of $531 million were down 30 percent year-over-year and up 1 percent from Q3. Operating loss was $439 million.
  • Completion and Production Solutions Q4 sales of $602 million were down 19 percent year-over-year and up 11 percent from Q3. Operating loss was $134 million. 

"We are very encouraged by our results, as our fourth quarter consolidated revenues increased for the first time since the downturn began in late 2014," commented Clay Williams, NOV chairman, president and CEO. "Three of our four reporting segments generated higher sequential revenues in the fourth quarter, and overall Adjusted EBITDA margins increased 190 basis points on strong incremental leverage. Our efforts to reduce costs and improve efficiencies through the past two years of this difficult downturn are driving improving performance, and I am grateful for the continued hard work and dedication of our employees."

RBC Bearings

Oxford, CT-based RBC Bearings reported its 2017 third quarter fiscals on Wednesday. The company posted Q3 sales of $146.7 million, up 1.7 percent year-over-year. Profit of $12.8 million declined 25.1 percent, while operating profit of $20.5 million declined 24.1 percent.

By segment, RBC's sales in aerospace markets increased 1.2 percent year-over-year, while industrial markets increased 2.7 percent.

During the quarter, RBC reached a decision to integrate and restructure its industrial manufacturing operation in South Carolina. The company will exit a few smaller product offerings and consolidate two manufacturing facilities into one. As a result, RBC recorded a charge of $7.1 million attributable to its roller bearings segment. The company says the restructuring will better align its manufacturing capacity and market focus.

"We were able to drive solid financial performance in what is traditionally our slowest seasonal fiscal quarter," said Dr. Michael J. Hartnett, RBC chairman and CEO. "Our restructuring activities are driven by a strategy to achieve better alignment and rationalization of our manufacturing resources to more efficiently support a period of increasing industrial demand."

Year-to-date, RBC Bearings' nine-month 2017 nine-month sales of $455.2 million were up 4.6 percent year-over-year. Profit of $49 million is up 9 percent, while operating income of $79.3 million is up 8.6 percent.

 

Next week, NOW Inc./DistributionNOW (No. 12 on ID's Big 50 List) reports their quarterly fiscals on Wednesday, and MRC Global (No. 9 on Big 50) reports on Thursday.

  • 2/15: NOW Inc./DistributionNOW
  • 2/16: MRC Global

Check out our earnings roundup from 2/2 to see the latest fiscal numbers for Snap-on, Kennametal, SKF, Eaton and Ingersoll-Rand. 

Check out our earnings roundup from 1/31 to see the latest numbers for Honeywell, Atlas Copco and Air Products & Chemicals. See our earnings roundup from 1/26 to see the latest numbers for Stanley Black & Decker, Praxair, Rockwell Automation and Avnet.

More in Earnings