Bearings and power transmission solutions manufacturer Timken reported its 2021 third quarter financial results on Nov. 1, showing continued major year-over-year sales gains that were down narrowly from Q2.
The North Canton, OH-based company posted total Q3 sales of $1.04 billion, up 16 percent year-over-year and a slight dip from Q2's $1.06 billion. Sales were up 13 percent compared to Timken's record same quarter in 2019. Timken saw Q3 organic sales grow 13 percent year-over-year, with double-digit organic growth in both Mobile and Process Solutions.
Q3 organic sales grew 10 percent in North America; 22 percent in EMEA; 27 percent in Latin America; and 7 percent in Asia-Pacific.
The large growth figures follow Q2's year-over-year sales spike of 32.3 percent, including a 26 percent jump in organic sales.
Timken's Q3 gross profit of $268 million improved 1.6 percent year-over-year, while operating profit of $124 million grew 4.5 percent.
The company's Q3 net profit of $88 million was flat (-0.8 percent).
By Timken business segment in Q3:
- Process Industries sales of $550 million increased 18.0 percent year-over-year, driven by organic growth across most sectors, led by distribution and general industrial, as well as higher pricing and favorable currency translation, partially offset by lower revenue in automotive.
- Mobile Industries sales of $487 million increased 13.7 percent year-over-year, driven by higher shipments in the off-highway and heavy truck sectors, higher pricing and favorable currency translation, partially offset by lower revenue in automotive.
Looking forward, Timken now expects Q4 revenue to be seasonally down from Q3, including fewer shipping days than Q3 and factoring in supply chain and customer disruptions that are expected to persist.
“We expect operating conditions through the rest of the year to be similar to the third quarter, with the benefits of strong demand being largely offset by inflation and higher costs to serve customers,” said Richard Kyle, Timken president and CEO. “As we look out to 2022, we are planning for the robust demand environment to continue, with supply chain issues persisting through at least the early part of the year. We expect to offset these headwinds with significant price realization and operational excellence initiatives, and we are well-positioned to deliver higher levels of performance in 2022.”
