Bearings and power transmission solutions manufacturer Timken reported its 2021 fourth quarter and full-year financial results on Feb. 3, showing continued major year-over-year sales gains that were a narrow deceleration from Q3.
The North Canton, OH-based company posted total Q4 sales of $1.01 billion, up 13 percent year-over-year, with organic sales likewise up 13 percent. The overall sales figure trailed Q3's $1.06 billion when sales grew 16 percent. Compared to Q4 2019, sales grew 10 percent. The company said Q4's sales increase was driven mostly by organic growth across most end markets, led by industrial distribution and off-highway, and the impact of higher pricing. Both Timken's business segments — Process Industries and Mobile Industries — saw double-digit sales growth year-over-year.
Timken's Q4 gross profit dipped 1.6 percent year-over-year, while operating profit of $86 million fell 12.9 percent. The company's Q4 net profit of $66.7 million increased 20.6 percent, and trailed Q3's $88 million.
For the full year, Timken's 2021 total sales were $4.13 billion, up 17.6 percent year-over-year. Operating profit of $513 million topped 2020's $455 million, while net profit of $381.5 million bested 2020's $292 million.
“Timken delivered record 2021 revenue and earnings per share despite widespread supply chain issues and rapid inflation, particularly in materials and logistics,” said Richard Kyle, Timken president and CEO. “We posted strong revenue growth in the fourth quarter as we responded well to the robust demand, but unfavorable price-cost continued to impact our profitability. Our pricing and cost mitigation efforts are progressing, and we will achieve a step-up in price realization in 2022.”
By Timken business segment in Q4:
- Process Industries sales of $528 million increased 15.2 percent, with organic sales up 14.5 percent. The company said distribution and general industrial posted the largest gains, while linear motion posted the strongest gain among non-bearing product lines.
- Mobile Industries sales of $480 million increased 10.6 percent year-over-year, with organic sales up 10.8 percent. The company said off-highway was up significantly, while aerospace, rail and heavy-truck also improved and automotive was relatively flat.
Looking forward, Timken said it expects 2022 full-year revenue to be up about 10 percent vs. 2021.
“We anticipate strong revenue and earnings growth in 2022, driven by continued robust industrial demand, price realization and our outgrowth initiatives,” said Kyle. “The operating environment remains dynamic, with a higher degree of uncertainty than normal. We’re planning for the supply chain challenges and inflationary pressures we experienced in the second half of 2021 to largely persist through 2022; however, we expect our pricing and efficiency improvements to have a much greater impact on results. Timken is well-positioned to deliver record revenue and earnings again in 2022, and we remain focused on serving customers, driving our profitable growth strategy and advancing as a global industrial leader.”
