Canton steel and bearing manufacturer Timken Co. on Thursday lowered its earnings outlook for 2012 as part of a quarterly financial report.
The revised forecast led to a 16.3 percent drop in shares as the stock closed down $6.88 to $35.21.
Timken President and Chief Executive James W. Griffith said in a prepared statement that in the second quarter, “it became clear that the weakening global economy was reducing demand for our products and services.”
“We adjusted our business to the economic realities and are confident Timken is positioned to perform well through the economic cycle,” he added.
Timken reported income of $183.6 million in the second quarter, up 51 percent from the $121.5 million in the second quarter of 2011. Sales were $1.3 billion in the second quarter, a 1 percent increase over the corresponding period a year ago. On a per-share basis, income for this year’s second quarter was $1.86, compared with $1.22 a year ago.
The company issued a revised per-share earnings outlook for the year of $5 to $5.30. That’s down from the company’s projection of $6.10 to $6.40 per share in April, when Timken reported its best quarter ever. The company said two significant items were included in the quarter’s results: income of $69 million in what was called Continued Dumping and Subsidy Offset Act receipts and $17.7 million in charges related to the closing of a bearing production plant in St. Thomas, Ontario, Canada.
Locally, the company broke ground in April on a $225 million expansion of the Faircrest mill, south of Canton, that will take about two years to complete. The mill makes specialty alloy steel bars.
Katie Byard can be reached at 330-996-3781 or email@example.com.