Summary of Operations and Other Comparative Data
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2003 |
2002 |
2001 |
2000 |
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| (Thousands of dollars, except per share data) |
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| Statements of Income |
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| Net sales: |
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| Automotive Bearings |
$ 1,396,104 |
$ 752,763 |
$ 642,943 |
$ 839,838(7) |
| Industrial Bearings |
1,498,832 |
971,534 |
990,365 |
923,477(7) |
| Total Bearings |
2,894,936 |
1,724,297 |
1,633,308 |
1,763,315 |
| Steel |
893,161 |
825,778 |
813,870 |
879,693 |
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| Total net sales
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3,788,097 |
2,550,075 |
2,447,178 |
2,643,008 |
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| Cost of products sold |
3,156,475 |
2,080,498 |
2,046,458 |
2,142,135 |
| Selling, administrative and general expenses |
514,221 |
358,866 |
363,683 |
367,499 |
| Impairment and restructuring charges |
19,154 |
32,143 |
54,689 |
27,754 |
| Operating income (loss) |
98,247 |
78,568 |
(17,652) |
105,620 |
| Other income (expense) - net |
9,833 |
36,814 |
22,061 |
(6,580) |
| Earnings before interest and taxes (EBIT)(1) |
108,080 |
115,382 |
4,409 |
99,040 |
| Interest expense |
48,401 |
31,540 |
33,401 |
31,922 |
| Income (loss) before income taxes |
60,802 |
85,518 |
(26,883) |
70,597 |
| Provision (credit) for income taxes |
24,321 |
34,067 |
14,783 |
24,709 |
Income (loss) before cumulative effect of
accounting changes |
36,481 |
51,451 |
(41,666) |
45,888 |
| Net income (loss) |
$ 36,481 |
$ 38,749 |
$ (41,666) |
$ 45,888 |
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| Balance Sheets |
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| Inventory |
$ 695,946 |
$ 488,923 |
$ 429,231 |
$ 489,549 |
| Current assets |
1,377,105 |
968,292 |
828,380 |
898,542 |
| Working capital |
322,549 |
334,222 |
187,224 |
311,090 |
| Property, plant and equipment – net |
1,608,594 |
1,226,244 |
1,305,345 |
1,363,772 |
| Total assets |
3,689,789 |
2,748,356 |
2,533,084 |
2,564,105 |
| Total debt: |
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| Commercial paper |
- |
8,999 |
1,962 |
76,930 |
| Short-term debt |
114,469 |
78,354 |
84,468 |
105,519 |
| Current portion of long-term debt |
6,725 |
23,781 |
42,434 |
26,974 |
| Long-term debt |
613,446 |
350,085 |
368,151 |
305,181 |
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| Total debt |
734,640 |
461,219 |
497,015 |
514,604 |
| Total liabilities |
2,600,162 |
2,139,270 |
1,751,349 |
1,559,423 |
| Shareholders’ equity |
$ 1,089,627 |
$ 609,086 |
$ 781,735 |
$ 1,004,682 |
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| Other Comparative Data |
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| Net income (loss) /Total assets |
1.0% |
1.4% |
(1.6)% |
1.8% |
| Net income (loss) /Net sales |
1.0% |
1.5% |
(1.7)% |
1.7% |
| EBIT/Beginning invested capital (2) |
5.6% |
6.0% |
0.2% |
4.9% |
| Beginning invested capital: |
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| Total assets |
2,748,356 |
2,533,084 |
2,564,105 |
2,441,318 |
| Less: cash and cash equivalents |
(82,050) |
(33,392) |
(10,927) |
(7,906) |
| Current portion of deferred income taxes |
(36,003) |
(42,895) |
(43,094) |
(39,706) |
| Long term portion of deferred income taxes |
(169,051) |
(27,164) |
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- |
| Accounts payable and other liabilities |
(296,543) |
(258,001) |
(239,182) |
(236,602) |
| Salaries, wages and benefits |
(222,546) |
(254,291) |
(137,320) |
(120,295) |
| Accrued pension cost |
- |
- |
- |
- |
| Accrued postretirement benefits cost |
- |
- |
- |
- |
| Income taxes |
(3,847) |
- |
(1,527) |
(5,627) |
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| Beginning invested capital |
1,938,316 |
1,917,341 |
2,132,055 |
2,031,182 |
| Inventory days (FIFO) |
101.7 |
111.1 |
104.8 |
108.5 |
| Net sales per associate (3) |
$ 172.0 |
$ 139.0 |
$ 124.8 |
$ 127.9 |
| Capital expenditures |
$ 127,062 |
$ 90,673 |
$ 102,347 |
$ 162,717 |
| Depreciation and amortization |
$ 208,851 |
$ 146,535 |
$ 152,467 |
$ 151,047 |
| Capital expenditures/Depreciation |
60.8% |
61.9% |
69.9% |
112.4% |
| Dividends per share |
$ 0.52 |
$ 0.52 |
$ 0.67 |
$ 0.72 |
| Earnings per share (4) |
$ 0.44 |
$ 0.63 |
$ (0.69) |
$ 0.76 |
| Earnings per share - assuming dilution (4) |
$ 0.44 |
$ 0.62 |
$ (0.69) |
$ 0.76 |
| Debt to total capital (5) |
40.3% |
43.1% |
38.9% |
33.9% |
| Number of associates at year-end |
26,073 |
17,963 |
18,735 |
20,474 |
| Number of shareholders (6) |
42,184 |
44,057 |
39,919 |
42,661 |
(1) EBIT is defined as operating income plus other income (expense) - net.
(2)EBIT/Beginning invested capital is a type of return ratio that gauges profitability. EBIT is defined as operating income plus other income (expense) - net. Beginning invested capital is calculated as total assets less the following balance sheet line items: cash and cash equivalents; the current and long-term portions of deferred income taxes; accounts payable and other liabilities; salaries, wages and benefits; and income taxes.
(3)Based on the average number of associates employed during the year.
(4)Based on the average number of shares outstanding during the year and includes the cumulative effect of accounting change in 2002, which related to the adoption of SFAS No. 142.
(5) Debt to total capital equals total debt divided by total debt plus shareholders’ equity.
(6)Includes an estimated count of shareholders having common stock held for their accounts by banks, brokers and trustees for benefit plans.
(7) It is impractical for Timken to reflect 2000 segment financial information related to the 2003 reorganization of its Automotive and Industrial Groups, as this structure
was not in place at the time.
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Financial Summary • Letter to Shareholders • Soaring with Opportunities • Driving New Opportunities
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Financial Information • Directors • Officers and Executives • Shareholder Information
2003 Annual Report in Print Friendly Format (600K - PDF format)
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