Summary of Operations and Other Comparative Data



  2003 2002 2001 2000
(Thousands of dollars, except per share data)        
         
Statements of Income        
Net sales:        
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
Total net sales 3,788,097 2,550,075 2,447,178 2,643,008
         
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
         
Balance Sheets        
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:        
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
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
         
Other Comparative Data        
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:        
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) - -
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)
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.



Financial Summary • Letter to Shareholders • Soaring with Opportunities • Driving New Opportunities
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