Friday, January 27, 2012

Rail demand for Timken bearings grows

Written by  Luther S. Miller, Senior Consulting Editor

The Timken Co. Friday reported record sales of $5.2 billion for 2011, up 28% from 2010 on "strong demand from diverse industrial markets,” including the railroads., (The growing railroad market for Timken roller bearings reflects the soaring demand for freight cars.)

Mobile Industries Segment 2011 sales were $1.8 billion, up 13% from $1.6 billion a year ago. 'Higher demand in the rail, off-highway, and heavy-truck sectors drove most of the increase," said Timken.

The Mobile Industries segment had EBIT of $243.2 million, or 13.7% of sales, for the year, up 17% from $207.6 million, or 13.3% of sales, earned in 2010. Higher volume and pricing drove the increase, partially offset by higher raw material costs.

In the fourth quarter, Mobile Industries' sales were $419.6 million, up 8% from the prior year's fourth-quarter sales of $388.6 million.