TImken

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					         This spreadsheet supports STUDENT analysis of the case,
         "Timken Company" (Case 46)




Copyright (C) 2008, by the University of Virginia Darden School Foundation.
                          Timken Corporate Income Statements, 2001–02
                                  ($ millions, except percentages)

                                                 2001      2002      2001     2002
Total Operating Revenue                       $2,447.2  $2,550.1    100.0%   100.0%
Cost of Goods Sold                            (2,046.5) (2,080.5)
Gross Profit                                    400.7     469.6     16.4%    18.4%
Sales, General & Administrative                (363.7)   (358.9)
Impairment and Restructuring Expenses           (54.7)    (32.1)
Operating Profit                                (17.7)     78.6     -0.7%    3.1%
Interest Expense (net of interest income)       (31.3)    (29.9)
                                                 29.5
Receipt of Continued Dumping & Subsidy Offset Act payment 50.2
Other non-operating expenses                     (7.5)    (13.4)
Income Before Tax                               (27.0)     85.5
Income Taxes                                    (14.8)    (34.1)
                                               ($41.7)
Net Income before Cumulative Effect of Accounting Change $51.4      -1.7%    2.0%
Cumulative Effect of Accounting Change            0.0     (12.7)
Net Income                                     ($41.7)    $38.7

EBIT (before non-recurring)                    37.0       110.7
Depreciation                                  152.5       146.5
Capital Expenditures                          102.3        90.7
                                  Timken Balance Sheet
                                      ($ millions)

Assets                                      2001      2002
 Cash                                       33.4      82.1
 Receivables                               307.8     361.3
 Inventory                                 429.2     488.9
 Other Current Assets                       58.0      36.0
 Total Current Assets                      828.4     968.3
 Net Property Plant & Equipment          1,305.3   1,226.2
 Other Assets                              399.4     553.9
 Total Assets                            2,533.1   2,748.4

Liabilities
 Accounts Payable                          258.0     296.5
 Current Portion of Long Term Debt          42.4     111.1
 Notes Payable                               2.0       0.0
 Other Current Liabilities                 338.8     226.5
 Total Current Liabilities                 641.2     634.1
 Long Term Debt                            368.2     350.1
 Deferred Tax Liability                    742.0   1,155.1
 Total Liabilities                       1,751.3   2,139.3
 Shareholders' Equity                      781.7     609.1
 Total Liabilities & Owners Equity.      2,533.1   2,748.4
                   Ingersoll-Rand and Torrington Comparative Income Statements, 2001–02
                                       ($ millions, except percentages)

                                                       Ingersoll-Rand

                                              2001     2002      2001     2002
Net sales                                 $8,604.2 $8,951.3     100.0%   100.0%
Cost of goods sold                         6,736.5  6,826.5
Gross profit                               1,867.7  2,124.8      21.7%   23.7%
Selling and administrative expenses        1,370.5  1,439.8
Restructuring charges                         73.7     41.9
Operating income                             423.5    643.1      4.9%    7.2%
Net interest expense                        (268.8)  (241.0)
Minority interests                           (20.7)   (14.4)
Earnings before income taxes                 134.0    387.7
(Benefit)/provision for income taxes         (48.1)    20.3
Earnings from continuing operations          182.1    367.4
Discontinued operations (net of tax)         64.1       93.6
Cumulative effect of accounting changes       0.0     (634.5)
Net earnings                               $246.2    ($173.5)    2.9%    -1.9%


                                                         Torrington

                                            2001      2002       2001     2002
Sales                                     $1,004.3    $1,204    100.0%   100.0%
Operating Income                           $78.0     $85.2       7.8%     7.1%
                                     Ingersoll-Rand Balance Sheet
                                               ($ millions)

Assets                                              2001         2002
 Cash                                             $114.0       $342.2
 Receivables                                     1,359.8      1,405.3
 Inventory                                       1,143.9      1,983.8
 Deferred Tax Asset                                321.2          0.0
 Other Current Assets                              760.2        381.1
 Total Current Assets                            3,699.1      4,112.4
 Net Property Plant & Equipment                  1,289.5      1,279.9
 Goodwill                                        4,807.5      4,005.5
 Intangible Assets                                 848.1        890.9
 Other Assets                                      489.6        520.9
 Total Assets                                  $11,133.8    $10,809.6

Liabilities
 Accounts Payable                                 $701.6     $2,347.4
 Accrued Expenses                                1,470.7      1,155.5
 Short Term Debt                                   561.9          0.0
 Other Current Liabilities                         249.3        295.2
 Total Current Assets                            2,983.5      3,798.1
 Long Term Debt                                  2,900.7      2,092.1
 Minority Interests                                107.6        115.1
 Other Noncurrent Liabilities                    1,225.4      1,326.1
 Total Liabilities                               7,217.2      7,331.4
 Shareholders' Equity                            3,916.6      3,478.2
 Total Liabilities & Owners Equity             $11,133.8    $10,809.6
This data was extracted by EdgarScan from the PricewaterhouseCoopers Global Technology Centre.
nology Centre.
                   Torrington Financial Summary and Projections, 1999–2007
                                            ($ millions)

                         1999      2000        2001        2002     2003E    2004E    2005E    2006E    2007E
Net sales              $1,239.5 $1,161.0 $1,004.3          $1,204 $1,282.0 $1,365.3 $1,454.1 $1,548.6 $1,649.2
Operating income         $145.7   $172.6 $78.0             $85.2     $90.7    $96.6  $102.9    $109.5   $116.7

Sales Growth                        -6.3%      -13.5%       19.9%     6.5%     6.5%     6.5%     6.5%     6.5%
Operating Margin          11.8%     14.9%        7.8%        7.1%     7.1%     7.1%     7.1%     7.1%     7.1%

Capital Expenditures      $84.0     $85.0       $45.0       $41.0   $175.0   $130.0   $140.0   $150.0   $160.0
Depreciation Expense      $75.0     $77.0       $79.0       $80.0    $84.2    $90.0    $96.0   $102.0   $108.5
`
                              Select Financial Ratios by S&P Credit-Rating Categories
                                  (Median value for industrial companies, 2000–2002)

                                     AAA        AA         A        BBB        BB         B         CCC
EBIT interest coverage (x)           23.4      13.3       6.3       3.9        2.2       1.0         0.1
EBITDA interest coverage (x)         25.3      16.9       8.5       5.4        3.2       1.7         0.7
EBITDA/sales (%)                    23.4%     24.0%      18.1%     15.5%      15.4%     14.7%       8.8%
Total debt/capital (%)               5.0%     35.9%      42.6%     47.0%      57.7%     75.1%      91.7%


Ratio Definitions:
EBIT interest coverage = EBIT/interest expense
EBITDA interest coverage = EBITDA/interest expense
EBITDA/sales = EBITDA/sales
Total debt/capital = (Long-term debt plus current maturities and other short-term borrowings)/(Long-term debt plus current maturities and other short-term
maturities and other short-term borrowings + Shareholders’ equity)
                                  Financial Data on Companies in Bearing Industry

                                                                           EBITDA             Price              Enterprise
                                                                    Net    Interest  # of      Per    EBITDA      Value/    Debt
Bearing Companies          Beta    Debt*    Sales*   EBITDA      Income*   Coverage Shares*   Share   % of Sales EBITDA Rating
Kaydon Corp.               1.25     72.4    279.4      60.1        25.4       3.6    30.3     20.0     21.5%       11.3
NN Inc.                    0.85     53.1    180.2      26.2         4.7       6.5    15.4      9.3     14.5%        7.5
Timken                     1.10    461.2   2,550.1    257.2        51.5       7.5    63.4     16.8     10.1%        5.9      BBB
Commercial Metals          0.63    255.6   2,441.5    138.2        40.5       5.2    28.0     17.9      5.7%        5.5      BBB
Metals Usa Inc.            0.38    128.7    943.7       4.0        48.8       0.2    20.2       -       0.4%         -
Mueller Industries         1.08     18.2    955.3     123.9        71.2      84.9    34.3     25.9     13.0%        7.3
Precision Castparts Corp   1.10    612.4   2,117.2    389.6       159.4       6.2    52.8     21.7     18.4%        4.5     BBB-
Quanex Corp.               0.75     75.6    994.4     127.0        55.5       5.2    16.4     34.7     12.8%        5.1
Worthington Industries     0.49    290.9   2,219.9    188.0        75.2       2.4    85.9     18.7      8.5%       10.1      BBB


* Millions
    Capital-Market Information
         (December 2002)

Government      Yield
 Short Term      1.86%
 Intermediate    3.55%
 Long Term       4.97%

Industrials
  AAA            5.22%
  AA             5.38%
  A              5.84%
  BBB            7.23%
  BB             9.69%
  B             10.84%

				
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