The Timken Company: SWOT Analysis & Company Profile by BusinessReview

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									The Timken Company


The Timken Company: SWOT Analysis &
Company Profile

Reference code: BRCT009CP10-Q4

Published: Apr 2010

Business Review
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The Timken Company - SWOT Profile                                                   Page 1
The Timken Company


The Timken Company - Company Overview

The Timken Company (Timken) is an US based engineering bearings manufacturing company. It engages in the
production of highly engineered anti-friction bearings, alloy steels and related products and services. It principally
operates under two business groups namely, the Steel Group and the Bearings and Power Transmission Group which
comprise of three reportable segments: Mobile Industries, Process Industries, andAerospace and Defense. Timken also
provides remanufacture & repair, maintenance and training services. It operates a network of 61 manufacturing facilities,
12 technology centers and 15 distribution centers across the world. The company geographic operations are spread
across 26 countries in six continents. Timken is headquartered in Canton, Ohio, the US.

Financial Performance

The company reported revenues of (U.S. Dollars) USD 3,141.63 million during the fiscal year ended December 2009, a
decrease of 37.68% from 2008. The operating loss of the company was USD 50.51 million during the fiscal year 2009, as
against an operating income of USD 471.08 million during 2008. The net loss of the company was USD 133.96 million
during the fiscal year 2009, as against a net profit of USD 267.67 million during 2008.

The Timken Company - Key Facts

The Timken Company, Key Facts

                                  1835 Dueber Avenue, S.W.,
                                  Canton, Ohio (OH), 44706,         Ticker Symbol, Stock         TKR (New York Stock
Corporate Address:
                                                                    Exchange                     Exchange)
                                  United States

Telephone                         + 1 330 4383000                   No. of Employees             17,000

Fax                               + 1 330 4586006                   Financial Year End           December

URL                                         Revenue (in USD Million)     3,141.63

                                  Clean Technology , Metals and
Industry                          Mining

                                  Australia, China, Democratic People's Republic of Korea, India, Japan, Singapore, Taiwan, Czech
                                  Republic, France, Germany, Italy, Luxembourg, Netherlands, Poland, Romania, Russian Federation,
Locations                         Spain, Turkey, United Kingdom, South Africa, Canada, United States, Argentina, Brazil, Mexico,
Source: Annual Report, Company Website, Primary and Secondary Research


The Timken Company - SWOT Profile                                                                                        Page 2
The Timken Company


The Timken Company - Business Description

The Timken Company is a global manufacturer of engineered bearings, alloy and specialty steel and related components.
Its product portfolio includes tapered roller bearings that are applicable in passenger cars, light and heavy trucks, and
trains, as well as range of industrial applications, such as small gear drives and wind energy machines; precision
cylindrical and ball bearings for ultra high-speed and high-accuracy applications in the aerospace, medical and dental,
computer, and other industries. The company also provides a wide array of power transmission components & assemblies
and maintenance services.

Timken functions under two business groups namely the Bearings and Transmission group, and the Steel group. The
Bearings and Power Transmission Group further consists of three operating segments: Mobile Industries, Process
Industries and Aerospace and Defense.

The company through its Mobile Industries segments provides bearings, power transmission components and other
products and services to a wide variety of customers’ including original equipment manufacturers (OEM) and suppliers for
light trucks, medium and heavy-duty trucks, rail cars, locomotives and mining, construction and agricultural equipments.
Mobile industries group also caters to aftermarket distributors of automotive products. This segment reported revenues of
USD 1,245.0 million during the fiscal year ended December 2009, a decrease of 29.7% over 2008.

The Process Industries segment provides bearings and assemblies, seals, lubricants, component and bearing repair,
condition monitoring, reliability services and other related products and services to diverse range of customers. It offers
solutions to OEM providers of power transmission, energy and heavy industries machinery, including paper mills, sawmills
printing presses, cranes, wind energy turbines, gear drives, drilling equipment, coal conveyors and crushers and food
processing equipment. Timken's global customer base includes 1,400 original equipment manufacturers, 2,000
independent distributors and hundreds of thousands of end-users. This segment reported revenues of USD 806.0 million
during the fiscal year ended December 2009, an increase of 30.7% over 2008.

Timken through its Aerospace and Defense segment engages in the production of helicopter transmission systems,
bearings, rotor head assemblies, turbine engine components and other flight-critical components that are applicable in
commercial and military aviation applications. It also manufactures bearings for OEM manufacturers of health and
positioning control equipment. Further, the Aerospace and Defense segment also provides services such as aerospace
bearing repair, repair and overhaul of engines, transmissions and fuel controls and component reconditioning. This
segment reported revenues of USD 417.7 million during the fiscal year ended December 2009, an increase of 1.4% over

Further, the company’s Steel segment manufactures nearly 450 grades of carbon and alloy steel in solid and tubular
sections with a variety of lengths and finishes. It also manufactures customized steel products for both automotive and
industrial applications, including precision steel components. The company utilizes nearly 10% of its steel in bearing
operations. It caters to automotive and truck, forging, construction, industrial equipment, oil and gas drilling, anti-friction
bearing companies and steel service centers. Its has an annual melt capacity of more than 1.5 million tons. This segment
reported revenues of USD 672.9 million during the fiscal year ended December 2009, a decrease of 60.3% over 2008.

In addition the company also engages in offering complete range of repair services for industrial components such as
bearings, chocks, rolls and reconditioning services for suspension units, bearings, motor and axle boxes. Timken also
involves in aerospace supply chain management & fleet support services.

Timken has 47 manufacturing facilities, eight technology and engineering centers, 12 distribution centers operating in 26
countries and territories.

In addition, the company also involves in the process of improving environmental performance by reducing impacts and
risks while increasing recycling and energy conservation and handling hazardous waste. The company makes strategic
investments in business processes and systems such as Project O.N.E. which is a multi-year program launched in 2005
to improve the company’s business processes and systems. It recycle waste materials such as scrap metal, office paper,
aluminum cans, wooden pallets, plastic bottles and office equipment in manufacturing facilities. The company has also
restructured its steel-making operations with energy-efficient electric-arc furnace technology and increased dependence
on recycled content to produce new steel.

The company classifies its geographic locations into three regions namely, the US, Europe and Other Countries. The US
region contributed USD 1,943.23 million, Europe contributed USD 536.18 million and Other Countries contributed USD
662.22 million to the company sales in 2009.

In 2009, Timken launched a new packaged, industrial magnetic encoder designed to provide increased reliability and
performance over conventional optical encoders, especially in high-shock and vibration conditions. During the same year,
the company completed the sale of its Needle Roller Bearings business to Japan’s JTEKT Corporation, a leading global
manufacturer of highly engineered needle roller bearings for automotive and mobile applications.


The Timken Company - SWOT Profile                                                                                     Page 3
The Timken Company


The Timken Company - Major Products and Services

Timken is one of the world's leading producers of highly engineered antifriction bearings, alloy steel and components, and
related products. The company's key products and services include the following:

The Timken Company, Major Products and Services


Alloy Steel and Steel Components

Engineered Services and Coatings

Power Transmission Components and Systems

Motion Control Systems

Lubrication Products

Source: Annual Re
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