New Report Preview

Timken (TKR) reported record 1Q earnings from continuing operations of $1.58/share, which adjusted to $1.61/share excluding a one-time expense related to the new labor agreement, well ahead of the Street’s $1.25/share, and sharply higher than 4Q’s adjusted $1.11/share.

Guidance for 2012 was revised up to $5.40-5.70/share (excluding one-time benefits of $0.70/share) from $4.90-5.20/share in late January.  The company revised overall 2012 sales growth to 7-10% from 5-8% in late January, due to upward revisions for the Mobile Industries and Process Industries segments.

The company is seeing strengthening demand from the energy, mining and rail markets as well as the global industrial aftermarket.  TKR is seeing increased sales from recent acquisitions and is seeing the signs of recovery in the company’s aerospace business.

Our full report is available to subscribers only and provides further thoughts on Timken’s 1Q conference call, as well as our opinion on the stock and the implication for other steel equities.

For a free trial subscription, please contact us.