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Q1 2015 Earnings Call – Timken Steel Material Services

Timken Steel Material Services · Apr 20, 2015 · 25 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q1 2015 Earnings Call – Timken Steel Material Services – slide 1
    1Q 2015 Earnings Investor Presentation April 30, 2015
  2. Q1 2015 Earnings Call – Timken Steel Material Services – slide 2
    EARNINGS CALL DETAIL Timken 1Q 2015 Earnings Conference Call Conference Call: Thursday, April 30, 2015 11:00 a.m. Eastern Time Live Dial-In: 888-778-9065 or 913-312-1503 (Call in 10 minutes prior to be included.) Conference ID:…
  3. Q1 2015 Earnings Call – Timken Steel Material Services – slide 3
    AGENDA Overview & Business Update Rich Kyle President and CEO Financial Review Phil Fracassa Executive Vice President and CFO Question/Answer 4
  4. Q1 2015 Earnings Call – Timken Steel Material Services – slide 4
    1Q 2015 HIGHLIGHTS Sales of 723 million down 2% from prior year, up 3% excluding currency of 5% Process Industries up 5%; up 9% excluding negative currency of 4% Mobile Industries sales down 7%; 4.5% of decline related to currency…
  5. Q1 2015 Earnings Call – Timken Steel Material Services – slide 5
    IMPROVING COST STRUCTURE SG&A ( Mils.) 145 141.8 13.3 Mils. Cost 140 Improvement 136.8 135 132.2 131.7 130 128.5 125 Percent of Sales 19.2% 17.3% 16.8% 17.3% 17.8% 120 1Q-2014 2Q-2014 3Q-2014 4Q-2014 1Q -2015 Steadily…
  6. Q1 2015 Earnings Call – Timken Steel Material Services – slide 6
    2015 OUTLOOK UPDATE January April Outlook Outlook Change Reflects Sales 3.1 Bil. 3.0 Bil. Markets / + 4% + 1% Flat markets with modest Penetration outgrowth Currency - 3% - 5% Impact of stronger US dollar Total + 1% - 4% Earnings…
  7. Q1 2015 Earnings Call – Timken Steel Material Services – slide 7
    OUTGROWTH INITIATIVES Hub Bearings: Launching new hub bearing for automotive OE Timken Power Systems: New high-speed gear drive manufacturing facility in Houston Housed Units: Introduced at Hannover Fair our newest housed unit…
  8. Q1 2015 Earnings Call – Timken Steel Material Services – slide 8
    OUR FOCUS Adjust to the strong dollar environment Remain flexible to respond to the market environment Drive margin enhancement/competitiveness initiatives - Operational excellence - Mix - SG&A efficiency Continue to build our…
  9. Q1 2015 Earnings Call – Timken Steel Material Services – slide 9
    Financial Review
  10. Q1 2015 Earnings Call – Timken Steel Material Services – slide 10
    1Q 2015 FINANCIAL HIGHLIGHTS SALES ( Millions) 1Q 15 1Q 14 B/(W) % B/(W) Sales 722.5 736.8 (14.3) (2)% Sales of 723 million, down 2% from a year ago Growth of 2.5% driven by wind energy, military marine and rail sectors, and the…
  11. Q1 2015 Earnings Call – Timken Steel Material Services – slide 11
    1Q 2015 FINANCIAL HIGHLIGHTS EBIT ( Millions) 1Q 15 1Q 14 B/(W) % B/(W) Sales 722.5 736.8 (14.3) (2)% Gross Profit 202.5 218.1 (15.6) % of sales 28.0% 29.6% (160) bps SG&A 128.5 141.8 13.3 % of sales 17.8% 19.2% 140 bps…
  12. Q1 2015 Earnings Call – Timken Steel Material Services – slide 12
    1Q 2015 FINANCIAL HIGHLIGHTS ADJ. EBIT ( Millions) 1Q 15 1Q 14 B/(W) % B/(W) Sales 722.5 736.8 (14.3) (2)% Gross Profit 202.5 218.1 (15.6) % of sales 28.0% 29.6% (160) bps SG&A 128.5 141.8 13.3 % of sales 17.8% 19.2% 140 bps…
  13. Q1 2015 Earnings Call – Timken Steel Material Services – slide 13
    1Q 2015 EARNINGS COMPARISON Adjusted EBIT of 73 million or 10.1% of sales compares with 75 million or 10.2% of sales in the same period a year ago Negative currency and unfavorable mix more than offset the benefit of higher volume…
  14. Q1 2015 Earnings Call – Timken Steel Material Services – slide 14
    1Q 2015 NET INCOME AND DILUTED EPS 1Q 15 1Q 14 in Millions EPS in Millions EPS Net (Loss) Income (135.2) (1.54) 60.0 0.64 - Pension settlement charges 215.2 2.45 0.7 0.01 - Impairment and restructuring charges 6.6 0.07 4.2 0.05 -…
  15. Q1 2015 Earnings Call – Timken Steel Material Services – slide 15
    MOBILE INDUSTRIES 1Q Performance 1Q YOY Commentary ( Millions) Sales decrease of 6.8% driven by 2015 2014 Change negative currency, lower aerospace, Sales 393.0 421.7 (28.7) agriculture and automotive aftermarket demand, partially…
  16. Q1 2015 Earnings Call – Timken Steel Material Services – slide 16
    PROCESS INDUSTRIES 1Q Performance 1Q YOY Commentary ( Millions) Sales increase of 4.6% due to market 2015 2014 Change growth in wind energy and military Sales 329.5 315.1 14.4 marine sectors, as well as acquisitions, partially offset…
  17. Q1 2015 Earnings Call – Timken Steel Material Services – slide 17
    1Q 2015 CASH FLOW OVERVIEW ( Millions) 1Q 15 1Q 14 Income from Continuing Operations (134.8) 60.3 Change in working capital (trade) (14.5) (25.6) Pension/OPEB expense, net of contributions / payments 218.2 (8.1) Depreciation &…
  18. Q1 2015 Earnings Call – Timken Steel Material Services – slide 18
    CAPITAL ALLOCATION Balance Sheet (3/31/15) ( Millions) Net Debt/Capital Capital Structure ( Millions) Net Debt Net Debt/ Capital 800 40% Cash 169 Target: 30 40% Debt 523 600 30% Net Debt 354 20% 400 20% Equity 1,416 13% Net…
  19. Q1 2015 Earnings Call – Timken Steel Material Services – slide 19
    2015 FULL-YEAR OUTLOOK Sales: down approximately 4% Sales (vs. 2014) Organic Net Growth Currency Sales Negative currency of 5% Mobile Industries Flat to (1)% (5)% Down 5 to 6% Growth of 1%, driven by light vehicle, wind energy and…
  20. Q1 2015 Earnings Call – Timken Steel Material Services – slide 20
    2015 ADJ. EPS OUTLOOK WALK FROM 2014 2.55 (0.35) 2015 Adjusted EPS Guidance Range: 2.30 - 2.40 - - - Approximate Estimates - - - 2.35 Mid-point of 0.10 Guidance Positives 0.05 Organic sales growth of 1%, with (0.05) 0.10…
  21. Q1 2015 Earnings Call – Timken Steel Material Services – slide 21
    Appendix
  22. Q1 2015 Earnings Call – Timken Steel Material Services – slide 22
    GAAP RECONCILIATION: CONSOLIDATED EBIT & EBIT MARGIN Reconciliation of EBIT to GAAP Net (Loss) Income, and EBIT Margin, After Adjustments, to Net (Loss) Income as a Percentage of Sales and EBIT, After Adjustments, to Net (Loss) Income:…
  23. Q1 2015 Earnings Call – Timken Steel Material Services – slide 23
    GAAP RECONCILIATION: SEGMENT EBIT & EBIT MARGIN Reconciliation of segment EBIT Margin, After Adjustments, to segment EBIT as a Percentage of Sales and segment EBIT, After Adjustments, to segment EBIT: The following reconciliation is…
  24. Q1 2015 Earnings Call – Timken Steel Material Services – slide 24
    GAAP RECONCILIATION: NET INCOME & EPS Reconciliations of Adjusted Net Income from Continuing Operations and Net (Loss) Income from Continuing Operations to GAAP (Loss) Income from Continuing Operations and Adjusted Earnings Per Share to…
  25. Q1 2015 Earnings Call – Timken Steel Material Services – slide 25
    GAAP RECONCILIATION: NET DEBT & FREE CASH FLOW Reconciliation of Total Debt to Net Debt and the Ratio of Net Debt to Capital: This reconciliation is provided as additional relevant information about the Company's financial position.…

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