Timken Earns Seven Cents a Share

Timken (TKR), one of my Quantum Growth stocks, just reported disappointing earnings for the fourth quarter. The company lost 38 cents a share, however, if you just look at earnings from continuing operations, which is the key, the company earned a profit of seven cents a share. Still, that was 10 cents below Wall Street’s forecast.

“Benefits from pricing and cost costs were outweighed by lower demand, high materials costs, and expenses related to valuing Timken’s inventory, the company said.

“Sales fell 10 percent to $1.21 billion, compared with Wall Street forecasts of $1.25 billion. Sales and profit were down in Timken’s bearings and power transmission group. Its mobile industries segment posted an operating loss, in part reflecting weak demand from U.S. and European car and truck markets.

“Timken, which has cut about 2,500 jobs over the past 15 months, said it expected 2009 profit to be less than half its earnings in 2008. It forecast a range of $1.30 to $1.60 per share, excluding special items, compared with $1.82 expected by analysts.”

The stock is down sharply today. It’s still above our stop-loss point so I don’t want you to sell, but I have to admit that I’m disappointed with Timken’s performance. I’ll have more to say in Monday’s Briefing.

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