Timken (TKR) Q2 FY2024 earnings: revenue $1.2 billion, down 7.1% on the year

Timken Co. (TKR) reported revenue of $1.2 billion for Q2 FY2024, the quarter ended 30 June 2024, down 7.1% on the same quarter a year earlier. Net income was $96 million, down 23.2% on the year, and diluted earnings per share $1.36. The figures are the company's own, from the 10-Q it filed with the SEC on 31 July 2024.

Revenue$1.2 billiondown 7.1%

Net income$96 milliondown 23.2%

Diluted EPS$1.36

QuarterQ2 FY2024ended 30 June 2024

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	1,182	1,190	n/a	n/a
Cost of revenue	809	793	n/a	n/a
Gross profit	374	398	n/a	n/a
Gross margin	31.6%	33.4%	n/a
Selling, general and administrative	184	191	n/a	n/a
Operating income	167	185	n/a	n/a
Operating margin	14.1%	15.5%	n/a
Interest expense	34.6	32.2	n/a	n/a
Pre-tax income	138	153	n/a	n/a
Income tax	35.9	42.7	n/a	n/a
Effective tax rate	26.0%	27.9%	n/a
Net income	96.2	104	n/a	n/a
Net margin	8.1%	8.7%	n/a
Diluted EPS	$1.36	$1.46	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	125	49.3	n/a	n/a
Capital expenditure	37.3	44.1	n/a	n/a
Free cash flow	87.3	5.2	n/a	n/a
Free cash flow margin	7.4%	0.4%	n/a
Cash from investing	-34.9	-24.5	n/a	n/a
Cash from financing	-37.0	-15.0	n/a	n/a
Depreciation and amortisation	54.2	55.3	n/a	n/a
Share-based compensation	7.0	4.5	n/a	n/a
Buybacks	29.7	0.0	n/a	n/a
Dividends paid	23.9	24.5	n/a	n/a
Dividend per share	$0.34	$0.33	n/a	n/a
Diluted shares, weighted	71m	71m	n/a	n/a
Shares outstanding at period end	70m	70m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Shareholders' equity	2,797	2,608	n/a	n/a
Non-controlling interest	153	127	n/a	n/a
Short-term borrowings	27.7	243	n/a	n/a
Debt	2,149	2,157	n/a	n/a
Operating lease liabilities	78.0	82.2	n/a	n/a
Other liabilities	1,371	1,327	n/a	n/a
Total liabilities and equity	6,576	6,544	n/a	n/a
Goodwill	1,350	1,353	n/a	n/a
Intangible assets	968	990	n/a	n/a
Cash and equivalents	470	422	n/a	n/a
Receivables	790	770	n/a	n/a
Inventory	1,233	1,231	n/a	n/a
Other assets	1,766	1,778	n/a	n/a
Total assets	6,576	6,544	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,143	1,091	1,190	1,182	1,127	1,074	1,140	1,173	1,157	1,111	1,231	1,261
Cost of revenue	787	760	793	809	782	748	782	813	808	786	837	862
Gross profit	356	331	398	374	344	325	359	360	349	325	394	399
Gross margin	31%	30%	33%	32%	31%	30%	31%	31%	30%	29%	32%	32%
SG&A	180	190	191	184	190	188	185	190	186	187	201	206
Operating income	150	119	185	167	146	113	144	148	139	109	169	84.8
Operating margin	13%	11%	16%	14%	13%	11%	13%	13%	12%	10%	14%	7%
Interest expense	27.5	30.8	32.2	34.6	30.3	28.0	26.5	29.8	27.3	26.7	24.3	26.2
Pre-tax income	124	61.5	153	138	112	90.8	118	116	108	73.8	143	57.9
Tax rate	27%	-1%	28%	26%	22%	17%	23%	26%	31%	11%	26%	36%
Net income	87.9	58.7	104	96.2	81.8	71.2	78.3	78.5	69.3	62.3	98.2	28.9
Net margin	8%	5%	9%	8%	7%	7%	7%	7%	6%	6%	8%	2%
Diluted EPS	$1.23	$0.83	$1.46	$1.36	$1.16	$1.01	$1.11	$1.12	$0.99	$0.89	$1.40	$0.41
Operating cash flow	194	128	49.3	125	123	179	58.6	111	201	183	39.3	107
Capital expenditure	43.6	52.9	44.1	37.3	35.0	53.6	35.2	33.1	37.3	42.6	38.8	26.6
Free cash flow	151	75.4	5.2	87.3	88.2	125	23.4	78.2	164	141	0.5	80.5
Buybacks	63.9	32.5	0.0	29.7	1.7	9.1	23.1	22.6	0.0	11.7	28.0	20.0
Dividends paid	23.4	23.2	24.5	23.9	23.8	23.9	25.1	24.4	24.4	24.4	25.3	25.0
Shares outstanding	71m	70m	70m	70m	70m	70m	70m	70m	70m	70m	69m	69m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2024, filed 31 July 2024, accession 0000098362-24-000102: the filing on EDGAR. All of Timken Co.'s filings: EDGAR company page.

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