| | Jan 31, 2014 — CANTON, Ohio -- The Timken Company (NYSE: TKR; www.timken.com) today reported sales of $4.3 billion for 2013, a decrease of 13 percent from the prior year. The decline reflects lower demand across most of the company's broad end markets. In addition, a $117 million decline in Steel segment raw material surcharges from the prior-year period further decreased revenues.
The reduction in sales was partially offset by the benefit of acquisitions of $86 million in the company's Mobile Industries and Process Industries segments and from strength in the Steel segment's automotive end-market sector.
In 2013, the company generated net income of $262.7 million, or $2.74 per diluted share, compared with $495.5 million, or $5.07 per diluted share, a year ago. Results for 2013 included $32.8 million of after-tax expense, or $0.35 per diluted share (reference Table 1) related to (a) tax expense incurred on the repatriation of overseas cash, (b) tax benefits associated with the reversal of certain income tax reserves from prior years, (c) separation costs associated with the proposed spinoff of the steel business, (d) costs related to previously announced plant closures, and (e) other unusual items. Excluding these items, 2013 net income was $295.5 million, or $3.09 per diluted share.
This compares with 2012 net income of $464.6 million, or $4.76 per diluted share, excluding costs related to previously announced plant closures and Continued Dumping and Subsidy Offset Act (CDSOA) receipts. The decrease in earnings primarily reflects lower volume and manufacturing utilization as well as unfavorable sales mix, which was partially offset by lower raw material and selling and administrative expenses as well as favorable pricing.
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