LONDON, UK / ACCESSWIRE / July 7, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for The Timken Co. (NYSE: TKR), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=TKR. The Company announced on July 05, 2017, that its majority-owned subsidiary, Timken India Ltd, has entered into a definitive agreement to acquire ABC Bearings, Ltd. The transaction is structured in the form of a merger where shareholders of ABC Bearings are entitled to receive 5 shares of Timken India for eight shares held. ABC Bearings is a manufacturer of tapered, cylindrical, and spherical roller bearings, and slewing rings. For immediate access to our complimentary reports, including today's coverage, register for free now at:
http://protraderdaily.com/register/
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TKR. Go directly to your stock of interest and access today's free coverage at:
http://protraderdaily.com/optin/?symbol=TKR
The Announcement
Timken views this agreement as a step to expand in the growing Indian bearing market. The Company expects the acquisition to increase its capacity, customer base, and locally produced product breadth. Additionally, the Company plans to leverage ABC Bearings' competitive manufacturing footprint to serve export markets. The Company expects the transaction to close in Q1 FY18, ending March 31, 2018, subject to the receipt of approvals.
ABC Bearings serves as an established original equipment customer base in India, primarily in heavy truck and off-highway industries, where its net sales for FY16 was about $29 million. The addition of ABC Bearings portfolio, according to the Company will strengthen its innovative and competitive solutions to serve the customers. ABC Bearings currently operates through its manufacturing facilities in Bharuch, Gujarat, and Dehradun, Uttarakhand.
Lubrication Portfolio
The Timken Company is a leading engineering and manufacturing firm, with an additional offering of rebuild and repair services. Timken reported net sales of $2.7 billion in FY16 and currently operates with more than 14,000-strong workforce, employed across 28 countries. On June 27, 2017, the Company announced a definitive agreement, pursuant to which It acquired Groeneveld Group, a leading provider of automotive lubricant solutions, used in on- and off-highway applications, for about $280 million.
Groeneveld Group reported net sales of $105 million, for the 12-month period ended May 31, 2017. Headquartered in Gorinchem, Netherlands, with manufacturing facilities in Italy, the Company offers automatic lubrication delivery systems, which enhance vehicle and machine uptime through automated maintenance and safety support. The Company employs about 600 people currently and also owns a small telematics business, which delivers solutions for truck fleet operators.
Mechanical Power Transmission Portfolio
In an attempt to expand its mechanical power transmission portfolio on May 05, 2017, the Company announced the acquisition of assets of PT Tech, Inc., a manufacturer of engineered clutches, brakes, hydraulic power take-off units and other torque management devices used in mining, aggregate, wood recycling and metals industries. Based in Sharon Center, Ohio, PT Tech currently serves as an established original equipment customer base primarily in North America, where the Company's net FY16 sales stood at $20 million. The terms were not disclosed for this transaction.
Prior to the announcement, on April 26, 2017, the Company raised its FY17 outlook and expects revenues up 5%-6% versus FY16. The Company also anticipates FY17 EPS to be in the range from $2.15 to $2.25 for full-year on a GAAP basis, and adjusted EPS in the range of $2.35 to $2.45.
Last Close Stock Review
At the closing bell, on Thursday, July 06, 2017, Timken's stock was slightly down by 0.54%, ending the trading session at $45.85. A total volume of 720.80 thousand shares has exchanged hands. The Company's stock price skyrocketed 5.77% in the last three months, 10.62% in the past six months, and 52.27% in the previous twelve months. Moreover, the stock surged 15.49% since the start of the year. The stock is trading at a PE ratio of 28.32 and has a dividend yield of 2.36%. The stock currently has a market cap of $3.51 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily