Milestones in The Torrington Company’s History
IV - 4th Period, Timken 2003 Onward
-Torrington was part of the Engineered Solutions segment of the IR operations
2003, February 18.......... (intent previously announced October 16, 2002)
- The Torrington Company acquired by The Timken Company
- Timken completed its acquisition of The Torrington Company from Ingersoll-Rand for $840 million, consisting of:
.....- Cash $700 - Raised through
- .........................Public offering of 12.65 million Timken shares
- .........................Issue of $250 million seven-year senior unsecured notes
- .........................Five-year revolving credit facility
- .........................$125 million securities accounts receivable facility
.....- Timken shares, approx. 9.4 million, valued at $140 million, giving IR an about 11 percent ownership of Timken
- Torrington 2002 sales were $1.204 billion with Operating Income of $85.2 million
- $20 million pretax savings expected in the first 12 months from consolidating purchasing activities and distribution channels and $80 million by the end of 2005 when operations are combined and redundancies are eliminated
2003 cont’d
- Timken agreed to
…..sell the airframe operations in Torrington, Conn
…..sell the assets of the Rockford, Ill bearing plant (built in 1989).
…..move production from the Darlington, England bearing plant to other facilities and shut it down (built in 1965)
….continued integration of engineering, customer service and administrative functions
- NSK Ltd. exercised its right to acquire Torrington’s share in the NSK Torrington Co. Ltd. (NTC) from Timken for $146 million. For the fiscal year ended in March 2003, NTC had sales of $212.2 million. It was henceforward to be known as NSK Needle Bearings Co., Ltd.
- Note that in 1963 there were 360 Yen per US $ whereas by 2003 the value of the Yen had increased (or the value of the dollar had decreased) to 110 per $. That is a +325% increase in US Dollar value solely due to the rates of exchange even without considering growth. Thus, over the years, the strengthening of the Yen had a very beneficial effect on any Yen denominated dividends paid by NTC to its US owner or even on the ultimate value of its investment.
- Finding no buyers, Timken closed the Fafnir Division ball bearing facility in Rockford, Illinois
2004
- Kilian Manufacturing Corporation and its affiliate of Toronto, Canada are sold.
Kilian sales in 2003 were $40 million. They produced machined-race bearings, ball and roller, for sliding and overhead doors, furniture, appliance, conveyor and automotive steering applications.
2005
- Closed the automotive engineering center in Torrington, CT and Norcross, Georgia
- Closed manufacturing facility in Clinton, South Carolina (built in 1961).
- Downsized manufacturing facility in Vierzon, France
2006
- Closed administrative facilities in Torrington, CT
- Sold Nova Friburgo, Brazil facility (acquired in 1962)
- Timken completed divestiture of its automotive steering business located in Watertown, CT
- The Timken Company
.....................Net Sales.......Oper. Inc.....Net Income
..... 2006.....$4,973,365...$219,350....$222,527
..... 2005.....$4,823,167...$326,960....$260,281
..... 2004.....$4,287,197...$234,928....$135,656
..... 2003...$3,626,490..$101,875.....$36,481
..... 2002.....$2,384,077.....$85,657......$38,749
..... 2001.....$2,447.2........($17.7).........($41.7)
..... 2000.....$2,643.0.......$105.6..........$38.73
..... 1999......$2,495.0.......$132.8................x
..... 1998......$2,679.8........$225.0...............x
- Torrington
..... 2002.....$1,203.75........$85.15..............x
..... 2001......$1,077.8........$102.1................x
..... 2000.....$1,161.0.........$172.6................x
..... 1999......$1,239.5.........$145.7................x
..... 1998......$1,239.5.........$137.2................x
2007
- May 23, 2007 Ingersoll-Rand Torrington Unit will stay in Connecticut and build an automotive parts plant in Watertown consolidating manufacturing operations from three local facilities.
2007
- RBC Bearings (Mike Hartnett’c company) builds new 137,000 square foot aircraft products facility in Torrington on the Winsted Road and will relocate its operations from its current leased (from Timken) facility.
End
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4 comments:
So in 2002 Timken bought Torrington partly with 7 year notes (secure bonds) and in 2002+7 = 2009 sold what was left of it to JTEKT. Interesting.
2/31/2009
Timken Finalizes Sale of Needle Roller Bearings Business to JTEKT
CANTON, Ohio: Dec. 31, 2009 — The Timken Company (NYSE: TKR) today announced it completed the sale of its Needle Roller Bearings business to Japan’s JTEKT Corporation.
Timken received approximately $330 million, including retained receivables, from the sale. These proceeds will be used for general company purposes, while also providing additional liquidity, bolstering the company’s financial position in a year it expects to generate strong cash from operations.
"The completion of this deal is a win for everyone involved," said James W. Griffith, Timken president and chief executive officer. "The Needle Roller Bearings business' new owner is committed to the automotive industry, which provides new opportunity to customers and the talented associates who are transferring with the deal.
"As to Timken, we've fundamentally changed our portfolio of business, in line with our strategy to optimize the enterprise. The resources now in hand can be used to create greater value for our customers and shareholders, including pursuit of new growth in attractive industrial sectors."
Part of Timken’s acquisition of Torrington in 2003, the Needle Roller Bearings business manufactures highly engineered needle roller bearings for automotive and industrial applications. Facilities becoming part of JTEKT on January 1, 2010, are in these locations:
North America: Cairo, GA; Dahlonega, GA; Sylvania, GA; Greenville, SC; Walhalla, SC; and Bedford, Quebec, Canada.
Europe: Brno and Olomouc, Czech Republic; Maromme, Moult, and Vierzon, France; Kuensebeck, Germany; and Bilbao, Spain.
Asia: LiYuan District, China.
For the first nine months of 2009, the Needle Roller Bearings business had approximately $289 million in sales and incurred a loss of about $59 million. While the divestiture will reduce Timken’s sales for the full year, the net effect on the company’s earnings is expected to be positive.About the Needle Roller Bearings Business
A leading global manufacturer of highly engineered needle roller bearings for automotive and mobile applications, the Needle Roller Bearings business was originally formed in 1912, and acquired by Timken through its acquisition of The Torrington Company in February 2003. The business had $621 million in sales in 2008 and employs approximately 3,400 associates. With 12 manufacturing facilities and three technology centers around the world, the Needle Roller Bearings business primarily serves original-equipment and tier-one automotive manufacturers, including customers in North America, Europe and Asia.About JTEKT
JTEKT Corporation ("JTEKT", www.jtekt.co.jp/e) is a leading Japanese manufacturer of steering systems, driveline components, bearings and machine tools. The company’s bearings solutions are used in a wide variety of applications, including automobiles, jet engines, windmill power generators, and shinkansen (bullet trains). JTEKT was formed in January 2006 following the merger of Toyoda Machine Works Ltd. and Koyo Seiko Co. Ltd. Koyo Seiko was founded in 1921, and Toyoda Machine Works in 1941. Headquartered in Nagoya and Osaka, JTEKT has 34,000 employees, with operations in 70 locations worldwide, encompassing Asia/Oceania, North America and Europe. JTEKT’s President is Motohiko Yokoyama, and Chairman is Kohshi Yoshida. As of March 31, 2009, JTEKT had sales of $10.9 billion (1,017 billion JPY). About The Timken Company
The Timken Company (NYSE: TKR, http://www.timken.com) keeps the world turning, with innovative friction management and power transmission products and services, enabling our customers’ machinery to perform more efficiently and reliably. With sales of $5.7 billion in 2008 and operations in 26 countries, Timken is Where You Turn™ for better performance. The Timken Company
My first thought, after a brief prayer of thanksgiving that I did not have to watch these events taking place, was that it reminded me of a vulture picking our bones clean.
Reading the chronology of events, and the rapidity with which they took place, confirms in my mind that there was in place a specific plan for the acquisition and ultimate destruction of the Torrington Company as a viable manufacturing force in the industry. Why, I have no idea! Someone else must have some insights into this situation!
It's interesting but one of the explanations give to us in a management meeting, as I recall in late 1968, concerning the "merger" of Torrington & IR was to protect both of the companies from the very thing that IR ultimately did to us with the sale of Torrington to Timken whose only interest in the acquisition seems to have been the ultimate destruction of The Torrington Company.
There never was any indication that Torrington was to be a “wholly owned subsidiary” but the specific language was that we were merging as “equal partners” which as you can now see was just not the case!
Why is that do you suppose?
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