. …………..…….IR…….Timken
As of
12/31/1998.…..$46.51.…$17.97
12/31/1999.……54.83.….20.19
12/29/2000.…..41.88.….15.12
12/31/2001.……41.81.….16.18
12/31/2002.……43.06.….19.10
Sell off Torrington to Timken
12/31/3003.……67.88.….20.06
12/31/2004.……80.30.….26.02
12/30/2005.……80.74.….32.02 IR stock split 2:1 9/2/05
12/29/2006.……78.26.….29.18
Avg. of 1st 7 end of the month values
...in 2007..……….94.48.….32.16
IR stock is up 119% after shedding Torrington whereas Timken stock is up just over 68% since then, 12/31/2002. IR stock value keeps rising.
I would like to be able to say the swing in stock prices was the effect of the Torrington transaction but of course I can’t. There are too many other factors that have come into play in these two organizations to draw such a conclusion.
But, can we conclude with a little more veracity that the acquisition of Torrington was beneficial to Timken and the price of its stock? Has anyone made a more in depth analysis of the financials over the years. Do you have any comments? Yes it seems to have been a benefit to Timken as well as a benefit to IR where the expectation for performance appears to be greater than at Timken.
Below is a summary of Sales and Operating Income for Timken which are made to include Torrington in the years prior to 2003.
- The Timken Company……………Including Torrington
………………………………........................pre 2003.......
.................Net Sales.......Oper. Inc…Net Sales.....Oper. Inc
…...1999.....$2,495.0.......$132.8..….$3,734.500...$278,500
..... 2000.....$2,643.0.......$105.6.....$3,804.000...$278,200
..... 2001.....$2,447.2........($17.7)..…$3,525.000..…$84.400
..... 2002.....$2,384,077....$85,657...$3,587.527...$170,807
..... 2003....$3,626,490...$101,875...$3,626,490...$101,875
..... 2004.....$4,287,197...$234,928....$4,287,197...$234,928
..... 2005.....$4,823,167...$326,960....$4,823,167...$326,960
..... 2006.....$4,973,365...$219,350....$4,973,365...$219,350
Torrington seems to be a plus for Timken. It seems to be a question of expectation where it would be more for IR than Timken,
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It seems our Topics for discussion so far have been somewhat too controversial. This is the last Topic of that nature. From now on we will be soliciting your participation in another category labeled "Personal Input" abbreviated as "PI"
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