BERRY BEARING COMPANY

April 24, 1995

21HR
Subsidiary (100%) of Genuine Parts Company, headquartered in Atlanta GA. Berry operates as a Division of Motion
Industries.
----
See internet site for most current information.
INTERNET: http://www.motion-industries.com/
COMPETITIVE TYPE: Distributor
MAJOR PRODUCT CLASSES: Drive Train
General Usage
Not Elsewhere Classified
LOCATIONS:
Headquarters - Lyons, Illinois
Branches - All branches, except where indicated, operate the same as the headquarters.
- Addison, IL 1790A Courtland Court
- Bourbonnais, IL 811 Larry Power Rd.
- Broadview, IL 1920 N. Beach Ave.
- Chicago, IL 3900 S. Cicero Ave.
- Chicago, IL 3839 S. Normal Ave.
- Chicago, IL 26th & Michigan Avenue
- Chicago, IL 3825 S. Normal Ave.
- Chicago, IL 1900 W. Hubbard St.
- Chicago Heights, IL 100 Halstead St.
- Countryside, IL 5446 East Ave.
- Danville, IL 1250 N. Michigan Avenue
- Elgin, IL 786 N. Church Rd.
- Elk Grove Village, IL 1345 Landmeier Rd.
- Joliet, IL 1223 N. Broadway Ave.
- Moline, IL 1920 5th Ave.
- Montgomery, IL 1125 S. Lake St.
- Niles, IL 3801 Oakton St.
- Peru, IL 2017 4th St.
- Quincy, IL 312 State St.
- Rockford, IL 3483 Lonergan Dr.
- Urbana, IL Triumph Drive
- Waukegan, IL 800 Glen Flora Ave.
- West Chicago, IL 397A Charles Court
- Wheeling, IL 625 Wheeling Rd. (Uses trade-style Quintcities Bearing)
- Clinton, IA 1615 Lincolnway St.
- Dubuque, IA 12th & Kerper Blvd.
- Des Moines, IA 1505 E. Aurora St.
- Ft. Madison, IA Jefferson Industrial Park
- Muscatine, IA 2011 Grandview St.
- Oak Lawn, IL 5400 W. 111th St.
- Ottumwa, IA 802 S. Madison Ave.
- Waterloo, IA 1512 Falls Ave.
Maintains P.O. Box, Chicago, IL used as a lock box for remittance purposes only.
Subsidiary -
- Bearing Machine & Fabricating Co., Chicago, IL
Affiliates - Intercompany relations except where indicated for all locations below consist of occasional merchandise
transactions and service transactions.
- Berry Bearing Co. Inc. (IN), Hammond, IN, started 1937. Operates as a wholesaler of bearings.
- Illinois Bearing Co. (Inc.), Peoria, IL, started 1941. Operates as a wholesaler of mechanical power-driven
machine tools, equipment, supplies, mechanical power transmission equipment and supplies.
- Wisconsin Bearing Company Inc. (WI), Milwaukee, WI, started 1933. Operates as a wholesaler of bearings
in Wisconsin.
- Bearings Service Company (Inc.) (IN), South Bend, IN, started 1982. Operates as a wholesaler of bearings
and mechanical power transmission equipment.
- Bearings Service Company (Inc.) (IL), Marion, IL, started 1942. Operates as a wholesaler of bearings and
mechanical power transmission equipment.
- Mountain Bearing & Supply Company (Inc.) (WY), Gilette, WY, started 1975. Operates as a subsidiary of
Bearing Supply Company (Inc.) (MT) and wholesales bearings. Intercompany relations: None reported by
management.
- Bearings Manufacturing Company (Inc.) (IL), Chicago, IL, started 1934. Operates as a manufacturer of
special bearings.
- Bearing Service Company, Madisonville, KY, started 1942. Operates as a wholesaler of bearings and
mechanical power transmission equipment.
- Berry Machine and Fabricating Company Inc. (formerly Mercury Machine and Fabrication Company),
Chicago, IL, started 1983. Operates as a heavy machining and machine shop.
(4/95 - D&B)
EMPLOYMENT:
1986 - 500 (11/90 - Duns Market Identifiers)
1988 - 500 (11/90 - Duns Market Identifiers)
May 1994 - 1,300 (125 at headquarters) (4/95 - D&B)
SALES:
1986 - $ 52,500,000 (11/90 - Duns Market Identifiers)
1988 - $ 55,000,000 (11/90 - Duns Market Identifiers)
1992 - $340,000,000
1993 - $370,000,000 (4/95 - D&B)
Mar 1994 - $390,000,000 projected (4/95 - D&B)
----
The parent company, Genuine Parts Company, reported that its Industrial Parts Group (which is comprised of Motion
Industries Inc. and another subsidiary, Berry Bearing Company), posted sales and operating profit of $1,153,371,000
and $96,727,000, respectively, for the year ended Dec. 31, 1993. (4/95 - D&B)
HISTORY:
1920 - Business started by Lester and Gertrude Berry.
1993 - January 29, purchased by Genuine Parts Co. for 9.5 million shares of common stock valued at $300.4
million.
PRODUCTS:
Wholesales industrial ball and roller bearings and power transmission equipment (95%), and operates a heavy machine
shop (5%). (4/95 - D&B)
----
Berry may carry a number of brands, but as of 4/24/95, The Timken Company was the only brand information in the
Competitive Parts Report (CPR) portion of PMIS.
PRODUCT FEATURES:
QUALITY:
MARKETING:
PRODUCT SUPPORT, WARRANTY:
PRICING:
Terms are net 30 days. (4/95 - D&B)
----
No list price information in Pricing (P&MR) Dept.'s CIS system as of 4/24/95.
----
No transaction level price observations in the Competitive Parts Report (CPR) portion of PMIS as of 4/24/95.
DISTRIBUTION & GEOGRAPHIC AREAS SERVED:
Has 50,000 accounts; sells to manufacturers, machine shops, and every other major industry. Territory is nationwide.
(4/95 - D&B)
----
Berry Bearing has 95 outlets stretching from Maine to Montana, 13 of them in Chicagoland.
Bearings Inc. and Motion Industries (Berry Bearing) are the only two firms now expanding to a national base. The
next eight largest have been content with regional markets, though there has been some movement towards joint
ventures between them. (9/9/93 - Chicago Tribune)
APPARENT MARKETING STRATEGY:
ASSESSMENT OF STRENGTHS:
ASSESSMENT OF WEAKNESSES:
FUTURE OUTLOOK:
LAST D&B: April 19, 1995
DUNS (D&B NUMBER): 00-385-2720
SIC (CODES): 5085 Wholesales Bearings & Power Transmission Equipment
LAST PROFILE REVIEW/UPDATE: April 24, 1995
FAG GROUP - NEWS
August 15, 2000
35ERNEWS
http://www.fag.com/
NN INC., SKF, & FAG KUGELFISCHER START EUROBALL JOINT VENTURE FOR BALL
MANUFACTURING 8/15/00
On August 1, 2000, NN Inc. (Erwin, TN, USA), SKF (Goteborg, Sweden), and FAG Kugelfischer Georg
Schafer AG (Schweinfurt, Germany) announced that they have finalized their previously announced agreement
to form a jointly owned stand-alone company in Europe, named NN Euroball ApS.
The new company has acquired ball factories located in Pinerolo, Italy (SKF), Eltmann, Germany (FAG) and
Kilkenny, Ireland (NN Inc.) with approximately 700 employees and yearly sales of approximately 95 million
Euro. The company will manufacture and sell high precision chrome steel balls used for ball bearings and other
products, and expects that the economy of scale achieved will enhance competitiveness in both cost and quality.
According to the terms of the agreement, NN Inc. will own 54 percent of the shares in the new company, and
SKF and FAG will each own 23 percent.
NN Inc. is a leading manufacturer and supplier of precision steel balls to bearing manufacturers and had sales of
US $85.3 million in 1999. SKF, Sweden, is the world's largest bearing company with sales of SEK 36.7 billion
in 1999. FAG Kugelfischer, Germany is one of the largest European bearing manufacturers with sales of DEM
3.7 billion in 1999. (8/1/00 - PRNewswire)
NN BALL & ROLLER, SKF, & FAG KUGELFISCHER START JOINT VENTURE FOR BALL
MANUFACTURING, FORMING NN EUROBALL APS 4/15/00
On April 10, 2000, NN Ball & Roller , Erwin, TN,USA; SKF, Goteborg/Sweden; and FAG Kugelfischer Georg
Schafer AG, Schweinfurt/Germany; announced they will start a jointly owned stand-alone company in Europe -
- NN Euroball ApS-- for the manufacture and sale of chrome steel balls used for ball bearings and other
products.
NN Ball & Roller Inc. will have 54 percent of the shares in the new company, SKF and FAG will have 23
percent each. NN Euroball ApS plans to start to operate during the summer 2000.
This new company will acquire the ball factories located in Pinerolo, Italy (SKF), Eltmann, Germany (FAG)
and Kilkenny, Ireland (NN Ball & Roller Inc.). The number of employees will be approximately 700 and yearly
sales will be about 100 million euro. The economy of scale will enhance competitiveness in both cost and
quality.
NN Ball & Roller, had sales of $85.3 million US dollars (88 million euro) in 1999. SKF, Sweden, is the world's
largest bearing company with sales of SEK 36.7 billion (4.2 billion euro) in 1999. FAG Kugelfischer, Germany
is one of the largest European bearing manufacturers with sales of DEM 3.7 billion (1.9 billion euro) in 1999.
(4/10/00 News Release)
NN BALL & ROLLER, FAG KUGELFISCHER AND SKF PLAN JOINT VENTURE FOR BALL
MANUFACTURING 6/30/99
NN Ball & Roller, Erwin, TN; FAG Kugelfischer Georg Schafer AG, Schweinfurt, Germany; and SKF,
Goteborg, Sweden; have agreed to investigate the feasibility of creating a jointly owned stand alone company in
Europe for the manufacture and sale of chrome steel balls used for ball bearings and other products.
All the three companies today have steel ball manufacturing facilities in Europe. FAG has a factory in Eitmann,
Germany, and SKF has a factory in Pinerolo, Italy, serving internal as well as external customers. NN Ball &
Roller has a factory in Kilkenny, Ireland, supplying external customers.
Such a joint venture would become a ball manufacturer with yearly sales of about 100 million Euros and some
700 employees. The economy of scale will enhance competitiveness in both cost and quality.
NN Ball & Roller, USA, is a leading manufacturer and supplier of precision steel balls to bearing
manufacturing with sales of 73 million US dollars in 1998. FAG Kugelfischer, Germany, is one of the largest
European bearing manufacturers with sales of 3,352 million DEM. SKF, Sweden, is the world's largest bearing
company with sales of 37,688 million SEK. (6/22/99 - PRNewswire)
MOTION INDUSTRIES INC.
April 24, 1995
21WD
Subsidiary (100%) of Genuine Parts Company (GPC), headquartered in Atlanta GA.
INTERNET: http://www.motion-industries.com/
GPC: http://www.genpt.com/
GPC News: http://biz.yahoo.com/n/g/gpc.html
COMPETITIVE TYPE: Distributor
MAJOR PRODUCT CLASSES: Drive Train
Hydraulics
LOCATIONS:
Headquarters - Birmingham, Alabama
Branches - Motion has approx. 225 branches in 25 states.
Distribution centers are located at Birmingham, AL; Dallas, TX; Adison Heights, MI; and Tracy, CA.
In 1993, opened two new branches in Martinsville, VA and Show Low, AZ. (9/93 - Industrial Distribution Magazine)
Redistribution center is also located in Birmingham, AL.
Service centers for fluid power and special hose applications are located in California (1), Alabama (2), Arkansas (2),
Mississippi (1), and Texas (3). (4/95 - D&B)
EMPLOYMENT:
Sept 1994 = 2,600 (290 at headquarters)
SALES:
Fiscal year ends December 31.
----
1991 = $654,364,000 (4/95 - D&B)
1992 = $712,880,537 (4/95 - D&B)
1993 = $783,371,000 Approx., based on information below and Berry Bearing reported sales.
The parent company, Genuine Parts Company, reported that its Industrial Parts Group (which is comprised of Motion
Industries Inc. and another subsidiary, Berry Bearing Company), posted sales and operating profit of $1,153,371,000
and $96,727,000, respectively, for the year ended Dec. 31, 1993. (4/95 - D&B)
As of December 31, 1993, company work was reported as $169,065,565. (4/95 - D&B).
HISTORY:
1924 - Business started.
1976 - Apparently this is the year acquired by Genuine Parts Company.
PRODUCTS:
Wholesales industrial supplies, including bearings and power transmission equipment, which are used to maintain and
keep in operation plants, machinery and equipment. (4/95 - D&B)
PRODUCT FEATURES:
QUALITY:
MARKETING:
PRODUCT SUPPORT, WARRANTY:
PRICING:
Terms - 1%, 10, 25, net 30. (4/95 - D&B)
----
No list price information in Pricing (P&MR) Dept.'s CIS system as of 4/24/95.
----
DISTRIBUTION & GEOGRAPHIC AREAS SERVED:
Has 75,000 accounts; sells to manufacturers. Territory is south, southwest, midwest, far west United States. (4/95 -
D&B)
GENERAL:
APPARENT MARKETING STRATEGY:
ASSESSMENT OF STRENGTHS:
ASSESSMENT OF WEAKNESSES:
FUTURE OUTLOOK:
LAST PROFILE REVIEW/UPDATE: April 24, 1995
LAST D&B: April 19, 1995
DUNS (D&B NUMBER): 00-796-0446
SIC (CODES): 5085 Wholesales Industrial Supplies
NTN-BOWER CORPORATION
May 6, 1996
31EY
INTERNET: http://www.ntn.co.jp/kaisha/kaigai/na/address6.html
COMPETITIVE TYPE: Manufacturer
MAJOR PRODUCT CLASSES: Anti-Friction Bearings for the following product classes:
Engine Drive Train Hydraulics
LOCATIONS:
Headquarters - Macomb, Illinois
707 Bower Rd.
Owns 20,000 sq. ft. in one-story steel and concrete-block building, industrial section, on side street.
Branches:
- Hamilton, AL (mfgrs. roller bearings and parts)
- Macomb, IL (mfgrs. roller bearings and parts), 711 N. Bower Rd.
Related Companies:
The following are related through the parent.
- NTN Corp., Osaka, Japan, started 1934. Manufactures bearings, machine tools, and parts.
- NTN Bearing Corporation of America (Inc.), Mount Prospect, IL, chartered 1963. Wholesales bearings.
Intercompany relations consist of merchandise transactions from this business settled monthly, with goods
shipped direct by this business to the customers of this related concern, as well as this business warehousing
goods sold by it to this related concern settled monthly. This related company is a subsidiary of NTN USA
Corporation.
- American NTN Bearing Manufacturing Co. (Inc.), Schiller Park, IL, chartered 1971. Manufactures ball
bearings. Intercompany relations consist of sale of component parts from this business settled monthly. This
related company is a subsidiary of NTN USA Corporation.
- NTN Driveshaft Inc., Columbus, IN, chartered 1989. Manufactures constant velocity joints. No intercompany
relations. This related company is a subsidiary of NTN USA Corporation.
- NTN Technical Center (USA) Inc., Ann Arbor, MI, chartered 1988. Engineering, research, and development
services. Intercompany relations consist of research, development, and technical support services from this
related concern on regular terms. This related company is a subsidiary of NTN Corp. (3/96 - D&B)
EMPLOYMENT:
1992 = 1,050 (28 at headquarters)(2/93 - D&B)
Mar 1996 = 31 Macomb, IL headquarters
550 Macomb, IL manufacturing
569 Hamilton, AL
1,150 Total (3/96 - D&B)
SALES:
Fiscal year ends March 31.
----
Profit
Year Ending Sales (Loss) Worth
Mar 1991 = $100,528,000 $351,000 $49,185,000 (2/93 - D&B)
Mar 1992 = 88,164,000 19,000 48,675,000 (2/93 - D&B)
Mar 1993 = 86,530,154 (951,092) 46,512,119 (3/96 - D&B)
Mar 1995 = 125,000,000 -- -- (3/96 - D&B)
1996 = Sales and profit for the nine-month period ending 12/31/95 were up, compared to same
period previous year. Increases attribtued to increase insales to an expanding customer
base and product line. (3/96 - D&B)
HISTORY:
1985 - December, business started by joint venture between NTN Corp. (60%) and Federal-Mogul Corp. (40%)
1987 - Federal-Mogul sold its interest but continues to distribute roller bearings in the worldwide aftermarket.
1990 - October, all of the capital stock of NTN-Bower Corp. was transferred by NTN Corp. to NTN USA Corp.
PRODUCTS:
Manufactures tapered and cylindrical roller bearings and parts. (3/96 - D&B)
PRODUCT FEATURES:
QUALITY:
NTN-Bower has two facilities that are certified suppliers to Caterpillar - Macomb, IL and Hamilton, AL. (5/96 -
ALAffolter, Cat Quality)
----
NTN Toyo Bearing Co. has five certified (by Cat) facilities - Iwata, Takarazuka, Kuwana, Kongo, and Okoyama,
Japan. (3/93)
----
Receives Quality Award from Ford New Holland 12/94 - NTN Corporation has received the Qualitas award from
Ford New Holland Americas for quality performance in providing bearings from the NTN-Bower plant in Macomb,
IL. As a Qualitas supplier, NTN will be given preferential status as a source of additional work. NTN is a
manufacturer of antifriction bearings, constant velocity joints, and precision equipment. (12/94 - Diesel Progress,
Engines & Drives Magazine)
MARKETING:
PRODUCT SUPPORT:
WARRANTY:
PRICING:
DISTRIBUTION & GEOGRAPHIC AREAS SERVED:
Sells to wholesalers and manufacturers. Territory is United States. (3/96 - D&B)
GENERAL:
Ranked as an 'A' DT (AF Bearings) Competitor/Supplier. (5/96)
APPARENT MARKETING STRATEGY:
ASSESSMENT OF STRENGTHS:
ASSESSMENT OF WEAKNESSES:
FUTURE OUTLOOK:
LAST D&B: March 11, 1996
LAST PROFILE REVIEW/UPDATE: May 6, 1996
DUNS (D&B NUMBER): 14-735-1092
62-143-0610 NTN USA Corp.
69-053-7105 NTN Corp.
SIC (CODES): 35 62 Manufacturing, Ball and Roller Bearings
SKF USA INC./AB SKF
August 19, 2000
22AI
Much of this profile is pretty old. Refer to Internet sites for most current information.
INTERNET: http://www.skf.com/ http://www.skfusa.com/
COMPETITIVE TYPE: Manufacturer
MAJOR PRODUCT CLASSES: Drive Train
Engine
General Usage
LOCATIONS:
AB SKF parent company is located in Goteborg, Sweden.
SKF USA Inc. is located in King of Prussia, PA.
Branches:
SKF USA maintains approximately 20 domestic manufacturing facilities and numerous warehouse and sales
facilities throughout the United States. The company also maintains the following divisions:
- SKF Condition Monitoring, San Diego, CA
- SKF Plain Bearings, Colebrook, CT
- Deep Groove Ball Bearing Division, Gainesville, GA
- Needle Roller Bearing Division, Bremen, IN
- SKF CR Industries, Elgin, IL
- SKF CR Services, Elgin, IL
- Tapered Roller Bearing Division, Glasgow, KY
- MRC Bearings, Jamestown, NY
- Angular Contact Ball Bearing Division, Altoona, PA
- SKF Component Systems, Bethlehem, PA
- SKF Handling Systems, Bethlehem, PA
- Nice Specialty Bearings, Kulpsville, PA
- Korody-Colyer Division, Compton, CA
- CR Industries, Springfield, SD (Mfgrs. Automobile Seats)
(12/94 - D&B)
----
Subsidiaries:
SKF USA has three subsidiaries:
- SKF Warehouses Inc, King of Prussia, PA, started 1975. Operates as a
wholesaler of ball, roller, and needle bearings.
- SKF Condition Monitoring Inc., San Diego, CA, started 1989. Operates as
a manufacturer of monitoring systems specializing in vibration meters.
- CR Industries, Inc., Springfield, SD, acquired October 1990, is currently
inactive.
Intercompany relations consist of merchandise transactions. (12/94 - D&B)
----
Sister Subsidiaries:
Through common parent, SKF USA is related to over 100 concerns throughout the world. The more prominent
ones are listed below:
- SKF Osterreich AG, Steyr, Austria
- SKF do Brasil Ltda, Sao Paulo, Brazil
- SKF France SA, Clamart, France
- SKF GmbH, Schweinfurt, Germany
- SKF Bearings India Ltd., Bombay, India
- SKF Industrie SpA, Rivoli, India
- SKF de Mexico, SA de CV, Mexico, DF
- SKF Espanola SA, Madrid, Spain
- SKF (UK) Limited, Luton, UK
All sister subsidiaries are engaged principally in the manufacturing and distribution of ball and roller bearings
and seals. intercompany relations include merchandising transactions and sharing of management. (12/94 -
D&B)
EMPLOYMENT:
SKF USA Inc.:
Apr. 1993 (yr) = 6,000 (400 at headquarters) (1/94 - D&B)
Oct. 1994 = 5,960 (400 at headquarters) (12/94 - D&B)
SKF Group employment as of Dec. 31:
1989 - 49,413 (1993 Annual Report)
1990 - 53,995 (1993 Annual Report)
1991 - 52,469 (1993 Annual Report)
1992 - 45,151 (1993 Annual Report)
1993 - 41,394 (1993 Annual Report)
SKF Group, Bearings & Seals, employment as of Dec. 31:
1991 - 43,490 (1993 Annual Report)
1992 - 41,523 (1993 Annual Report)
1993 - 38,203 (1993 Annual Report)
SALES:
SKF expands action program to improve profitability: On June 29, 1998, SKF announced an action program
which, together with the one launched in 1997, will increase the Group's annual operating earnings by SEK 1.5
billion for the year 2000 and beyond. The company will take provisions of more than SEK 1 billion, including
some depreciation of assets, during the second half of 1998. This is on top of the SEK 700 million provision
already made in 1997. This process will reduce the number of employees by about 4,000 in total.
Intense price competition and an unfavorable sales mix, resulted in weak first-quarter earnings in 1998. This
trend, in conjunction with developments in Asia, means that earnings in the second quarter will be below the
level of the first quarter.
The action program now being introduced includes the restructuring or elimination of operations with
unsatisfactory profitability. This will lead to factory closures and closures of production channels within
factories. The program also involves reduction of personnel within the different central units of the Group. At
the same time, the program includes greater focus on service.
SKF's objective is to reach an operating margin of 10 percent over a business cycle. SKF's current margin is
between 6 and 7 percent.
The Automotive business will be restructured. The division accounts for about 20 percent of the Group's total
revenues. Sales of bearings to the automotive industry are characterized by unsatisfactory profit margins, but
SKF Automotive consists of a number of different businesses - wheels, engines and other applications - all with
varying degrees of profitability. Products and businesses with insufficient profitability will be restructured or
phased out.
To grow its bearing operations, SKF will strengthen its focus on the service business. SKF will continue to offer
a full product range and also broaden the scope of business by creating new service concepts.
Substantial growth potential can be seen for SKF within the service and after-market areas. These operations
offer higher margins. With both a stable customer base and a strong brand name, SKF believes they have the
opportunity to become more active further ahead in the value chain. In their opinion, the service business will
show substantially greater growth than the market as a whole. (6/29/98 - SKF News Release / Internet)
----
SKF USA Inc. fiscal year ends 12/31:
1990 - $824,711,000 (1/94 - D&B)
1991 - 851,849,000 (12/94 - D&B)
1992 - 861,963,000 (12/94 - D&B)
1993 - 892,816,000 (12/94 - D&B)
----
SKF Group Sales:
Sales Sales
(Millions) (Millions)
Swedish U.S.
Year Kroner Dollars
1989 Skr 25,066 $3,864 (1993 Annual Report)
1990 27,766 4,689 (1993 Annual Report)
1991 26,302 4,340 (1993 Annual Report)
1992 26,649 4,587 (1993 Annual Report)
1993 29,200 3,748 (1993 Annual Report)
----
SKF Group Bearings & Seals sales:
Sales Sales
(Millions) (Millions)
Swedish U.S. % of
Year Kroner Dollars Total
1989 Skr 23,754 $3,662 95% (1993 Annual Report)
1990 26,476 4,471 95% (1993 Annual Report)
1991 24,347 4,018 93% (1993 Annual Report)
1992 22,690 3,905 85% (1993 Annual Report)
1993 27,199 3,492 93% (1993 Annual Report)
----
SKF Group, Bearings & Seals sales by geographical area:
1993
Europe, excluding Sweden 50%
Sweden 3%
North America 27%
Rest of the World 20%
----
SKF Group, Bearings & Seals sales by application field:
1993
Industrial Distributors 27%
Cars 16%
Trucks 9%
Railways 3%
Heavy Industry 6%
General Machinery 15%
Aerospace 4%
Electrical Industry 5%
End Users 6%
Vehicle Replacement 9%
----
SKF USA (5/94) management attributed the increase in sales and profits to growth of existing markets and new
applications for existing products, primarily in the auto industry. Improving margins are the result of
continuing programs targeted towards reducing costs and improving efficiency. The current trend is projected to
continue through 1994. No further expansion or cutbacks are expected over the next twelve months. (12/94 -
D&B)
Since 1990, worldwide sales have shrunk by more than 20%. SKF's operating profits, which peaked at Skr 2.6
billion (approximately $400.8M) in 1989, gave way to a Skr 1.1 billion loss in 1992; another large deficit was
reported in 1993.
High profile special orders have not made up for a collapse in mass-market volume. SKF's results mirror those
of the industry as a whole; bearing sales have fallen by more than 20% since 1990 as recession has overtaken
the car and truck industries which form a quarter of its market. A strengthening Swedish kroner further dulled
the figures. Last year the company set aside Skr 1.1 billion to continue a restructuring which has brought more
plant closures (most recently in Madrid) and shed almost 17,000 employees.
SKF still outsells its main rivals--FAG of Germany and NSK and NTN of Japan--by more than two to one.
Encouraged by signs of an upturn in Europe,which still accounts for 60% of its market, SKF stopped destocking
at the end of 1993 and expects to be back in profit by the end of 1994. (3/94 - International Management
Magazine)
HISTORY:
1909 - Business started.
1920s - SKF led the way into aerospace, locomotive and marine propulsion markets through its development
of spherical roller bearings in the early 1920s.
1970s - A program of centralization and automation during the 1970s saw the company eliminate a quarter of
the workforce and close six of 22 manufacturing sites. But while costs fell by a fifth, the problem of
lead-times remained, driving impatient customers to rivals who could supply them from stock.
1988 - January, U.S. business name changed from SKF Industries, Inc. to SKF USA Inc.
1990 - Planning $70m upgrading of Kentucky plant: Having won contracts with U.S. automakers for wheel
bearings, SKF Bearings Industries Inc., King of Prussia, PA will invest up to $70M in modification
and expansion of its existing 366,000 sq. ft. factory in Glasgow, KY. SKF is currently importing all
hub units from plants in Italy and France for sale in the U.S. The wheel bearings are currently subject
to dumping duties. The duties have speeded up SKF's process to increase capacity in the U.S.
Tapered roller bearings, which the wheel bearing units replace, are now made in Glasgow and
production of these will continue. Initially, $40M will go into training, equipment and factory
expansion with production beginning in June 1992. (8/20/90 - Metalworking News Magazine)
1990 - Completes acquisition of CR Industries (Chicago Rawhide): Swedish based SKF Group has
announced that its acquisition of CR Industries has been completed. (6/90 - Equipment Today
Magazine) Previous announcement: Swedish-based SKF Group has announced a definitive
agreement under which SKF will acquire from IFINT S.A., a Luxumbourg holding company, all the
stock of IFINT's wholly owned subsidiary, CR Industries (Chicago Rawhide Mfg. Co.). IFINT
acquired CR in 1979. CR is a producer of fluid sealing devices for the automotive, heavy truck, and
industrial original equipment and aftermarkets. It also supplies diesel engine parts (primarily Detroit
Diesel and Cummins) through its Korody-Colyer subsidiary. CR also offers capsule nozzles for
Caterpillar engines. SKF sees the agreement with CR as a strategic move to expand its operations in
the U.S., SKF Industries Inc. SKF expects the transaction to be completed by early April 1990. (5/90
- Equipment Today Magazine)
1992 - Dec. 31, CTT Tools Div. sold to Sandvik AB.
1994 - SKF acquires German seal/gasket manufacturer: SKF has finalized the acquisition of Goetze
Elastomere GmbH, a German manufacturer of seals, isolators, and gaskets from Britain's T&N Group.
Goetze, with 600 employees and annual sales of 100 million Marks (approx. $63.3M), will be part of
SKF's Seals Division, which consists of U.S. company Chicago Rawhide (CR) and Rft S.p.A. of Italy.
(12/7/94 - Dow Jones News & Reuters Information Services)
1996 - SKF breaks ground on new bearing plant in Aiken, SC 4/96: The SKF Automotive Bearing Div. of
the SKF Group broke ground on a new 289,000 sq. ft. plant located in Aiken, SC, that will produce
wheel bearing hub units for the U.S. domestic truck and automotive manufacturer markets. The plant,
scheduled to be operational by mid-1997, is expected to employ 276 workers and represents an
investment by the company of approximately $115 million dollars.
The facility, located in the Sage Mill Business Park, initially will have two production lines and has
been designed to accommodate future expansion. (4/96 - Fleet Equipment Magazine)
1996 - New Technical Center in Detroit, MI: SKF announced they would build a new Technical Center in
Detroit, MI. SKF is also building a new plant in Aiken, SC, for approximately $115M. The reported
combined investment totaled $123M, leaving $8M for the Technical Center. (4/96 - TP&S Magazine
& RBRodgers, P&MR)
1997 - Acquires bearing plant in Ukraine 1/98: SKF has acquired a majority holding in Lutsk Bearing Plant,
one of the largest bearings manufacturing companies in Ukraine. The agreement has been authorized
by the Government of Ukraine and is a step in the country's privatization process.
Located in the Volyn region of northwest Ukraine, the Lutsk Plant is the country's sole major producer
of taper roller bearings and needle roller bearings. The plant has approximately 300 employees.
Through the acquisition, SKF creates a strong platform for the emerging markets within Central and
Eastern Europe.
During 1997, Lutsk received ISO 9000 certification.
The plant produces bearings in sizes ranging from 45 mm to 320 mm in outer diameter. Principal
customers are the large automotive manufacturers in Russia, Ukraine and Belarus (cars, trucks, buses
and tractors). (12/29/97 - SKF News Release)
1998 - Personnel cuts at special steels plant, Ovako Steel AB: Ovako Steel AB the world's leading supplier
of special steels for the rolling bearing industry and engineering companies with particularly high
demands in terms of quality has served notice of its intention to reduce the work force at the
company's plants in Hofors and Hallefors, in Sweden, by a total of 200 people. The redundancy
notices result from a combination of already implemented and ongoing rationalization programs
within the production and administration areas and weakened order bookings.
In Hofors, about 120 people are involved, equally divided between members of PTK (the Private
Sector's Salaried Employees Negotiating Cartel) and Metall (the Swedish Metal Workers' Union). In
Hallefors, 45 Metall members are affected and 35 PTK members.
Ovako Steel AB is part of the Special Steels business area within the SKF Group, which has 2,800
employees and reported sales of approximately SEK 3.4 billion in 1997. (10/12/98 - SKF Press
Release)
1998 - SKF restructures in Luchow, Germany: Taper roller bearings are the largest bearing type within the
SKF Automotive Division. It is also the product type that is most exposed to competition. As part of
the Group's ongoing profit-improvement program, the manufacture of taper roller bearings will be
restructured.
The assortment at the plant in Luchow, Germany, will be streamlined and the manufacture of certain
variants of taper roller bearings will be terminated. The changes mean that the workforce will be
reduced by approximately 150 personnel. Luchow will specialize in large dimension taper roller
bearings, principally for use in heavy vehicles. Investments have been granted to support Luchow's
role as supplier of the allocated assortment. (9/25/98 - SKF News Release)
1999 - Roller Bearing Company of America (RBC) has acquired the tapered roller bearing operations of SKF
USA Inc. (9/99 - Diesel Progress, North American Edition Magazine)
1999 - SKF sells its 40% share of Swedish forging unit 2/99: SKF has decided to exit its involvement in the
forging unit at Arvika, Sweden. The decision affects 210 employees. Operations include production of
high-strength automotive components, such as connecting rods and items for diesel engines for heavy
trucks, among other products. The forging unit also supplies forged rings for the SKF bearing
production plants. The operations have been unprofitable during recent years and are not considered to
be of strategic importance to the SKF Group. The company is part of the SKF Steel Division.
SKF has agreed to sell its 40% shareholding in WPB Water Pump Bearing GmbH & Co. KG to the
German bearing group INA. The sale is in line with SKF's strategy to exit loss making businesses.
WPB Water Pump Bearing, with manufacturing of water pump spindles in Momo, Italy, was formed
in 1996 as a joint venture between SKF and INA. 1/25/99 - SKF Press Release)
1999 - SKF restructures automotive business in the Americas: The SKF Group has decided to cease
production of taper roller bearings in the U.S. and substantially reduce production capacity at its
Brazilian plant. The measures are intended to re-establish the profitability of the Group's automotive
business in the Americas.
Production of taper roller bearings in the U.S. is carried out entirely at the plant in Glasgow, Kentucky
and has been unprofitable for a number of years. SKF's market share for taper roller bearings in the
U.S. is small and the plant has been unable to achieve the critical volume required to achieve
profitable production. Accordingly, SKF will supply its customers with taper roller bearings
manufactured at other plants.
Some 280 persons in Glasgow are affected by the decision. The closure will be carried out by the third
quarter of 1999.
Due to the lower market demand, production capacity at the plant in Cajamar, outside Sao Paulo,
Brazil will be reduced by about one third, with the production of taper roller bearings (hub units for
automotive industry also) being reduced. The reduction in personnel initiated in 1998 will continue. In
total, the number of employees will decline by some 170. When demand in the Brazilian market
begins to accelerate again, SKF will supply the market with products manufactured in other Group
plants.
The costs for these measures amount to approximately MSEK 300 and will be charged against
earnings of the SKF Automotive Division in 1998. (SKF - 1/11/99)
2000 - On August 1, 2000, NN Inc. (Erwin, TN, USA), SKF (Goteborg, Sweden), and FAG Kugelfischer
Georg Schafer AG (Schweinfurt, Germany) announced that they have finalized their previously
announced agreement to form a jointly owned stand-alone company in Europe, named NN Euroball
ApS.
The new company has acquired ball factories located in Pinerolo, Italy (SKF), Eltmann, Germany
(FAG) and Kilkenny, Ireland (NN Inc.) with approximately 700 employees and yearly sales of
approximately 95 million Euro. The company will manufacture and sell high precision chrome steel
balls used for ball bearings and other products, and expects that the economy of scale achieved will
enhance competitiveness in both cost and quality.
According to the terms of the agreement, NN Inc. will own 54 percent of the shares in the new
company, and SKF and FAG will each own 23 percent.
NN Inc. is a leading manufacturer and supplier of precision steel balls to bearing manufacturers and
had sales of US $85.3 million in 1999. SKF, Sweden, is the world's largest bearing company with
sales of SEK 36.7 billion in 1999. FAG Kugelfischer, Germany is one of the largest European bearing
manufacturers with sales of DEM 3.7 billion in 1999. (8/1/00 - PRNewswire)
PRODUCTS:
Manufactures antifriction bearings and seals. The company's complete line of bearings including ball, roller,
spherical and needle bearings, rubber shaft and bearing seals, and condition testing equipment used for testing
bearings. (12/94 - D&B)
QUALITY:
The following SKF locations are Certified Suppliers to Caterpillar as of 12/94:
- SKF Plain Bearings USA, Winsted, CT, for Spherical Plain Bearings
- SKF, RKS Div., Avallon, France, for Slew Gear Bearings
- SKF Gleitlager, Puttlingen, Germany, for Spherical Plain Bearings
- SKF Ferramentas, Sao Paulo, Brazil, for Rotary Cutting Tolls with Shank
(12/94 - ALAffolter)
MARKETING:
PRODUCT SUPPORT:
Upgraded brochure documents SKF Trouble-Free Operation Program benefits 6/96: A revised and expanded
brochure that cites research data to document how the SKF Trouble-Free Operation Program can extend bearing
service life and virtually eliminate equipment downtime associated with bearing failure is now available from
SKF USA Inc.
The full-color, 16-page brochure details the four critical factors--product quality, proper installation,
maintenance and operating environment--necessary to achieve maximum bearing service life. Fourteen printed
technical articles that may be useful for informal in-house training are packaged in the brochure's rear pocket.
The brochure also includes a section on the network of 1,200 SKF- authorized distributors.
The SKF Trouble-Free Operation Program can include any combination of several SKF services and products,
including training, planned maintenance, engineering support, on-site troubleshooting, hot-line assistance,
bearing failure analysis, condition monitoring, bearing rework, maintenance tools, quality bearings, and more.
(6/96 - Fleet Equipment Magazine)
WARRANTY:
PRICING:
An unrivaled global distribution network has become less cost-effective with declining volumes, while
industrial customers drive ever harder bargains. As the leading world player, SKF should get an advantage
from setting prices, but this hasn't been possible in the past two years.
But in the 1960s, Japanese rivals begin to capture customers by delivering cheaper products faster, through long
runs of standardized products that exploited lower labor costs. SKF, producing close to customers in high
income countries, with an emphasis on special orders, had to match them on price to arrest the fall in market
share. (3/94 - International Management Magazine)
DISTRIBUTION & GEOGRAPHIC AREAS SERVED:
SKF USA sells to aerospace, automotive, electrical, industrial machinery and industrial distributors. Territory
is international (95% of sales are generated domestically). (12/94 - D&B)
----
List of warehouse locations as of 1994 are as follows:
- Atlanta, GA - Gainesville, GA (MRC Bearing Services)
- Reno, NV - Allentown, PA (Central Warehouse and Customer Services)
- Compton, CA - Bellmawr, NJ
- Chicago, IL - Portland, OR
- Youngstown, OH - Memphis, TN
- Lenexa, KS - Dallas, TX
- Eldon, MO
(12/94 - D&B)
----
Inventory for SKF USA turns four times a year. (12/94 - D&B)
----
Order fulfillment times dropped to nine weeks from 18 weeks by the end of 1993; a further halving is expected
in the next two years.
SKF is soon to merge its 20 European stockholding sites into a single distribution center near Brussels, saving
another Skr 1.7 billion of working capital. This center is directed at the aftermarket. Original equipment
customers will be supplied direct to their factory from SKF's factory. With 55 country sales forces and more
than 7,000 distributors, SKF hopes to gain more than its rivals from revival in the higher margin aftersales
market, which now yields almost half of total turnover.
Meanwhile, rivals have suffered a double blow--from increased demand for customized bearings and support
services, which has reduced the advantages of mass production, and from the rising deutschmark and yen. SKF
now holds its own in Europe and is gaining ground in the U.S., where its market share has gone from 6% in
1986 to about 13% in 1994. (3/94 - International Management Magazine)
There is a mountain to move in entering Japan itself, where imports still command less than 1% of bearing
sales. To get a significant share of the Japanese market, SKF would have to produce onshore. SKF would
never have gotten their present share of the U.S. market if they hadn't built up production within the country.
The company would need at least three times its current sales in Japan before a local plant could be feasible.
For now, it has to settle for an alliance with Japan's number three producer, Koyo.
Elsewhere in Asia, despite further joint ventures between SKF and local partners in India, Thailand, and
Singapore, about 85% of demand for the company's products is still met by exports from its European plant
(SKF's U.S. operations, by contrast, moved to 85% self-sufficiency with the 1990 purchase of Illinois-based
seals maker Chicago Rawhide). European production, concentrated at Schweinfurt in western Germany, is
proving difficult to export at competitive prices, however.
A newly opened factory near Kuala Lumpur in Malaysia will cut the cost of exports to Japan, and aims to forge
links with recently established Japanese manufacturing plants in southeast Asia. (3/94 - International
Management Magazine)
GENERAL:
Ranked by P&SM as an 'A' DT (AF Bearing) Competitor/Supplier. (8/00)
----
99.8% of capital stock of SKF USA Inc. is owned by its parent, .2% by private investors. (12/94 - D&B)
----
Since 1990, the SKF group has invested roughly 2 billion kroner in cost-cutting measures. (12/94)
APPARENT MARKETING STRATEGY:
Continue to be industry leader in technology and to expand its market. (3/94)
ASSESSMENT OF STRENGTHS:
Manufactures specialty bearings. (3/94)
ASSESSMENT OF WEAKNESSES:
FUTURE OUTLOOK:
Financial condition is good. (12/94 - D&B)
----
When new-capacity investment resumes, sights will be set on a bigger prize: mainland China. (3/94 -
International Management Magazine)
----
Technological advance is not over, and SKF has protected its research and development against the squeeze. It
is especially optimistic that "intelligent" bearings, which feed information back to the machinery that drives
them, will find a wider application following their successful debut in automotive anti-lock braking and traction
control systems.
The company aims gradually to distance itself from downstream cycles by finding new, higher value-added
customers in machinery and aerospace and expanding in the U.S. and Asia, where greater regional self-supply
should also afford protection from currently movements. (3/94 - International Management Magazine)
LAST D&B: SKF USA Inc. = 12/13/94
LAST PROFILE REVIEW/UPDATE: Added News 8/29/2000
DUNS (D&B NUMBER); SKF USA Inc. = 00-229-7661
SIC (CODES): SKF USA Inc. = 3562 3053 3829
TIMKEN COMPANY, THE. - NEWS
June 30, 2000
21FBNEWS
http://www.timken.com/
ACCELERATES E-BUSINESS STRATEGY WITH ENHANCED DISTRIBUTOR AND CUSTOMER SITE
6/30/00
On June 22, 2000, The Timken Company announced they recently expanded distributor and customer access to key
business information through its Timken Direct(SM) extranet site ( www.direct.timken.com ).
The site offers bearing distributors and steel customers real-time, 24-hour access to product specifications and
availability, as well as order placement and status. The site is now available in multiple languages to more than 1,000
original equipment customers and independent distributors in the U.S., Canada, Mexico and several European
countries. The company has plans for continued expansion to other distributors and customers around the world.
Functions for bearing distributors include product availability, price and order placement. The system also has customer
inventory management capabilities. The site is available to registered customers through any Internet Web browser.
(6/22/00 PRNewswire)
TIMKEN REACTS TO TERMINATION OF ANTIDUMPING ORDERS ON TAPERED ROLLER BEARINGS
6/15/00
On June 2, 2000 The Timken Company reacted strongly to a vote by the U.S. International Trade Commission (ITC)
to revoke antidumping duty orders on imports of tapered roller bearings from Japan, Romania and Hungary. The
Commission determined that the domestic tapered roller bearing industry was not likely to be materially injured due to
dumping by these countries. The Commission upheld the antidumping duty order against China.
Timken states they have no intention of reacting passively as the U.S. industry is seriously injured by any continuous
dumping activities. Accelerated dumping as a result of this ruling could negatively impact U.S. bearing markets. U.S. law
provides U.S. producers the right to seek expedited investigations where an order is revoked and imports surge.
Timken will be monitoring trade flows and will not hesitate to protect the interests of their associates, shareholders,
communities and customers. If the Commission's view of the future proves wrong, Timken will be back before the
commission immediately.
The Commission separately extended the antidumping duty orders on ball bearings from Germany, France, Japan and
several other countries. (6/2/00 PRNewswire)
TIMKEN JOINS LEADING AUTOMOTIVE SUPPLIERS TO IDENTIFY E-BUSINESS SOLUTIONS 6/15/00
On June 7, 2000, The Timken Company announced they had recently joined leading automotive suppliers in a study of
business-to- business Internet-enabled technologies.
The group includes Dana Corporation, Delphi Automotive Systems Corporation, Eaton Corporation, Motorola Inc.,
TRW Inc., and Valeo S.A. The companies plan to address technology issues facing the industry and identify business-
to-business technology solutions.
Timken believes that this joint effort will complement the initiatives of both their original equipment and independent
aftermarket customers. It will likely enable rapid development of systems and standards to significantly improve supply-
chain management, customer support initiatives and aftermarket activities. Timken is confident that significant
opportunities exist to improve the business processes between themselves and both their customers and suppliers.
These opportunities include reduction of costs through common approaches and improved velocity of all interactions
from product concept to delivery. (6/7/00 PRNewswire)
ADDS REPFORCE AS AUTOMOTIVE AFTERMARKET SALES AGENCY 6/15/00
On June 8, 2000, The Timken Company announced it will continue its aftermarket sales agency agreement with
Repforce of Aston, Pennsylvania. Repforce represents the complete line of Timken automotive products to customers in
Delaware, District of Columbia, Eastern Pennsylvania, Maryland and Southern New Jersey.
Timken has expanded its product offering to include a full-line of bearings and seals and has signed sales agencies to
advance the company's market penetration. (6/8/00 PRNewswire)
REPORTS FIRST QUARTER RESULTS, SALES VOLUME INCREASES 4/30/00
On April 18, 2000, The Timken Company reported first quarter results.
Bearings Business Results:
New products in the marketplace, recovering North American industrial markets, modest strengthening in Asia and
Europe and continued strong demand in North American automotive markets all combined to drive Bearings' net sales
to a record level. Bearings first-quarter net sales were $470.4 million compared to $438.7 million one year ago.
Earnings before interest and taxes (EBIT) also increased to their highest level since the first half of 1998. EBIT was
$32.1 million, compared to $23.2 million in the 1999 first quarter. Bearings' results included $3.5 million in restructuring
charges primarily related to the consolidation of its distribution network in Europe, which was announced in January,
and its realignment into global business units. (4/18/00 PRNewswire)
ACCELERATES ACTIONS TO IMPROVE PROFITABILITY AND GROWTH 3/15/00
On March 2, 2000, The Timken Company announced an acceleration of its global restructuring to position the company
for profitable growth, streamline operations, reduce costs and improve European profitability. This restructuring is
expected to save the company approximately U.S. $35 million annually before taxes by the end of 2001.
Implementation, employee severance and non-cash impairment charges of U.S. $55 million before taxes are expected
over the next year. The excess global industry capacity and continued pricing pressure reinforce the need for change.
Over the past 18 months, Timken has closed manufacturing operations in Australia and refocused operations in South
Africa. These and other efforts resulted in reductions of nearly 1,700 positions. The restructuring announced today will
further consolidate global operations and will eliminate 600 additional positions worldwide.
The company's bearing manufacturing facility in Duston, England will be refocused to specialize and fuel growth in
advanced automotive bearings, roller production and formed products, reflecting currently strong automotive demand.
The restructuring is expected to reduce the Duston site workforce of approximately 1100 to about 800.
The Western European restructuring will increase manufacturing at lower cost facilities in Eastern Europe. Timken plants
in Poland and Romania will significantly expand production by the end of 2001. (3/2/00 - PRNewswire)
STRENGTHENS EUROPEAN DISTRIBUTION 1/31/99
On January 20, 2000, The Timken Company announced steps to improve significantly its ability to serve customers in
Europe.
To improve their ability to provide products to customers on a timely basis, maximize inventory and safety stocks and
streamline shipping and transportation, Timken will transfer distribution activities from their existing facilities to a central
warehouse operated by an external service provider, FDX Supply Chain Services (according to their web site, name
has been changed to FedEx Supply Chain Services) in Strasbourg, France.
During 2000, distribution activities will be moved from the existing warehousing and shipping facilities in Haan
(Germany), Daventry (England), Les Ulis (France), Colmar (France) and Brescia (Italy) to Strasbourg (France). This
initiative is estimated to reduce employment at the facilities by approximately 60. The existing sales offices at all the
locations will continue providing service to customers. In the U.K., a smaller warehouse facility will be established to
serve local requirements.
For the past 18 months, the company has been rationalizing operations worldwide. It has closed facilities and shifted
production among others to increase customer service and manufacturing efficiencies.
The Timken Company is a leading international manufacturer of highly engineered bearings and alloy steels with
operations in 25 countries. The company employs nearly 21,000 people worldwide and reported 1999 sales of $2.5
billion. (1/20/00 PRNewswire)
REPORTS PROFITABLE 1999 1/31/00
On January 20, 2000, The Timken Company reported that they maintained profitability in 1999 and offset longer-than-
expected weaknesses in many markets and regions of the world. Although sales and earnings were down from a year
ago, successful growth initiatives, ongoing rationalizations, and a strong automotive market keyed results.
Bearings Results: In Bearings, global industrial weakness lowered net sales for the year to $1.76 billion, down from
1998's $1.8 billion. For the fourth quarter, sales were $446 million, compared to $450 million in the year-ago period.
As a result of excess bearing industry capacity in Asia, there was downward pressure on prices.
Countering the strength in global automotive markets was the continued weakness in industrial, North American rail,
aerospace and distribution markets. These weaknesses resulted in lower production levels and a less favorable product
mix. These factors, along with substantial inventory reductions and exchange rate changes, contributed to weaker
performance in the company's European operations. (1/20/00 PRNewswire)
REORGANIZES TO ACCELERATE GLOBAL GROWTH 11/30/99
On Nov. 18, 1999, Following a special meeting of its Board of Directors, The Timken Company announced that it will
reorganize its businesses to sharpen market and customer focus and support the company's strategy for accelerated
global growth.
Reportedly, the reorganization will allow Timken to more rapidly pursue global growth strategy by aligning their
businesses with key industries worldwide. At the same time, Timken will strengthen customer focus, streamline
operations and reduce costs
The reorganization will shift the operational focus from geographic regions to four global industry segments: automotive,
industrial, aerospace and rail. (11/18/99 - PRNewswire)
INTRODUCES NEW AFTERMARKET PRODUCT PACKAGING 11/15/99
On November 10, 1999, The Timken Company introduced a new design for its aftermarket product packaging to
accommodate a growing global product offering. All Timken products will begin to be packaged in the same style
carton as previously used but with new graphics. The transition will be completed by the end of 2000.
In recent years, the company has expanded its product offering with additional lines of tapered roller bearings, other
anti-friction bearings and related components. The new design is part of a larger system to create a family look to
Timken's product offering that emphasizes the Timken brand and is more easily recognizable in the marketplace
The new design builds on the familiar elements of the previous packaging including the black and orange color
combination and the prominent Timken logo. It now also offers a more modern look that can accommodate sub-
branding. (11/10/99 - PRNewswire)
REPORTS THIRD QUARTER RESULTS 10/15/99
On October 18, 1999, Timken announced that persistent global market weakness and continuing soft demand for
higher margin products affected third quarter sales and earnings. While automotive markets were strong, industrial and
energy markets remained depressed. The third quarter normally is the weakest of the year, due to customer demand
patterns.
For the third quarter, net sales were $601.7 million, slightly below 1998's third quarter of $616.8 million. For the first
nine months of 1999, net sales were $1.863 billion, trailing the record $2.026 billion in 1998's corresponding period.
Third quarter net income totaled $12.4 million versus $13.6 million in the year-earlier period. For the first nine months,
net income was $41.3 million, compared to $101.4 million a year ago. This disparity was due largely to a very strong
first half in 1998.
Bearings Results: In Bearings, third quarter net sales were $423.7 million, up from $415.1 million in 1998's third
quarter. For the first nine months, net sales were $1.314 billion, down slightly from $1.348 billion in 1998. While
railroad and industrial markets, including aerospace, were weak, automotive markets were strong. In the third quarter,
European and Asia Pacific markets showed some signs of improvement from the low activity levels during the first half
of the year. 10/18/99 - PRNewswire)
SECOND QTR. AND YTD BEARINGS' RESULTS DOWN 7/31/99
On July 19, 1999, Timken reported second quarter and first half 1999 results. For their Bearings business, second
quarter net sales were $451.4 million, down from last year's $469.8 million. For the first half, sales were $890.2 million,
compared to $932.6 million in 1998's corresponding period. Strong sales in North American automotive and truck
markets have not been sufficient to entirely offset the ongoing weakness in industrial markets around the world. While
Asia Pacific markets continue to show some strengthening, economic weakness persists in Europe and Latin America.
Lower sales volume and less efficient production levels, along with a less favorable product mix, were key factors in
reducing performance. Simultaneously, Bearings moved aggressively on inventory levels, reducing them by more than 10
percent. (7/19/99 - PRNewswire)
SECURES GRANT FROM THE U.S. DEPARTMENT OF ENERGY FOR THE DEVELOPMENT OF A NEW
STEEL GAUGING SYSTEM 7/15/99
The United States Department of Energy recently awarded a grant of $1.4 million to The Timken Company for the
development of a new steel gauging system that will utilize laser technology to make the manufacturing process for
seamless mechanical steel tubing more efficient. The grant will fund 60 percent of the total cost of the new technology,
projected at $2.4 million.
The laser-based system measures the product to ensure that steel tubes are produced at near exact shape, eliminating
excess material from the tube wall. The new technology will further enhance the world-leading quality of Timken steel by
producing tubing at even tighter tolerances and with a more uniform wall thickness. (6/30/99 - PRNewswire)
CLOSES DEAL TO BUY TISCO'S INTEREST IN TATA TIMKEN LIMITED IN INDIA 3/99
On March 15, 1999, The Timken Company completed the transaction to increase its stake in Tata Timken Limited, in
Jamshedpur, India, to 80 percent by acquiring the 40 percent stake held by The Tata Iron and Steel Company
(TISCO) of India for 1.18 billion rupees (equivalent U.S. $27.8 million).
The plant makes tapered roller bearings for trucks, farm tractors and industrial applications. The operation also
produces AP cartridge bearings for rail applications. (3/15/99 - PRNewswire)
TO BUY TISCO'S INTEREST IN TATA TIMKEN LIMITED IN INDIA 2/99
On February 27, 1999, The Timken Company agreed to increase its stake in Tata Timken Limited, in Jamshedpur,
India, to 80 percent by acquiring the 40 percent stake currently held by The Tata Iron and Steel Company (TISCO) of
India. The completion of the transaction is subject to final approvals from Indian government authorities.
Increasing Timken's ownership will broaden the venture's customer base and thus strengthen its position in both
domestic Indian markets and Timken's worldwide markets. The investment is part of Timken's global strategy to
capitalize on core competencies to grow profitably and increase shareholder value.
Upon completion of the transaction and pending final government approval, Tata Timken will operate as Timken India, a
subsidiary of The Timken Company. The Indian public will continue to hold the remaining 20 percent equity in the
venture.
The Timken Company invested $48 million on research and development in 1998 with approximately three-fourths of
that total being spent on bearing R&D. The formation of Timken Engineering and Research - India in Bangalore in
October 1998 continued that commitment, bringing the company's technical resources closer to customers in that part of
the world.
The agreement to create Tata Timken, The Timken Company's first joint venture, was signed in 1987. Production
started in the newly constructed Tata Timken plant in 1992. The operation uses cellular manufacturing, which provides
the flexibility to produce parts with short lead times. The plant currently makes single-row tapered roller bearings for
trucks, farm tractors and industrial applications. The operation also produces AP cartridge bearings for rail applications.
The Timken Company (http://www.timken.com) is a leading international manufacturer of highly engineered bearings
and alloy steels with operations in 25 countries. The company employs 21,000 people worldwide and reported 1998
sales of more than U.S. $2.6 billion. (2/27/99 - PRNewswire)
BEARING BUSINESS RESULTS FOR 4TH QTR. AND 1998 1/99
In Timken's the Bearing Business, net sales for 1998 were $1.8 billion, a modest increase from 1997's $1.72 billion.
For the fourth quarter, sales were $450 million, up slightly from $442.3 million in the year-earlier period. North
American markets for light and heavy trucks and locomotives and freight cars remained strong. However, U.S. markets
for certain industrial products remained weak, and demand in Asia stayed at a low ebb.
Operating income for 1998 totaled $144 million compared to $156.3 million in 1997. For the fourth quarter, operating
income was $21.4 million. Excluding the pre-tax expense, operating income would have been $40.4 million, same as in
the year-ago period.
In the fourth quarter, the company introduced the Timken IsoClass(TM) brand of metric tapered roller bearings. This
product line gives the company a much stronger position in the metric market that accounts for nearly half of worldwide
tapered roller bearing consumption.
Information on Timken is available via the internet, at http://www.timken.com/ (1/21/99 - PRNewswire)
INTRODUCES TIMKEN ISO CLASS METRIC BEARINGS 10/98
On October 2, 1998, The Timken Company introduced its new Timken(R) IsoClass(TM) line of metric 30000 series
tapered roller bearings at a special meeting with its authorized bearing distributors in Europe.
For decades, Timken has been the world leader in the manufacture of inch- based tapered roller bearings. While metric-
sized bearings were an important part of its standard line, this new initiative is designed to make Timken an even more
formidable source of metric product.
Since 1996, Timken has invested $60 million in new plants and people, including facilities in Italy, Poland and eight other
countries, to support the IsoClass tapered roller bearing product line. The result is a selection of more than 170 part
numbers that cover the full spectrum of metric bearings, including both a line of flanged IsoClass bearings and a
customized line of IsoClass bearings to facilitate modifications to meet special application requirements.
Timken has also invested more than a half million hours in developing new designs and performance testing. Reportedly,
every IsoClass bearing, no matter where in the world it is manufactured, meets Timken's stringent worldwide quality
requirements.
Although the United States market largely uses inch-based bearings, nearly half the world's tapered roller bearing
market is metric. Today's product launch will be followed with events in the US, Asia and Latin America to mark the
product's worldwide debut.
The Timken Company is a leading international manufacturer of highly engineered bearings and alloy steels. The
company employs 21,000 people worldwide and reported 1997 sales of more than U.S. $2.6 billion. (10/2/98 -
PRNewswire)
REFOCUS IN AUSTRALIA WITH GREATER EMPHASIS ON SALES AND MARKETING 9/98
On September 15, 1998, as part of its ongoing initiative to increase both productivity and margins, The Timken
Company announced that Australian Timken Proprietary Limited will focus its resources on sales and service, and that
the company's bearing manufacturing operations in Ballarat will close.
The Ballarat plant will cease the majority of its manufacturing operations during the next three months. Approximately
180 of the 230 employees at Australian Timken will be directly affected. The distribution warehouse in Ballarat,
remanufacturing operations and sales offices, located in five cities around the country, will continue to operate as integral
parts of the company.
According to Timken, demand for automotive products in Australia has been declining and customer demands in recent
years have changed substantially for key product segments. Although we were able to slow the rate of decline in the
past by developing export markets in areas such as Korea and Japan, future prospects and the current economic
climate have adversely and significantly affected this business.
Timken claims they can more efficiently supply the Australian market from their existing international operations and
achieve greater utilization of corporate capacity worldwide to serve expanding international tapered roller bearing
markets.
The company expects to book a $5 million to $7 million pre-tax charge in the fourth quarter as a result of this action.
Cash savings generated are expected to offset the cash costs over the next two years.
Since 1990, Timken Company sales have increased more than 50 percent and earnings have more than tripled.
Changing conditions, however, in the second half of 1998 are precluding their meeting internal and external performance
expectations.
The Timken Company (www.timken.com) is a leading international manufacturer of highly engineered bearings and alloy
steels. The company employs 21,000 people worldwide and reported 1997 sales of $2.6 billion. (9/15/98 -
PRNewswire)
COMMISSIONS NEW ROLLING MILL 8/98
On August 10, 1998, The Timken Company commissioned a new $55 million rolling mill in ceremonies at its Harrison
Steel Plant in Canton.
To accommodate the new rolling mill and other processing equipment, the company added about 120,000 square feet
to the Harrison Steel Plant. The new mill will produce steel with better size and straightness characteristics and better
surface quality. Improvements in the cooling beds will result in fewer variations in hardness and microstructure, leading
to easier and better machinability.
The expansion is said to be a vital part of Timken's long-term growth strategy. Upgrading the bar and billet process at
the Harrison Steel Plant began in 1992 with the installation of a $47 million continuous caster and an $11 million state-
of-the-art inspection line.
The Harrison Steel Plant produces 1-7/8" to 6" rounds and 3" to 5-1/2" round-cornered squares. The new mill's
capacity is 700,000 tons per year, 25 percent higher than previous capacity. Roughly one-half the plant's bar output is
used by The Timken Company's tubing manufacturing operations to produce seamless mechanical tubing for bearing
races and other commercial applications. The remaining one-half is primarily alloy bars sold for critical engineering
applications.
The Timken Company is a leading international manufacturer of highly engineered bearings and alloy steels. The
company employs about 21,000 associates worldwide and reported 1997 sales of more than $2.6 billion. (8/10/98 -
PRNewswire)
AWARDED AUTOMOTIVE INDUSTRIES QUEST FOR EXCELLENCE AWARD 7/98
The Timken Company was recently named as recipient of Automotive Industries' first annual Quest for Excellence
award. Timken was the top-ranked company in the bearing category receiving the highest overall average. Another 67
companies were recognized in 19 different categories.
Automotive Industries, with a circulation of 104,000, is published monthly by Cahners Business Information. The
magazine's editorial focuses on the domestic and international original equipment vehicle industry.
The awards were a result of the study of 1,800 Automotive Industries readers involved in design, engineering,
manufacturing, purchasing and management who rated the suppliers they use on a regular basis. Each participant ranked
supplier companies in five areas: quality -- consistently meets or exceeds customer's standards; price -- meets or
exceeds the target pricing requirements; innovation -- suggests innovative concepts and solutions; delivery -- provides
consistent, dependable delivery of materials, and service -- responds quickly and effectively to customer requests. If a
supplier was not mentioned by enough Automotive Industries readers, then they were not eligible for the award
regardless of the score attained.
The Timken Company is a leading international manufacturer of highly engineered bearings and alloy steels. The
company employs 21,000 people worldwide and reported 1997 sales of more than U.S. $2.6 billion. (7/30/98 -
PRNewswire)
1997 BEARING BUSINESS REVIEW 2/98
During 1997, the Bearing Business grew through expansions, the launch of new products and services, and acquisitions.
More than $80 million will be invested over the next five years in new bearing technology for the Asheboro, North
Carolina, Bucyrus, Ohio, and Gaffney, South Carolina plants. Acquisitions during the year included bearing
manufacturing and service operations in Italy, Romania, the United Kingdom and the United States. The company also
announced that it was expanding its railroad reconditioning capabilities internationally, with initial focus in Great Britain
and Mexico. In the fourth quarter, the Business also sold property connected with a previous plant closing in the United
Kingdom, which positively affected other income.
Net sales for 1997 were $1.719 billion, up 7.6 percent from $1.598 billion in 1996. The increase was fueled by strong
North American sales, particularly to light truck, heavy truck and industrial original equipment manufacturers.
Also contributing to the record year were strong demand for value-added sensor bearings for light trucks, and other
newly introduced products such as a line of automotive bearings and related components for the do-it-yourself
aftermarket; increases in the sale of aerospace bearings; additional export sales to Latin America; sales contributions
from recently acquired businesses, and a general strengthening of sales to European manufacturers. Sales in the Asia
Pacific markets, still a small part of the company's total operations, weakened significantly toward year end due to the
severe economic problems the area is experiencing.
For 1997, operating income in the Bearing Business grew to $163.3 million, an increase of 5.2 percent from $155.2
million in 1996. Higher sales volume and manufacturing cost reductions resulting from ongoing continuous improvement
initiatives contributed to the growth in profits. Three factors dampened profitability: an inventory write-down related to
the 1997 physical inventory, compared to a write-up in the year-earlier period; costs associated with integrating new
acquisitions, and higher product costs associated with the exceptional levels of customer demand. These factors are
expected to have a smaller impact in 1998. (1/21/98 - PRNewswire)
ACQUIRES ROMANIAN BEARING MAKER 12/97
On December 17, 1997, the Timken Company signed a definitive agreement to acquire a bearing manufacturer in
Romania. Rulmenti Grei S.A., located 40 miles (60 km) north of Bucharest in Ploesti, produces bearings used in a wide
range of industrial applications, including steel and aluminum rolling mills, paper mills, marine systems, and oil and gas
production. In addition to serving customers in Romania, Rulmenti Grei S.A. exports to customers in Eastern and
Western Europe, Asia and North America.
Rulmenti Grei S.A. has been 70 percent owned by Romania's State Ownership Fund and 30 percent by private
investment groups and individuals. Timken is paying $37 million for the 70 percent owned by the government.
However, Romania's privatization process returns 60 percent of the purchase price back into the development of the
firm.
Timken plans to strengthen Rulmenti Grei by introducing advanced technology and manufacturing processes. Over the
next five years, Timken will match the Romanian privatization reinvestment in the enterprise to establish Ploesti as a
major technical center for the design and manufacture of bearings for industrial applications. The output will be
substantially above the current level.
Rulmenti Grei was built in 1979 and employs some 1,000 people. It manufactures over 1,200 types and sizes of
bearings, including tapered, cylindrical, spherical and ball bearings. The Timken Company employs some 19,000
people worldwide and reported 1996 sales of more than $2.4 billion. (12/17/97 - PRNewswire)
BREAKS GROUND FOR NEW ROLLING MILL IN CANTON, OHIO 4/97
On April 8, 1997, Timken held a groundbreaking ceremony for a new rolling mill at its Harrison Steel Plant located in
Canton, Ohio. This mill is part of a $55 million investment that also includes bar processing equipment. Of the plant's
bar output, roughly one-half is used by Timken's tubing manufacturing operations to produce seamless mechanical tubing
for bearing races and other commercial applications. The remaining one-half is primarily alloy bars sold for critical
engineering applications. The mill is expected to be fully operational by mid-1998.
The Timken Company is a leading international manufacturer of highly engineered bearings and alloy steels. The
company employs some 19,000 associates worldwide and reported 1996 sales of about $2.4 billion. (4/8/97 - PR
Newswire)
COMPLETES ACQUISITION OF GNUTTI CARLO SPA 2/97
The Timken Company today (2/21/97) completed the acquisition of Gnutti Carlo S.p.A., a European manufacturer of
tapered roller bearings located near Brescia in Northern Italy.
The business will be operated by Timken Italia, S.r.l., a Timken Company subsidiary. The Italian plant, established in
1922, serves primarily the European truck, railroad and industrial markets. Its bearing sales in 1996 approached $20
million.
This facility in Italy will complement existing Timken plants in England, France and Poland and enable Timken to offer a
broader range of tapered roller bearing products. Timken Italia also operates an engineering and sales office in Milan.
(2/21/97 - PR Newswire)
OCTOBER 1996, TIMKEN ANNOUNCES $30M EXPANSION AND NEW FACILITY PLANS 1/97
On October 14, 1996, Timken Co. reported it plans to invest $30 million to expand its steel manufacturing capability
and increase its product lines. The investments include a $15 million profile ring mill in Columbus, North Carolina, that
will produce shaped rings for the bearing industry.
The company said it will also build a $15 million hot-forming facility to make forged bearing components from Timken
steel bars. A site for the facility has not been found, as of this date. (10/14/96 - Reuters News Release)
TIMKEN CLOSE TO DEAL FOR ITALIAN COMPANY, GNUTTI CARLO SPA 1/97
According to an October 18, 1996, news release, Timken Co. said it was close to completing negotiations to acquire
the tapered rolling bearing business of the Italian company Gnutti Carlo SPA. Gnutti Carlo's bearing business serves
primarily the truck, railroad and construction equipment markets. Reportedly, Gnutti's 1995 sales for the bearing
business approached $25 million. Gnutti Carlo is located near Brescia in northern Italy. (10/18/96 - Reuter News
Release)
TO OPEN DESIGN AND SALES CENTER IN BEIJING, CHINA 1/97
On November 25, 1996, Timken announced that it was opening a product design and sales center in Beijing, China, as
part of its strategy to serve an increasingly important region.
According to Timken, China represents a truly significant market, one they think they are particularly well-suited to
serve. The new Beijing facility, coupled with their recently announced joint venture in China, are two central elements of
their strategy to expand the delivery of Timken products and services in the Pacific Rim region.
With a design and sales team located in Beijing, Timken foresees a significant increase in business in this rapidly growing
region. Reportedly, this new office will enable Timken to better identify the needs of customers and distributors in China
and to serve them in a more complete and timely manner. (11/25/96 - PR Newswire)
JOINT VENTURE IN CHINA 6/96
The Timken Company, Canton, Ohio, recently entered into a joint venture to produce bearings in China. Timken and
Shandong Yantai Bearing Factory will combine to form the new company. (7/96 - OEM Off-Highway Magazine)
NEW GROUPS ESTABLISHED TO STRENGTHEN SALES AND MARKETING EFFORTS 5/96
The Timken Company established a new Automotive Business Group to further strengthen its sales and marketing
efforts among manufacturers, automotive wholesalers and heavy-duty distributors.
Reportedly, Timken sees an opportunity to contribute significantly to higher performance for its customers by integrating
manufacturing, marketing and distribution under one organization. "Furthermore, the consolidation of our sales and
marketing efforts from original equipment manufacturers, their service businesses and automotive and heavy-duty
distributors will allow us to focus on the entire spectrum of the automotive marketplace." (5/96 - Truck Parts & Service
Magazine)
Timken has also established an Industrial Business Group to strengthen its sales and marketing efforts with original
equipment manufactures and aftermarket distribution. (5/96 - Today's Distribution Magazine)
ACQUIRES POLISH MANUFACTURER OF TAPERED ROLLER BEARINGS 2/96
Timken announced it will acquire the assets of the tapered roller bearing business of FLT Prema Milmet S.A. based in
Sosnowiec, Poland.
FLT Prema Milmet S.A. is located 200 miles (300 km) south of Warsaw, Poland. Its bearing division employs 800
and had sales of about $17 million in 1995. Another source claimed sales were $12-15 million per year. Bearings
produced at the facility are used in applications that include automotive, agricultural equipment, and industrial machinery.
Timken is counting on supplying Polish-made bearings to Fiat, General Motors, and Daewoo in Poland as it is doing in
other markets.
Timken is paying $12.5 million for the plant, has agreed to invest $10 million in it over the next few years, and is to
spend an additional $1 million on environmental protection. The acquisition provides accelerated growth opportunities
in the markets of central Europe. After completion, the new company will be called Timken Poland Ltd. and will be a
wholly owned subsidiary of The Timken Company. (Jan./Feb., 1996 - Various News Releases)
RECEIVES 1994 SHINGO PRIZE 7/94
Timken received the 1994 Shingo Prize for its bearing plant in Gaffney, SC. The award recognizes achievement in
manufacturing processes, quality enhancement, improved productivity, and customer satisfaction. (7/94 - OEM Off-
Highway Magazine)
ONE BILLION DOLLAR CAPITAL EXPANSION PROGRAM PLANNED 4/92
Despite a very rough year in 1991, Timken is going forward with its aggressive, worldwide, $1 billion dollar capital
expansion program. Since European customers can't be served efficiently by exports from the U.S., for example,
Timken recently selected a site in Germany for a new, $40 million dollar plant which would expand its offerings in the
industrial (non-automotive) bearings market. (4/10/92 - Value Line Report)
TO SCALE BACK CAPITAL SPENDING PLANS 7/91
In recognition of current economic realities, Timken's aggressive capital spending plans ($1 billion over the next few
years) will probably be scaled back by 10% to 20% this year, particularly in troubled Brazil. (7/12/91 - Value Line
Report)
ONE BILLION DOLLARS CAPITAL INVESTMENT PROGRAM UPDATE 4/91
In our 10/90 report, we indicated Timken would build a $23M bearing plant in Virginia as a part of their billion dollar
capital investment program.
Timken has now committed about half of the $1 billion it plans to spend over the next few years to expand and improve
its production facilities. The latest announcement revealed plans to spend $200M for two new bearings plants, one in
North Carolina and another at a European sight, yet to be selected, with a 1993 start-up in view. (4/12/91 - Value Line
Report)
TORRINGTON CO. - NEWS
July 31, 1999
22AJNEWS
http://www.torrington.com
SECOND QTR. 1999 BEARINGS SALES DOWN 7/31/99
July 22, 1999, Ingersoll-Rand Company reported second quarter 1999 results.
The Engineered Products Segment includes Torrington and Fafnir bearings and components. Bearings and
components sales were down slightly because of continued weakness in industrial bearings. Operating income and
margins improved because of strong sales from the needle bearings business. (7/22/99 - Business Wire)