MIRA INFORM REPORT
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Report Date : |
01.07.2013 |
IDENTIFICATION DETAILS
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Name : |
THE TIMKEN COMPANY |
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Registered Office : |
1835 Dueber Avenue SW, Canton, OH 44706 |
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Country : |
United States |
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Date of Incorporation : |
16.12.1904 |
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Legal Form : |
Public Company |
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Line of Business : |
Manufactures, markets, and sells anti-friction bearings and
assemblies, alloy steels, and mechanical power transmission systems |
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No. of Employees : |
19,769 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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United States |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
UNITED STATES - ECONOMIC OVERVIEW
The US has the largest and most technologically powerful
economy in the world, with a per capita GDP of $49,800. In this market-oriented
economy, private individuals and business firms make most of the decisions, and
the federal and state governments buy needed goods and services predominantly
in the private marketplace. US business firms enjoy greater flexibility than
their counterparts in Western Europe and Japan in decisions to expand capital
plant, to lay off surplus workers, and to develop new products. At the same
time, they face higher barriers to enter their rivals' home markets than
foreign firms face entering US markets. US firms are at or near the forefront
in technological advances, especially in computers and in medical, aerospace,
and military equipment; their advantage has narrowed since the end of World War
II. The onrush of technology largely explains the gradual development of a
"two-tier labor market" in which those at the bottom lack the
education and the professional/technical skills of those at the top and, more
and more, fail to get comparable pay raises, health insurance coverage, and
other benefits. Since 1975, practically all the gains in household income have
gone to the top 20% of households. Since 1996, dividends and capital gains have
grown faster than wages or any other category of after-tax income. Imported oil
accounts for nearly 55% of US consumption. Crude oil prices doubled between
2001 and 2006, the year home prices peaked; higher gasoline prices ate into
consumers' budgets and many individuals fell behind in their mortgage payments.
Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more
than doubled in the same period. Besides dampening the housing market, soaring
oil prices caused a drop in the value of the dollar and a deterioration in the
US merchandise trade deficit, which peaked at $840 billion in 2008. The
sub-prime mortgage crisis, falling home prices, investment bank failures, tight
credit, and the global economic downturn pushed the United States into a
recession by mid-2008. GDP contracted until the third quarter of 2009, making
this the deepest and longest downturn since the Great Depression. To help
stabilize financial markets, in October 2008 the US Congress established a $700
billion Troubled Asset Relief Program (TARP). The government used some of these
funds to purchase equity in US banks and industrial corporations, much of which
had been returned to the government by early 2011. In January 2009 the US
Congress passed and President Barack OBAMA signed a bill providing an
additional $787 billion fiscal stimulus to be used over 10 years - two-thirds
on additional spending and one-third on tax cuts - to create jobs and to help
the economy recover. In 2010 and 2011, the federal budget deficit reached
nearly 9% of GDP. In 2012 the federal government reduced the growth of spending
and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required
major shifts in national resources from civilian to military purposes and
contributed to the growth of the budget deficit and public debt. Through 2011,
the direct costs of the wars totaled nearly $900 billion, according to US
government figures. US revenues from taxes and other sources are lower, as a
percentage of GDP, than those of most other countries. In March 2010, President
OBAMA signed into law the Patient Protection and Affordable Care Act, a health
insurance reform that will extend coverage to an additional 32 million American
citizens by 2016, through private health insurance for the general population
and Medicaid for the impoverished. Total spending on health care - public plus
private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the
president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act,
a law designed to promote financial stability by protecting consumers from
financial abuses, ending taxpayer bailouts of financial firms, dealing with
troubled banks that are "too big to fail," and improving
accountability and transparency in the financial system - in particular, by
requiring certain financial derivatives to be traded in markets that are
subject to government regulation and oversight. In December 2012, the Federal
Reserve Board announced plans to purchase $85 billion per month of
mortgage-backed and Treasury securities in an effort to hold down long-term
interest rates, and to keep short term rates near zero until unemployment drops
to 6.5% from the December rate of 7.8%, or until inflation rises above 2.5%.
Long-term problems include stagnation of wages for lower-income families,
inadequate investment in deteriorating infrastructure, rapidly rising medical
and pension costs of an aging population, energy shortages, and sizable current
account and budget deficits - including significant budget shortages for state
governments.
|
Source
: CIA |
Company name: THE TIMKEN COMPANY
Address: 1835 Dueber Avenue SW, Canton, OH
44706 - USA
Telephone: +1
330-438-3000
Fax: +1 330-438-6006
Website: www.timken.com
Corporate ID#: 26206
State: Ohio
Judicial form: Public Company (NYSE = TKR)
Date incorporated: 12-16-1904
Stock: 200,000,000
shares common
20,000,000 shares preferred
Value: -
Name of manager: James
GRIFFITH
Business:
The Timken Company develops, manufactures, markets, and sells
anti-friction bearings and assemblies, alloy steels, and mechanical power
transmission systems.
It operates through four segments: Mobile Industries, Process
Industries, Aerospace and Defense, and Steel.
The Mobile Industries segment provides bearings, mechanical power
transmission components, drive- and roller-chains, augers, and related products
and services to original equipment manufacturers (OEMs) and suppliers of
passenger cars, light trucks, medium and heavy-duty trucks, rail cars,
locomotives, and agricultural, construction, and mining equipment, as well as
to automotive and heavy truck aftermarket distributors.
The Process Industries segment offers bearings, mechanical power
transmission components, industrial chains, and related products and services
to OEMs and suppliers of power transmission, energy, and heavy industries
machinery and equipment. It also serves the aftermarket through its network of
industrial distributors.
The Aerospace and Defense segment provides bearings, helicopter
transmission systems, rotor head assemblies, turbine engine components, gears,
and other precision flight-critical components for commercial and military
aviation applications; and offers aftermarket services, including repair and
overhaul of engines, transmissions, and fuel controls, as well as aerospace
bearing repair and component reconditioning. It also manufactures precision
bearings, higher-level assemblies, and sensors for manufacturers of health and
positioning control equipment.
The Steel segment produces approximately 450 grades of carbon and alloy
steel products, including ingots, bars, and tubes in various chemistries,
lengths, and finishes for the automotive, industrial, and energy sectors. The
company sells its products through its sales organizations and authorized
distributors worldwide.
The Timken Company was founded in 1899 and is headquartered in Canton,
Ohio.
Timken serves 27 countries through more than 50 manufacturing
facilities,
9 technology and engineering centers, and 14 distribution centers and
warehouses. About 66% of sales come from the US.
On June 10, 2013, Timken Co. announced that its Board of Directors has
formed a Strategy Committee to evaluate a potential separation of the company's
steel business from its other businesses and to review the company's corporate
governance and capital allocation strategy.
The formation of the Committee is in response to the non-binding
shareholder proposal that was recently approved at the company's 2013 Annual
Meeting of Shareholders. The Committee consists of all independent and
non-Timken family Board members, with Joseph W. Ralston, the company's lead
director, serving as its chairman. The Committee has retained Goldman, Sachs
& Co. to assist in its evaluation.
EIN: 34-0577130
Staff: 19,769
Operations & branches:
At above address, we find
the corporate office, owned.
Shareholders:
72% of the stock is held by institutional and mutual fund ownets,
including:
|
SYSTEMATIC FINANCIAL MANAGEMENT, L.P. |
3.55% |
|
VANGUARD GROUP, INC. (THE) |
3.32% |
|
BLACKROCK INSTITUTIONAL TRUST COMPANY, N.A. |
2.48% |
|
PUTNAM INVESTMENT MANAGEMENT, LLC |
2.45% |
|
EARNEST PARTNERS LLC |
2.28% |
|
RAINIER INVESTMENT MANAGEMENT |
2.10% |
Management:
James W. GRIFFITH is the President and CEO.
Mr. James W. Griffith has been President and Chief Executive Officer of
Timken Co. since August 1, 2002. Mr. Griffith served as President and Chief
Operating Officer of Timken Co. since 1999. He served as Plant Manager, Group
Vice President, Bearings - North American Automotive, Asia Pacific and Latin
America at Timken Co and served as its Managing Director of Australia. He
joined Timken Company in 1984. He held a wide range of positions in several areas
of Timken Company from 1984 to 1999. He has been a Director of Goodrich Corp.
since July 15, 2002 and its subsidiary Goodrich Lighting Systems GmbH since
2002. He has been a Director of Illinois Tool Works Inc., since February 13,
2012. He serves as a Director of US-China Business Council, Inc. He also serves
as a Member of the Board of Trustees of Mount Union College and United Way of
Central Stark County. He served as a Director of Timken Co. since 1999. He
served on Board of Trustees MAPI of
Manufacturers Alliance/MAPI Inc. Mr. Griffith studied B.S. in industrial
engineering and his M.B.A. from Stanford University.
Glen A. EISENBERG is the CFO.
Subsidiaries &
Partnership: Several in the U.S. and worldwide
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Currency in |
|
Dec 31 |
Dec 31 |
Dec 31 |
Dec 31 |
|
TOTAL REVENUES |
3,141.6 |
4,055.5 |
5,170.2 |
4,987.0 |
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NET INCOME |
-134.0 |
274.8 |
454.3 |
495.5 |
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On attachment:
- 10K 2012
- 1st 10Q 2013
Banks: Bank of America
KeyBank
Legal filings
& complaints:
As of today date, there are several legal filings pending with various
Courts.
Secured debts summary (UCC):
Several
Trade references:
Date reported: May 2013
High credit: USD 25,000
Now owing: 0
Past due: 0
Last purchase: April 2013
Line of business: Office supply
Paying status: 6 days beyond terms
Date reported: May 2013
High credit: USD 25,000,000+
Now owing: 0
Past due: 0
Last purchase: April 2013
Line of business: Payroll
Paying status: As agreed
Date reported: May 2013
High credit: USD 1,600
Now owing: 0
Past due: 0
Last purchase: April 2013
Line of business: Telecommunications
Paying status: On terms
Domestic credit history:
Domestic credit history
appears as follow:
Monthly Payment Trends - Recent Activity
|
Date |
Up to 30 DBT |
31-60 DBT |
61-90 DBT |
>90 DBT |
||
|
01/13 |
$1,274,200 |
66% |
17% |
11% |
5% |
1% |
|
02/13 |
$1,658,800 |
72% |
15% |
8% |
1% |
4% |
|
03/13 |
$1,601,600 |
73% |
9% |
10% |
7% |
1% |
|
04/13 |
$1,712,000 |
81% |
12% |
4% |
2% |
1% |
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05/13 |
$1,395,300 |
69% |
20% |
7% |
1% |
3% |
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06/13 |
$1,229,700 |
78% |
13% |
4% |
3% |
2% |
National Credit Bureaus
gave a medium credit rating.
According to our credit analysts, during the last 6 months, domestic
payments were made with an average of 8 days beyond terms.
International
credit history:
Payments of imports are currently made with an average of 2 to 5 days
beyond terms.
Other comments:
The Company maintains its
business.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
The risk is medium/low.
Our opinion:
A business connection may
be conducted but we suggest you to check regularly the way of payments.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
|
1 |
Rs.91.14 |
|
Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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NB |
New Business |
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This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.