Here is why The Timken Company (TKR) stock plummeted in the after-hours on Wednesday?

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The Timken Company (TKR) shares declined 4.86% in after-hours on Wednesday, September 15, 2021, and closed the daily trading at $67.00. However, in the regular trading session of Wednesday, TKR’s stock gained 1.87%. TKR shares have risen 22.30% over the last 12 months, and they have moved down 1.51% in the past week. Over the past three months, the stock has lost 13.44%, while over the past six months, it has reduced by 17.96%.

Let’s see is there any recent news behind its recent loss?


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TKR provided an important update

On September 15, 2021, The Timken Company (TKR) announced that it expects lower sales and earnings in the second half of 2021, compared to the company’s prior expectations. Timken’s results are being impacted by unabating customer and supply chain disruptions and related manufacturing inefficiencies, as well as continued inflationary pressures across the enterprise.

Timken withdrew its full-year 2021 financial outlook and will provide further updates when it reports financial results for the third quarter of 2021.

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TKR exceptional growth in the Solar energy sector

On August 30, 2021, The Timken Company (TKR) entered the solar energy market with the acquisition of Cone Drive in 2018. Under Timken, Cone Drive has continued to build momentum with the world’s leading solar energy original equipment manufacturers (OEMs) and, as a result, has tripled its solar revenue in the past three. In 2020, the company generated more than $100 million in solar energy revenue. Timken expects double-digit revenue growth in the sector over the next three to five years.

TKR acquisition of iMS

On August 20, 2021, The Timken Company (TKR) acquired Intelligent Machine Solutions (iMS). The acquisition of iMS expands and complements Timken’s Rollon® linear motion product range with larger and heavy-duty applications, such as seventh-axis robotic transfer units (RTUs) and gantry systems.

TKR Dividend Declaration

On August 4, 2021, the board of directors of The Timken Company (TKR) declared a quarterly cash dividend of 30 cents per share. The dividend is payable on September 3, 2021, to shareholders of record as of Aug. 20, 2021.

TKR recent financial results announcement

On August 2, 2021, The Timken Company (TKR) reported its second-quarter 2021 financial results which ended on June 30, 2021.

Q2 2021 financial highlights

  • TKR reported net sales of $1.06 billion in Q2 2021 compared to $803.5 million in Q2 2020.
  • It made a gross profit of $302.3 million in Q2 2021 compared to$230.3 million in Q2 2020.
  • Selling, general & administrative expenses were $149.0 million in Q2 2021 compared to $111.8 million in Q2 2020.
  • It earned a net income of $104.8 million or $1.36 per diluted share in the second quarter of 2021 compared to a net income of $61.9 million or $0.82 per diluted share for the same period a year ago.

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Conclusion

The recent performance update was the reason behind its plummeting in the after-hours on Wednesday and we can expect it to further decline in the coming trading sessions.

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