Bearing supplier Timken Co. is only four months into its latest acquisition but already expects the move to provide pre-tax savings of $20 million by year end and $80 million by the end of 2005.
The international manufacturer of bearings, alloy and specialty steels and components in Canton, Ohio, is known for its tapered roller bearings. It acquired Torrington Co. in Torrington, Conn., in February, in large part because of its complementary needle bearings.
Tapered roller bearings are used primarily in manual transmissions, and needle bearings are used primarily in automatic transmissions.
Timken needed to pair with a company that would allow it to offer new products, technologies, modules and subassemblies.
"The acquisition positions us very well for profitable growth," says Karl Kimmerling, president of Timken's automotive business. "Our product lines are complementary. We serve the same OE customers. Our technology is synergistic - we're both in anti-friction bearings."
Timken and Torrington sell to all the major automakers, he says, and many of the larger Tier 1 suppliers, including Robert Bosch GmbH, TRW Automotive, Continental Teves, Delphi Corp., Dana Corp. and American Axle & Manufacturing.