The Timken Co. Q1 2008 Earnings Call Transcript

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2008-04-30 18:26:07.0

Tags: Timken Co.

Question-and-Answer Session

[Operator Instructions]. Your first question comes from the line of Eli Lustgarten of Longbow Securities.

Eli Lustgarten - Longbow Securities

Thank you.

Glenn A. Eisenberg - Executive Vice President of Finance and Administration

Good morning Eli.

Eli Lustgarten - Longbow Securities

Nice quarter, very impressive. A couple of clarifications; one, can you give us the impact of foreign currency, both on top line and bottom line and the actual numbers for the contribution of the various... of the two acquisitions and divestiture?

Glenn A. Eisenberg - Executive Vice President of Finance and Administration

Yes, Eli. Currency for the quarter call it around, it was around $50 million of our revenues. So it accounted for roughly a third of the top line growth. The acquisitions that we had during the quarter of Purdy and BSI are the full impact of the quarter was essentially offset by the decline that we had by exiting our Desford operation. So, the net between the two was effectively zero, so it had no impact on year-over-year on the top line. And as far as bottom line we leveraged reasonably well, the currency we don't give out specific levels within the EBIT number.

Eli Lustgarten - Longbow Securities

But the currency is clearly contributed to the earnings number?

Glenn A. Eisenberg - Executive Vice President of Finance and Administration

It did possibly help them.

Eli Lustgarten - Longbow Securities

Okay. And you indicated the pull forward of some revenue I guess it was the process group in the quarter to the Project O.N.E. for prices coming forward. Can you quantify what that might look like and how much do we give back in the next quarter and so we just had a forecast this?

Glenn A. Eisenberg - Executive Vice President of Finance and Administration

Right. Just from a timing standpoint, again we would say that roughly call it $10 million to $15 million of sales would have been accelerated into the first quarter versus the second. As you may recall, we went through systems implementation last year as well but we did in May. So, we saw similar events. We prepared for the advance of going live on the systems because this was now April 1 the advanced shipments if you will went into first quarter versus the first month of the second quarter.

Eli Lustgarten - Longbow Securities

So that too would have been a couple of pennies a share coming from that?

 

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