What changed in this filing

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Item 1. Business

2024-02-26 compared with 2023-02-16 · 46 added, 35 removed, 194 unchanged (29% of the section changed)

1 unchanged sentence

Timken designs and manages a portfolio of engineered bearings and industrial motion products, and provides related services.

The Company’s growing portfolio features many strong brands, including Timken®, Philadelphia Gear®, GGB®, Drives®, Cone Drive®, Rollon®, Lovejoy®, Diamond®, BEKA®, Groeneveld® and Spinea®.

The Company’s growing portfolio features many strong brands, including Timken®, GGB®, Philadelphia Gear®, Cone Drive®, Rollon®, Nadella®, Diamond®, Drives®, Groeneveld®, BEKA®, Des-Case®, Lovejoy® and Lagersmit®.

The Company was founded in 1899 by Henry Timken, who received two patents on the design of a tapered roller bearing.

51 unchanged sentences

Linear Motion Products.

The Company designs and manufactures a global portfolio of Rollon® engineered linear motion products, including linear guides, telescopic rails, linear actuators, seventh-axis robotic transfer units and gantry systems.

The Company designs and manufactures a global portfolio of Rollon® and Nadella® engineered linear motion products, including linear guides, telescopic rails, linear actuators, seventh-axis robotic transfer units and gantry systems.

These engineered products are highly customized to control movements with different variability and complexity based on the application.

Rollon products serve a wide range of industries, including passenger rail, aerospace, packaging and logistics, medical and automation.

Rollon and Nadella products serve a wide range of industries, including passenger rail, aerospace, packaging and logistics, medical and automation.

Industrial Drives.

24 unchanged sentences

These products are custom engineered for OEMs and used in marine, mining, aggregate, wood recycling and metals industries.

The Company's Lagersmit® engineered sealing solutions serve demanding marine, dredging, water, tidal energy and other industrial applications.

The business serves leading propulsion manufacturers, ship owners, pump makers and other global industrial customers that require advanced sealing systems.

Timken offers other industrial sealing solutions that come in a variety of types and material options and are used in manufacturing, food processing, mining, power generation, chemical processing, primary metals, pulp and paper and oil and gas industry applications.

Other Products.

The Company also offers a full line of seals, augers and other industrial motion components.

Timken industrial sealing solutions come in a variety of types and material options that are used in manufacturing, food processing, mining, power generation, chemical processing, primary metals, pulp and paper, and oil and gas industry applications.

The Company also offers specialty filtration products, augers and other specialized industrial motion products.

Des-Case is a technical leader in branded filtration solutions that sit adjacent to Timken's automatic lubrication systems.

Des-Case features a comprehensive product offering including breathers, filter elements, condition monitoring, lubrication storage and filter systems used throughout the entire lubricant lifecycle.

These solutions are critical for enhancing reliability, reducing downtime and extending the useful life of customers' systems.

The Company also designs and manufactures Drives® helicoid and sectional augers for agricultural applications, like conveying, digging and combines.

The Company's specialized industrial motion components include Shuton and Ipiranga ball screws among other key products.

Power Systems.

13 unchanged sentences

Timken products are sold principally by its internal sales organizations.

A portion of each segment's sales are made through authorized distributors.

A portion of each segment's sales are made through authorized distributors or sales agents.

Customer collaboration is central to the Company's sales strategy.

Therefore, Timken goes where our customers need us, with sales engineers primarily working in close proximity to customers rather than at production sites.

Therefore, Timken goes where its customers need us, with sales engineers primarily working in close proximity to customers rather than at production sites.

The Company's sales force continuously updates the team's training and knowledge regarding engineered bearings and industrial motion products and related market sector trends, and they assist customers during product development and implementation phases and provide ongoing service and support.

2 unchanged sentences

Timken, SKF Group, Schaeffler Group, RBC Bearings and Gates Industrial Corp.

The e-business service focuses on information and business services for authorized distributors in the Process Industries segment.

The e-business service focuses on information and business services for authorized distributors in the Engineered Bearings segment.

Timken has entered into individually negotiated contracts with some of its customers.

1 unchanged sentence

Timken does not believe that there is any significant loss of earnings risk associated with any given contract.

The bearing industry and the industries into which Timken sells its industrial motion products are highly competitive.

Timken primarily competes based on total value, including price, quality, timeliness of delivery, product design and the ability to provide engineering support and service on a global basis.

The Company competes with many domestic and foreign manufacturers of anti-friction bearings, including SKF Group, Schaeffler Group, NTN Corporation, JTEKT Corporation and NSK Ltd., and with a diverse group of domestic and foreign manufacturers of industrial motion products.

The bearing and industrial motion industries are highly competitive.

Timken primarily competes based on its total value proposition, including product design and performance, application engineering, quality, price, timeliness of delivery, and the ability to provide technical sales and service support on a global basis.

The Company competes with many domestic and foreign manufacturers of anti-friction bearings, including SKF Group and Schaeffler Group, and with a diverse group of domestic and foreign manufacturers of industrial motion products.

Joint Ventures:

3 unchanged sentences

(Dollars in millions) 2023 2022

Mobile Industries $ 1,297.1 $ 1,354.9

Process Industries 1,193.7 1,095.0

Engineered Bearings $ 1,502.0 $ 1,722.1

Industrial Motion 775.2 768.7

Total Company $ 2,277.2 $ 2,490.8

18 unchanged sentences

Downer's Grove, Fulton and Montgomery, Illinois;

Indianapolis, Indiana;

Norton Shores, Rochester Hills and Traverse City, Michigan;

2 unchanged sentences

Thorofare, New Jersey;

Morganton, North Carolina;

and King of Prussia, Pennsylvania.

23 unchanged sentences

The costs of such investigation and remediation activities, in the aggregate, are not expected to be material to the operations or financial position of the Company.

New laws and regulations, stricter enforcement of existing laws and regulations, the discovery of previously unknown contamination or the imposition of new clean-up requirements may require Timken to incur costs or become the basis for new or increased liabilities that could have a materially adverse effect on the Company's business, financial condition or results of operations.

New laws and regulations, stricter enforcement of existing laws and regulations, the discovery of previously unknown contamination or the imposition of new clean-up requirements may require Timken to incur costs, change production methods or materials, or become the basis for new or increased liabilities that could have a materially adverse effect on the Company's business, financial condition or results of operations.

Other Regulations

14 unchanged sentences

Human Capital:

The Company believes that its associates and their collective knowledge and experience are its most valuable resource.

As a result, the Company is committed to providing a safe work environment, attracting, motivating and retaining the best talent in the industry and providing opportunities for its associates to learn and advance their career with the Company.

Associate Health and Safety

Associate health and safety remains a top priority for the Company and its commitment to safety starts at the top of the organization.

The Company believes that its employees and their collective knowledge and experience are among its most valuable resources.

The Company is committed to providing a safe work environment and growth opportunities for its employees to learn and advance their career with the Company to promote and safeguard these key resources.

Employee Health and Safety

Employee health and safety remains a top priority for the Company and its commitment to safety starts at the top of the organization.

Chief Executive Officer, Richard Kyle, was the first-ever chair of the Company's Environmental Health and Safety Steering Committee, which was created in 2009 and continues to drive accountability and responsibility for safety throughout the organization .

The Company's commitment to the health and safety of its associates is evidenced by its strong safety results in 2021 and 2022 shown in the charts below:

The Company's commitment to the health and safety of its employees is evidenced by its strong safety results in 2023 and 2022 shown in the charts below:

*Rates calculated as (number of injuries and illnesses x 200,000) / employee hours worked per 100 full-time workers.

2023 rates represent the Company's best estimate as of the date of this report

- - - represents the 2022 top quartile cutoff for U.S.

metal manufacturers (North American Industry Classification System ("NAICS") code 332) that employ at least 1,000 employees, based on information provided by the U.S.

Bureau of Labor Statistics at https://www.bls.gov/iif/.

The Company aims to maintain a recordable rate within the top quartile of U.S.

metal manufacturers (North American Industry Classification System code 332) based on information provided by the U.S.

metal manufacturers (NAICS code 332) based on information provided by the U.S.

Bureau of Labor Statistics.

While quartile industry data was not available at the time of this report for either 2021 or 2022, the Company's 2022 recordable rate of 1.06 and lost time accident rate of 0.27 showed strong improvement over the corresponding 2021 rates of 1.20 and 0.38, respectively.

Attracting, Retaining, and Motivating Highly Qualified Associates

For 2023, the Company's lost time accident rate of 0.37 and recordable rate of 1.10 remained strong.

In 2022, the Company's lost time accident rate of 0.29 outperformed the top quartile of U.S.

metal manufacturers while its recordable rate of 1.06 slightly lagged.

Attracting, Retaining, and Motivating Highly Qualified Employees

Successful execution of the Company's strategy continues to depend on attracting, retaining, and motivating highly qualified talent.

As such, the Company believes it is important to reward associates with competitive wages and comprehensive benefits to recognize professional excellence and career progression.

The Company also believes it is important to provide pay and benefits that are competitive and equitable based on the local markets in which it operates.

In addition, the Company also believes that having open, honest dialogue with its associates is key to evolving its culture and keeping the Company strong.

The Company provides professional growth and learning opportunities and individualized career development to support these objectives.

The Company thinks it is important to recognize and reward its employees with pay and comprehensive benefits that are competitive and equitable based on the local markets in which it operates.

The Company also believes that having open, honest dialogue with its employees is key to maintaining its strong culture and ethical work practices.

In line with that approach, the Company conducts comprehensive surveys on a periodic basis and individual stay interviews to measure employee engagement.

Additionally, exit interviews are conducted with employees who voluntarily terminated their employment, which helps improve management processes.

The Company also deploys regular pulse surveys to gain insights from associates’ recent experiences and to better understand how effectively it is engaging, energizing and enabling its workforce.

The Company also provides several professional development and training opportunities to advance our associates’ skills and expertise.

Some of these opportunities include online-learning platforms, job-specific training, our operations development program and our educational reimbursement programs.

The Company has recruited and trained many of its associates through its engineering co-op program, where engineering students have the opportunity to work up to five semesters alongside the Company’s experienced engineers while they complete their bachelor’s degrees.

Exit interviews are conducted with employees who voluntarily terminated their employment, which helps improve management processes.

The Company deploys pulse surveys to gain insights from employees’ recent experiences and to better understand how effectively it is engaging, energizing and enabling its workforce.

The Company provides several professional development and training opportunities to advance its employees’ skills and expertise.

Some of these opportunities include online-learning platforms, job-specific training, employee development programs, including its operations development program (a training program designed to increase the internal pool of employees who are ready to take on leadership positions), and its educational reimbursement programs.

The Company has recruited and trained many of its employees through its engineering co-op program, where engineering students have the opportunity to work up to five semesters alongside the Company’s experienced engineers while they complete their bachelor’s degrees.

Comprehensive leadership, skill and competency assessments are offered to Company employees to best identify and address individual and team development needs and activities.

To better inform its hiring and associate development efforts, the Company has partnered with third-party vendors to provide required training for its managers focused on diversity and inclusion.

To further our Company's diverse and inclusive culture and work environment, Timken associate resource groups (“ARGs”) around the world help us understand and address the challenges faced by our diverse workforce and the opportunities diversity offers in advancing our collective knowledge.

Our associates continue to drive new programming and chapter expansion across our five primary ARGs:

To better inform its hiring and employee development efforts, the Company has also partnered with third-party vendors to provide required training for its managers focused on leadership, diversity and inclusion.

To further the Company's diverse and inclusive culture, Timken employee resource groups (“ERGs”) around the world help us understand and address the challenges faced by its diverse workforce and the benefits inclusion offers in advancing its collective knowledge.

The Company's employees continue to drive new programming and chapter expansion across its five primary ERGs:

Women’s International Network (WIN), Multicultural Association of Professionals (MAP), Young Professionals Network (YPN), Veteran Engagement at Timken (VET), and Timken PRIDE Network (TPN).

Additionally, we partner with an online platform, GlobeSmart®, to help our associates further their global competency.

Additionally, the Company partners with an online platform, Aperian®, to help its employees further their global competency.

Available Information:

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business