NORTH CANTON, Ohio, July 12, 2021 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global industrial leader in engineered bearings and power transmission products, announced today that its automatic lubrication systems portfolio has more than doubled in size from a revenue standpoint over the past five years through a combination of organic growth and strategic acquisitions. With its Groeneveld® and BEKA® brands, Timken is the world's second largest producer of automatic lubrication systems for industrial applications.i
The company anticipates 2021 will mark another record year for automatic lubrication systems revenue as it continues to expand its offerings and global presence. Longer-term, Timken expects the secular global trend toward automation will accelerate and that the company's continued innovative product development initiatives could enable it to generate a double-digit compound annual revenue growth rate (CAGR) through 2025.ii
"Our Groeneveld-BEKA automatic lubrication systems portfolio offers industry-leading product breadth," said Hans Landin, Timken group vice president. "Our proven innovation and reliability, coupled with our best-in-class customer service, are helping to drive growth as more and more of our customers across industries and regions realize the benefits of automatic lubrication products."
Timken entered the automatic lubrication market in 2013 when it acquired Interlube. In 2017, the company significantly expanded its portfolio and global reach through the acquisition of Groeneveld. When it acquired BEKA in 2019, Timken solidified its position as the world's second largest producer of industrial automatic lubrication systems.iii These acquisitions have helped advance Timken's strategy, which is focused on growing its leadership position in engineered bearings and diversifying its portfolio into adjacent products, markets and geographies.
Expanding production in North America, China
Later this year, Groeneveld-BEKA will begin assembling its new multi-line pump at its recently expanded state-of-the art North America operations headquarters in Dayton, Ohio. At the same time, the business is increasing its manufacturing presence in China in response to growing demand there. Ramping up production in both countries represents the development of a global manufacturing footprint designed to best serve the needs of its customer base.
"Founded in the Netherlands and Germany respectively, the Groeneveld and BEKA brands are both well-established in Europe," Landin said. "Expanding production in North America and China will help grow the portfolio and unlock further opportunities."
Providing cost-effective, safe and sustainable benefits
Automatic lubrication systems can be more sustainable than manual practices and can help customers save money through more efficient use of materials and longer-lasting equipment. A properly installed automatic system can reduce grease waste by up to 50 percent. Additionally, oil-management systems like Oilmaster, for example, can help increase the lifecycle of a bus engine by up to 30 percent. And systems installed on wind turbines help ensure their continuous operation as reliable sources of renewable energy.
Safety is another key consideration driving the automatic lubrication system trend. Customers, especially in challenging environments like ports, mines and quarries, are turning to Groeneveld and BEKA automatic systems to reduce risk and prevent accidents. Also, they help lessen labor needs, especially for companies experiencing worker shortages.
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com) designs a growing portfolio of engineered bearings and power transmission products. With more than a century of knowledge and innovation, we continuously improve the reliability and efficiency of global machinery and equipment to move the world forward. Timken posted $3.5 billion in sales in 2020 and employs more than 17,000 people globally, operating from 42 countries. Timken is recognized among America's Most Responsible Companies by Newsweek, the World's Most Ethical Companies® by Ethisphere and both America's Best Employers and America's Best Employers for New Graduates by Forbes.
Certain statements in this release (including statements regarding the company's forecasts, estimates, plans and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the company's future financial performance are forward-looking. The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the company's ability to respond to the changes in its end markets that could affect demand for the company's products or services; unanticipated changes in business relationships with customers or their purchases from the company; weakness in global or regional economic conditions and capital markets; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion within expected timeframes or at all; the impact on operations of general economic conditions; fluctuations in customer demand; negative impacts to the company's business, results of operations, financial position or liquidity as a result of COVID-19 or other epidemics and associated governmental measures such as restrictions on travel and manufacturing operations; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, acquisitions and capital investments. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2020, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
i Based on company estimates.
ii Based on company and industry estimates.
iii Based on company estimates.
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SOURCE The Timken Company