Exhibit 99.1
NEWS RELEASE
Timken Reports Third-Quarter Results
| | • | | Strong industrial markets benefit company performance |
| |
| | • | | Actions underway to address volume declines in |
| |
| | | | North American automotive market |
CANTON, Ohio – Oct. 25, 2006 – The Timken Company (NYSE: TKR) today reported sales of $1.27 billion in the third quarter, up slightly from the same period a year ago. Strong sales in industrial markets were largely offset by significant declines in automotive markets. The company achieved third-quarter net income of $46.5 million, or $0.49 per diluted share, up from $39.8 million, or $0.43 per diluted share, in last year’s third quarter.
Excluding special items, earnings per diluted share were $0.57 compared to $0.58 for the same period in 2005. Special items in the third quarter included manufacturing restructuring and rationalization charges that totaled $7.1 million of pretax expense, compared to $28.3 million in the same period a year ago.
“Our industrial and steel businesses performed well in the third quarter with industrial markets continuing to drive strong demand for our products,” said James W. Griffith, president and chief executive officer. “Dramatic volume reductions are posing significant challenges across the North American automotive market. We are taking actions to adapt to the decline in demand and will continue to pursue structural changes to bring our Automotive business to profitability.”
For the first nine months of 2006, sales were $4.0 billion, an increase of 3 percent from the same period in the prior year, driven by strong industrial markets. Earnings per diluted share for the first nine months of 2006 increased to $1.99 from $1.79 in the same period a year ago.
The Timken Company
Media Contact: Jeff Dafler
Manager — Global Media & Government Affairs
Mail Code: GNW-37
1835 Dueber Avenue, S.W.
Canton, OH 44706 U.S.A.
Telephone: (330) 471-3514
Facsimile: (330) 471-4118
jeff.dafler@timken.com
Investor Contact: Steve Tschiegg
Manager — Investor Relations
Mail Code: GNE-26
1835 Dueber Avenue, S.W.
Canton, OH 44706 U.S.A.
Telephone: (330) 471-7446
Facsimile: (330) 471-2797
steve.tschiegg@timken.com
For Additional Information:
www.timken.com/media
www.timken.com/investors
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Special items in the first nine months of 2006 totaled $32.9 million of pretax expense, compared to $33.1 million in the same period a year ago, and included manufacturing, restructuring and rationalization charges and the impact of asset dispositions. Excluding special items, earnings per diluted share in the first nine months of 2006 were $2.19, compared to $1.99 during the same period in 2005, due to continued strong industrial market demand.
Total debt was $752.8 million as of Sept. 30, 2006, or 30.7 percent of capital. Net debt at Sept. 30, 2006, was $698.7 million, or 29.2 percent of capital, compared to $655.6 million, or 30.5 percent of capital, as of Dec. 31, 2005. Year-to-date, the increase in net debt was primarily due to capital expenditures to support the company’s growth initiatives, pension contributions and seasonal working capital requirements. The company anticipates ending the year with lower net debt and leverage, compared to Dec. 31, 2005.
Industrial Group Results
The Industrial Group had third-quarter sales of $501.8 million, up 7 percent from $468.2 million for the same period last year. The company continued to benefit from strong demand across its broad industrial segments, led by increases in the aerospace, industrial distribution and heavy industry segments.
The Industrial Group’s earnings before interest and taxes (EBIT) in the third quarter were $48.2 million, compared to $47.4 million for the same period last year. EBIT performance reflected continued strong volume and pricing, which were offset primarily by higher manufacturing costs, including those for capacity additions and increased investments for growth initiatives. Timken continues to make investments in Asia and key global industrial markets, including construction of the company’s fifth manufacturing facility in China, opening of a global aerospace facility in Arizona and introduction of a new line of large-bore seals.
The Timken Company
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For the first nine months of 2006, Industrial Group sales were $1.5 billion, up 7 percent over the same period a year ago. EBIT for the first nine months of 2006 was $157.6 million, compared to EBIT of $158.1 million over the prior-year period.
Automotive Group Results
The Automotive Group’s third-quarter sales of $363.6 million were 11 percent below the same period a year ago. The decline in sales was the result of significant reductions in vehicle production by automakers headquartered in North America, which was partially offset by improved pricing.
The Automotive Group recorded a third-quarter loss of $26.3 million, compared to a loss of $6.0 million for the same period a year ago. EBIT during the quarter was negatively impacted by lower volume, leading to underutilization of manufacturing capacity. In response to the recent drop in demand, Timken announced in September 2006 the reduction of 700 positions from its Automotive Group. This action is expected to result in savings of approximately $35 million, which will be fully realized by the middle of 2007, at a cost of approximately $25 million. This program is in addition to the automotive restructuring plan announced in July 2005, which has targeted savings of approximately $40 million by the end of 2007. The company anticipates taking additional actions to structurally improve the performance of this business going forward.
For the first nine months of 2006, Automotive Group sales of $1.2 billion were 3 percent below the same period last year. The group recorded a loss of $31.4 million for the first nine months of 2006, compared to a loss of $12.4 million in the first nine months of 2005.
Steel Group Results
Steel Group third-quarter sales were $442.6 million, a 3 percent increase from $427.9 million in the same period a year ago. The sales were driven by increased pricing, surcharges and higher demand in the service center, aerospace and energy segments, and were negatively impacted by lower automotive demand.
The Timken Company
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Third-quarter EBIT was $63.0 million, compared to $49.7 million for the same period last year. The strong results were due to price increases, surcharges, better sales mix and improved manufacturing productivity.
During the quarter, the Steel Group announced an investment in a new induction heat-treat line that will increase Timken’s capacity and ability to provide differentiated products to more customers in important global energy markets. In addition, the group recently announced its intention to exit its European seamless steel tube manufacturing operation as part of its strategy to strengthen its business portfolio.
For the first nine months of 2006, Steel Group sales were $1.4 billion, a 3 percent increase over the first nine months of last year. EBIT for the first nine months of 2006 was $209.6 million compared to EBIT of $170.2 million in the first nine months of 2005.
Outlook
Based on third-quarter performance, Timken is estimating 2006 earnings per diluted share, excluding special items, of $2.65 to $2.75. In 2005, the company earned $2.53 per diluted share, excluding special items.
Conference Call Information
The company will host a conference call for investors and analysts today to discuss financial results.
| | | | | |
| | | Conference Call: | | Wednesday, Oct. 25, 2006 |
| | | | | 11:00 a.m. Eastern Daylight Time |
| | | | | |
| | | All Callers: | | Live Dial-In: 800-344-0593 or 706-634-0975 |
| | | | | (Call in 10 minutes prior to be included.) |
| | | | | Replay Dial-In through Nov. 1, 2006: |
| | | | | 800-642-1687 or 706-645-9291 |
| | | | | Conference ID: 5677550 (Valid for live call and |
| | | | | replay) |
| | | | | |
| | | Live Webcast: | | www.timken.com/investors |
The Timken Company
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About The Timken Company
The Timken Company (NYSE: TKR,http://www.timken.com) keeps the world turning, with innovative ways to make customers’ products run smoother, faster and more efficiently. Timken’s highly engineered bearings, alloy steels and related products and services turn up everywhere. With operations in 27 countries, sales of $5.2 billion in 2005 and 27,000 employees, Timken is Where You Turn™ for better performance.
Certain statements in this news release (including statements regarding the company’s forecasts, estimates 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, statements related to expected savings and costs of the company’s programs and initiatives and expectations regarding the company’s financial performance, including the information under the heading “Outlook,” 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, especially the North American automotive industry; fluctuations in raw-material and energy costs and the operation of the company’s surcharge mechanisms; changes in the financial health of the company’s customers; and the impact on operations of general economic conditions, higher raw-material and energy costs, fluctuations in customer demand and the company’s ability to achieve the benefits of its future and ongoing programs and initiatives, including, without limitation, the implementation of its Automotive Group restructuring program and initiatives and the rationalization of the company’s Canton bearing operations. These and additional factors are described in greater detail in the company’s Annual Report onForm 10-K for the year ended Dec. 31, 2005, page 65, and in the company’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2006. The company undertakes no obligation to update or revise any forward-looking statement.
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The Timken Company
CONSOLIDATED STATEMENT OF INCOME
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| | | AS REPORTED | | ADJUSTED (1) |
| (Thousands of U.S. dollars, except share data) (Unaudited) | | Q3 06 | | Q3 05 | | Nine Months 06 | | Nine Months 05 | | Q3 06 | | Q3 05 | | Nine Months 06 | | Nine Months 05 |
| | | |
| Net sales | | $ | 1,272,922 | | | $ | 1,258,133 | | | $ | 4,008,027 | | | $ | 3,887,351 | | | $ | 1,272,922 | | | $ | 1,258,133 | | | $ | 4,008,027 | | | $ | 3,887,351 | |
| Cost of products sold | | | 1,021,019 | | | | 1,002,705 | | | | 3,147,732 | | | | 3,076,089 | | | | 1,021,019 | | | | 1,002,705 | | | | 3,147,732 | | | | 3,076,089 | |
| Manufacturing rationalization/reorganization expenses — cost of products sold | | | 3,419 | | | | 3,017 | | | | 11,400 | | | | 10,189 | | | | — | | | | — | | | | — | | | | — | |
| | | |
Gross Profit | | $ | 248,484 | | | $ | 252,411 | | | $ | 848,895 | | | $ | 801,073 | | | $ | 251,903 | | | $ | 255,428 | | | $ | 860,295 | | | $ | 811,262 | |
| Selling, administrative & general expenses (SG&A) | | | 162,955 | | | | 162,231 | | | | 511,778 | | | | 487,325 | | | | 162,955 | | | | 162,231 | | | | 511,778 | | | | 487,325 | |
| Manufacturing rationalization/reorganization expenses — SG&A | | | 1,044 | | | | 790 | | | | 2,737 | | | | 1,477 | | | | — | | | | — | | | | — | | | | — | |
| Impairment and restructuring | | | 2,682 | | | | 24,451 | | | | 21,162 | | | | 24,407 | | | | — | | | | — | | | | — | | | | — | |
| | | |
Operating Income | | $ | 81,803 | | | $ | 64,939 | | | $ | 313,218 | | | $ | 287,864 | | | $ | 88,948 | | | $ | 93,197 | | | $ | 348,517 | | | $ | 323,937 | |
| Other (expense) income | | | (2,018 | ) | | | (4,265 | ) | | | (11,367 | ) | | | (12,433 | ) | | | (2,018 | ) | | | (4,265 | ) | | | (11,367 | ) | | | (12,433 | ) |
| Special items — other (expense) income | | | 76 | | | | (8 | ) | | | 2,430 | | | | 2,987 | | | | — | | | | — | | | | — | | | | — | |
| | | |
Earnings Before Interest and Taxes (EBIT) (2) | | $ | 79,861 | | | $ | 60,666 | | | $ | 304,281 | | | $ | 278,418 | | | $ | 86,930 | | | $ | 88,932 | | | $ | 337,150 | | | $ | 311,504 | |
| Interest expense, net | | | (10,850 | ) | | | (11,968 | ) | | | (34,149 | ) | | | (37,157 | ) | | | (10,850 | ) | | | (11,968 | ) | | | (34,149 | ) | | | (37,157 | ) |
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Income Before Income Taxes | | $ | 69,011 | | | $ | 48,698 | | | $ | 270,132 | | | $ | 241,261 | | | $ | 76,080 | | | $ | 76,964 | | | $ | 303,001 | | | $ | 274,347 | |
| Provision for income taxes | | | 22,465 | | | | 8,867 | | | | 82,955 | | | | 75,861 | | | | 21,849 | | | | 23,501 | | | | 96,960 | | | | 90,809 | |
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Net Income | | $ | 46,546 | | | $ | 39,831 | | | $ | 187,177 | | | $ | 165,400 | | | $ | 54,231 | | | $ | 53,463 | | | $ | 206,041 | | | $ | 183,538 | |
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Earnings Per Share | | $ | 0.50 | | | $ | 0.43 | | | $ | 2.01 | | | $ | 1.81 | | | $ | 0.58 | | | $ | 0.58 | | | $ | 2.21 | | | $ | 2.01 | |
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Earnings Per Share-assuming dilution | | $ | 0.49 | | | $ | 0.43 | | | $ | 1.99 | | | $ | 1.79 | | | $ | 0.57 | | | $ | 0.58 | | | $ | 2.19 | | | $ | 1.99 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average Shares Outstanding | | | 93,500,491 | | | | 91,688,231 | | | | 93,239,292 | | | | 91,238,444 | | | | 93,500,491 | | | | 91,688,231 | | | | 93,239,292 | | | | 91,238,444 | |
| Average Shares Outstanding-assuming dilution | | | 94,376,937 | | | | 92,821,344 | | | | 94,238,413 | | | | 92,181,013 | | | | 94,376,937 | | | | 92,821,344 | | | | 94,238,413 | | | | 92,181,013 | |
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| (1) | | “Adjusted” statements exclude the impact of impairment and restructuring, manufacturing rationalization/reorganization and special charges and credits for all periods shown. |
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| | | Management believes that the adjusted statements are more representative of the company’s performance and therefore useful to investors. |
BUSINESS SEGMENTS
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| (Thousands of U.S. dollars) (Unaudited) | | Q3 06 | | Q3 05 | | Nine Months 06 | | Nine Months 05 |
| |
Industrial Group | | | | | | | | | | | | | | | | |
| Net sales to external customers | | $ | 501,347 | | | $ | 467,774 | | | $ | 1,533,397 | | | $ | 1,433,746 | |
| Intersegment sales | | | 469 | | | | 435 | | | | 1,366 | | | | 1,461 | |
| | | |
| Total net sales | | $ | 501,816 | | | $ | 468,209 | | | $ | 1,534,763 | | | $ | 1,435,207 | |
| Adjusted earnings before interest and taxes (EBIT) * (2) | | $ | 48,180 | | | $ | 47,444 | | | $ | 157,557 | | | $ | 158,072 | |
| Adjusted EBIT Margin (2) | | | 9.6 | % | | | 10.1 | % | | | 10.3 | % | | | 11.0 | % |
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Automotive Group | | | | | | | | | | | | | | | | |
| Net sales to external customers | | $ | 363,586 | | | $ | 407,959 | | | $ | 1,211,284 | | | $ | 1,254,173 | |
| Adjusted (loss) earnings before interest and taxes (EBIT) * (2) | | ($ | 26,276 | ) | | ($ | 6,040 | ) | | ($ | 31,377 | ) | | ($ | 12,357 | ) |
| Adjusted EBIT (Loss) Margin (2) | | | -7.2 | % | | | -1.5 | % | | | -2.6 | % | | | -1.0 | % |
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Steel Group | | | | | | | | | | | | | | | | |
| Net sales to external customers | | $ | 407,989 | | | $ | 382,400 | | | $ | 1,263,346 | | | $ | 1,199,432 | |
| Intersegment sales | | | 34,584 | | | | 45,512 | | | | 116,556 | | | | 141,248 | |
| | | |
| Total net sales | | $ | 442,573 | | | $ | 427,912 | | | $ | 1,379,902 | | | $ | 1,340,680 | |
| Adjusted earnings before interest and taxes (EBIT) * (2) | | $ | 63,010 | | | $ | 49,698 | | | $ | 209,580 | | | $ | 170,171 | |
| Adjusted EBIT Margin (2) | | | 14.2 | % | | | 11.6 | % | | | 15.2 | % | | | 12.7 | % |
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| * | | Industrial Group, Automotive Group and Steel Group EBIT do not equal Consolidated EBIT due to intersegment adjustments which are eliminated upon consolidation. |
| |
| (2) | | EBIT is defined as operating income plus other income (expense). EBIT Margin is EBIT as a percentage of net sales. EBIT and EBIT margin on a segment basis exclude certain special items set forth above. EBIT and EBIT Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting EBIT and EBIT Margin best reflect the performance of our business segments and EBIT disclosures are responsive to investors. |
Reconciliation of Total Debt to Net Debt and the Ratio of Net Debt to Capital:
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| (Thousands of U.S. Dollars) (Unaudited) | | Sept 30, 2006 | | | Jun 30, 2006 | | | Dec 31, 2005 | |
| Short-term debt | | $ | 204,166 | | | $ | 150,983 | | | $ | 159,279 | |
| Long-term debt | | | 548,611 | | | | 553,016 | | | | 561,747 | |
| | | | | | | | | | |
| Total Debt | | | 752,777 | | | | 703,999 | | | | 721,026 | |
| Less: cash and cash equivalents | | | (54,069 | ) | | | (38,752 | ) | | | (65,417 | ) |
| | | | | | | | | | |
| Net Debt | | $ | 698,708 | | | $ | 665,247 | | | $ | 655,609 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Shareholders’ equity | | | 1,697,303 | | | | 1,661,302 | | | | 1,497,067 | |
| | | | | | | | | | | | | |
| Ratio of Total Debt to Capital | | | 30.7 | % | | | 29.8 | % | | | 32.5 | % |
| Ratio of Net Debt to Capital (Leverage) | | | 29.2 | % | | | 28.6 | % | | | 30.5 | % |
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This reconciliation is provided as additional relevant information about Timken’s financial position. Capital is defined as debt plus shareholder’s equity. Management believes Net Debt is more representative of Timken’s indicative financial position, due to the amount of cash and cash equivalents.
Reconciliation of GAAP net income and EPS — Basic and Diluted as previously disclosed.
This reconciliation is provided as additional relevant information about the company’s performance. Management believes adjusted net income and adjusted earnings per share are more representative of the company’s performance and therefore useful to investors. Management also believes that it is appropriate to compare GAAP net income to adjusted net income in light of special items related to impairment and restructuring and manufacturing rationalization/ reorganization costs, Continued Dumping and Subsidy Offset Act (CDSOA) receipts, and gain on the sale of non-strategic assets.
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| | | Third Quarter | | Nine Months |
| | | 06 | | 05 | | 06 | | 05 |
| (Thousands of U.S. dollars, except share data) (Unaudited) | | $ | | EPS | | $ | | EPS | | $ | | EPS | | $ | | EPS |
| | | | | assuming dilution | | | | assuming dilution | | | | assuming dilution | | | | assuming dilution |
| |
| Net income | | $ | 46,546 | | | $ | 0.49 | | | $ | 39,831 | | | $ | 0.43 | | | $ | 187,177 | | | $ | 1.99 | | | $ | 165,400 | | | $ | 1.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pre-tax special items: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Manufacturing rationalization/reorganization expenses — cost of products sold | | | 3,419 | | | | 0.04 | | | | 3,017 | | | | 0.03 | | | | 11,400 | | | | 0.12 | | | | 10,189 | | | | 0.11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Manufacturing rationalization/reorganization expenses — SG&A | | | 1,044 | | | | 0.01 | | | | 790 | | | | 0.01 | | | | 2,737 | | | | 0.03 | | | | 1,477 | | | | 0.02 | |
| Impairment and restructuring | | | 2,682 | | | | 0.03 | | | | 24,451 | | | | 0.26 | | | | 21,162 | | | | 0.22 | | | | 24,407 | | | | 0.26 | |
| Special items — other expense (income) | | | (76 | ) | | | — | | | | 8 | | | | — | | | | (2,430 | ) | | | (0.03 | ) | | | (2,987 | ) | | | (0.03 | ) |
| Provision for income taxes | | | 616 | | | | — | | | | (14,634 | ) | | | (0.15 | ) | | | (14,005 | ) | | | (0.14 | ) | | | (14,948 | ) | | | (0.16 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| |
| Adjusted net income | | $ | 54,231 | | | $ | 0.57 | | | $ | 53,463 | | | $ | 0.58 | | | $ | 206,041 | | | $ | 2.19 | | | $ | 183,538 | | | $ | 1.99 | |
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Reconciliation of Outlook Information.
Expected earnings per diluted share for the full year exclude special items. Examples of such special items include impairment and restructuring, manufacturing rationalization/reorganization expenses, gain or loss on the sale of non-strategic assets, and payments under the CDSOA. It is not possible at this time to identify the potential amount or significance of these special items. We cannot predict whether we will receive any additional payments under the CDSOA in 2006 and if so, in what amount. If we do receive any additional CDSOA payments, they will most likely be received in the fourth quarter.
CONSOLIDATED BALANCE SHEET
| | | | | | | | | |
| | | Sept 30 | | Dec 31 |
| (Thousands of U.S. dollars) (Unaudited) | | 2006 | | 2005 |
| |
ASSETS | | | | | | | | |
| Cash & cash equivalents | | $ | 54,069 | | | $ | 65,417 | |
| Accounts receivable, net | | | 734,631 | | | | 711,783 | |
| Inventories, net | | | 1,077,792 | | | | 998,368 | |
| Deferred income taxes | | | 92,369 | | | | 104,978 | |
| Other current assets | | | 104,646 | | | | 102,763 | |
| |
Total Current Assets | | $ | 2,063,507 | | | $ | 1,983,309 | |
| Property, plant & equipment | | | 1,606,782 | | | | 1,547,044 | |
| Goodwill | | | 216,961 | | | | 204,129 | |
| Other assets | | | 256,804 | | | | 259,252 | |
| |
Total Assets | | $ | 4,144,054 | | | $ | 3,993,734 | |
| |
| | | | | | | | | |
LIABILITIES | | | | | | | | |
| Accounts payable & other liabilities | | $ | 506,866 | | | $ | 501,423 | |
| Short-term debt | | | 204,166 | | | | 159,279 | |
| Income Taxes | | | 60,633 | | | | 35,360 | |
| Accrued expenses | | | 313,075 | | | | 375,264 | |
| |
Total Current Liabilities | | $ | 1,084,740 | | | $ | 1,071,326 | |
| Long-term debt | | | 548,611 | | | | 561,747 | |
| Accrued pension cost | | | 209,052 | | | | 246,692 | |
| Accrued postretirement benefits cost | | | 519,792 | | | | 513,771 | |
| Other non-current liabilities | | | 84,556 | | | | 103,131 | |
| |
Total Liabilities | | $ | 2,446,751 | | | $ | 2,496,667 | |
| | | | | | | | | |
SHAREHOLDERS’ EQUITY | | | 1,697,303 | | | | 1,497,067 | |
| |
Total Liabilities and Shareholders’ Equity | | $ | 4,144,054 | | | $ | 3,993,734 | |
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
| | | | | | | | | | | | | | | | | |
| | | For the three months ended | | For the nine months ended |
| | | Sept 30 | | Sept 30 | | Sept 30 | | Sept 30 |
| (Thousands of U.S. dollars) (Unaudited) | | 2006 | | 2005 | | 2006 | | 2005 |
| |
Cash Provided (Used) | | | | | | | | | | | | | | | | |
OPERATING ACTIVITIES | | | | | | | | | | | | | | | | |
| Net Income | | $ | 46,546 | | | $ | 39,831 | | | $ | 187,177 | | | $ | 165,400 | |
| Adjustments to reconcile net income to net cash provided (used) by operating activities: | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 49,640 | | | | 53,066 | | | | 151,226 | | | | 160,765 | |
| Other | | | 6,302 | | | | 207 | | | | (1,548 | ) | | | (4,203 | ) |
| Changes in operating assets and liabilities: | | | | | | | | | | | | | | | | |
| Accounts receivable | | | 54,808 | | | | 13,460 | | | | (14,082 | ) | | | (110,262 | ) |
| Inventories | | | (29,495 | ) | | | (37,512 | ) | | | (57,837 | ) | | | (162,106 | ) |
| Other assets | | | (9,945 | ) | | | (52 | ) | | | (8,732 | ) | | | (28,671 | ) |
| Accounts payable and accrued expenses | | | (45,434 | ) | | | 2,374 | | | | (73,963 | ) | | | 79,190 | |
| Foreign currency translation loss (gain) | | | 1,116 | | | | (1,854 | ) | | | (9,891 | ) | | | 5,581 | |
| | | |
Net Cash Provided by Operating Activities | | | 73,538 | | | | 69,520 | | | | 172,350 | | | | 105,694 | |
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | | | | | | | | | | | | | | | | |
| Capital expenditures | | | (74,490 | ) | | | (45,379 | ) | | | (179,419 | ) | | | (128,605 | ) |
| Other | | | 4,896 | | | | 2,937 | | | | 6,158 | | | | 6,847 | |
| Divestments | | | — | | | | 848 | | | | (2,723 | ) | | | 11,729 | |
| Acquisitions | | | (4,299 | ) | | | (73 | ) | | | (4,299 | ) | | | (6,629 | ) |
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Net Cash Used by Investing Activities | | | (73,893 | ) | | | (41,667 | ) | | | (180,283 | ) | | | (116,658 | ) |
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FINANCING ACTIVITIES | | | | | | | | | | | | | | | | |
| Cash dividends paid to shareholders | | | (15,049 | ) | | | (13,824 | ) | | | (43,170 | ) | | | (41,238 | ) |
| Net proceeds from common share activity | | | 3,967 | | | | 18,160 | | | | 22,066 | | | | 30,740 | |
| Net borrowings (payments) on credit facilities | | | 26,848 | | | | (37,533 | ) | | | 15,122 | | | | 38,399 | |
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Net Cash Provided (Used) by Financing Activities | | | 15,766 | | | | (33,197 | ) | | | (5,982 | ) | | | 27,901 | |
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| Effect of exchange rate changes on cash | | | (94 | ) | | | 1,469 | | | | 2,567 | | | | (4,799 | ) |
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Increase (Decrease) in Cash and Cash Equivalents | | | 15,317 | | | | (3,875 | ) | | | (11,348 | ) | | | 12,138 | |
Cash and Cash Equivalents at Beginning of Period | | $ | 38,752 | | | $ | 66,980 | | | $ | 65,417 | | | $ | 50,967 | |
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| | | | | | | | | | | | | | | | | |
Cash and Cash Equivalents at End of Period | | $ | 54,069 | | | $ | 63,105 | | | $ | 54,069 | | | $ | 63,105 | |
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