The Timken Company ( TKR Quick Quote TKR - Free Report) recently announced that it has commenced production at its new manufacturing facility in San Jose Iturbide, Mexico. The facility will produce tapered roller bearings using state-of-the-art technology, and utilize automation to deliver high standards for quality and consistency. It will serve customers across the Americas and globally. The San Jose Iturbide facility is Timken’s only manufacturing plant in Latin America. The company marked its foray in Latin America in 1944 and has been serving the region through offices and warehouses located in Argentina, Brazil and Mexico. The region currently generates around 5% of the company’s sales. Timken continues to pursue strategic acquisitions in a bid to broaden portfolio and capabilities across diverse markets, with focus on bearings, adjacent power transmission products and related services. In sync with this, on Dec 1, the company announced that it has purchased all assets of Aurora Bearing Company (Aurora), which manufactures rod ends and spherical plain bearings for various range of industrial markets, including aerospace and defense, off-highway equipment, racing and packaging. Aurora’s revenues are projected to be around $30 million for the current year. This buyout builds upon last year’s acquisitions of BEKA Lubrication and the Diamond Chain Company. Recently, Timken announced that it will make capital investments of more than $75 million through early 2022 in an effort to expand its renewable energy business. This will further aid the company’s remarkable growth in the wind and solar businesses in the days ahead. The company’s investments in buyouts and innovations over the last few years have positioned it as a leading supplier and technology partner in the wind and solar energy market. The renewable energy sector currently accounts for 7% of the company’s revenues and is expected to be roughly 12% of the total sales in 2020. The global demand for renewable energy is expected to witness a CAGR of around 8% over the next 10 years. Thus, the company is focused on targeted investments in this sector to capitalize on this trend and making it a bigger part of its portfolio in the future. Timken has been taking actions to enhance liquidity, reduce costs and generate strong cash flow. The company has accelerated and expanded its structural cost-reduction initiatives in order to align costs with near-term demand expectations and enhance profitability over the longer term. Price Performance
The stock has gained 73.9% over the past six months, outperforming the
industry’s growth of 44.3%. Zacks Rank & Other Stocks to Consider
Timken currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Industrial Products sector include Avery Dennison Corporation ( AVY Quick Quote AVY - Free Report) , Pentair plc ( PNR Quick Quote PNR - Free Report) and Silgan Holdings Inc. ( SLGN Quick Quote SLGN - Free Report) . While Avery Dennison flaunts a Zacks Rank #1 (Strong Buy), Pentair and Silgan carry a Zacks Rank of 2, at present. You can see . the complete list of today’s Zacks #1 Rank stocks here Avery Dennison has an estimated earnings growth rate of 5% for the ongoing year. Shares of the company have appreciated 34% in the past six months. Pentair has an expected earnings growth rate of 2% for 2020. The stock has surged 37% over the past six months. Silgan has a projected earnings growth rate of 38% for the current year. Over the past six months, the company’s shares have gained 16%. Breakout Biotech Stocks with Triple-Digit Profit Potential
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