NORTH CANTON, Ohio,
Feb. 15, 2016 /PRNewswire/
-- The Timken Company (NYSE: TKR; www.timken.com) has a
received a multi-year contract from the U.S. Department of Defense
to provide engineering and supply Philadelphia Gear®
main reduction gears (MRGs) for the Navy's next generation of
Arleigh Burke DDG 51 class ships. The fixed-price contract
includes options which, if exercised, could bring the cumulative
value of the contract to more than $1
billion over its life.
"We've worked alongside the U.S. Navy for many decades and are
proud to continue supplying our engineering expertise and
Philadelphia Gear products and services for this important class of
multi-mission ships," said Carl D.
Rapp, vice president of the Power Systems group for Timken.
"Philadelphia Gear won the contract to supply MRGs for the re-start
of the DDG program in 2010 and, through the years, we have strived
to deliver a quality product, on-time, and provide fleet support
globally wherever the Navy serves our nation." More than 60 DDGs
are in service today.
"As a result of our work with the Navy, our teams are prepared
to meet the challenge of building reliable propulsion drives to
support the demanding mission requirements of the DDG class for
years to come," Rapp said. While no specific quantities were
provided in the contract issued by the Department of Defense, Rapp
anticipates that Timken will provide Philadelphia Gear MRGs for new
DDG ships over roughly the next decade.
The Timken Company acquired the assets of Philadelphia
Gear Corp., a recognized leader in
high-performance gear drives, components and related services, in
2011. The company expects that sales under this contract would not
begin until 2017, with total sales ultimately dependent upon the
number and timing of options exercised by U.S. Navy officials.
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com) engineers,
manufactures and markets bearings, transmissions, gearboxes, belts,
chain and related products, and offers a spectrum of powertrain
rebuild and repair services. The leading authority on tapered
roller bearings, Timken today applies its deep knowledge of
metallurgy, tribology and mechanical power transmission across a
variety of bearings and related systems to improve reliability and
efficiency of machinery and equipment all around the world. The
company's growing product and services portfolio features many
strong industrial brands including Timken®,
Fafnir®, Philadelphia Gear®, Carlisle®, Drives® and
InterlubeTM. Known for its quality products and
collaborative technical sales model, Timken posted $2.9 billion in sales in 2015. With more
than 14,000 employees operating from 29 countries, Timken makes the
world more productive and keeps industry in motion.
Certain statements in this release (including statements
regarding the company's 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, the statements regarding the company's expectations for
the cumulative sales under the contract, the length of the contract
and the level and timing of sales 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 expected level and timing of
the procurement of products and funding thereof by the U.S.
Department of Defense; risks related to reductions in government
expenditures; risks related to production or shipment delays; and
changes in technology that could reduce the expected demand for
these products. 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, 2014, 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.
Media
Contact:
|
Investor
Relations:
|
Nicole
DiSalvo
|
Shelly
Chadwick
|
Global Media
Relations
|
Vice President –
Treasury & Investor Relations
|
Telephone:
234.262.4877
|
Telephone:
234.262.3223
|
Mediarelations@timken.com
|
Shelly.chadwick@timken.com
|
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SOURCE The Timken Company