UPDATE 1-Timken profit slumps due to lower demand for mining equipment
Jan 30 (Reuters) - Timken Co, which makes specialty steel and ball bearings, reported a 30 percent fall in quarterly profit, hurt by weak demand from the mining industry.
Mining companies, facing investor backlash over unpopular takeovers and budget overruns and suffering from falling metal prices, have slashed spending on new equipment and have even begun to cannibalize components from old mining equipment.
Canton, Ohio-based Timken joins heavy-equipment maker Caterpillar Inc and toolmaker Kennametal Inc in citing weakness in the mining sector as a drag on profit.
Kennametal cut its organic sales growth estimate to 2-4 percent from 4-6 percent due to weak conditions in underground mining in the United States and China.
Timken's net income fell to $52.6 million, or 55 cents per share, in the fourth quarter ended Dec. 31 from $75.3 million, or 78 cents per share, a year earlier.
Excluding items, the company earned 78 cents a share. Analysts expected the company to earn 73 cents a share, according to Thomson Reuters I/B/E/S.
Revenue fell about 2 percent to $1.06 billion.
Timken said it expects 2014 earnings of between $3.50 a share and $3.80 per share, excluding items.
The company earned $3.09 per share in 2013, excluding items.