The Timken Company (NYSE:TKR) Q1 2019 Earnings Conference Call Transcript
May 01, 2019 • 11:00 am ET
Good morning, my name is Allison, I'll be your conference operator today. As a reminder, this call is being recorded. At this time, I'd like to welcome everyone to Timken's First Quarter Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)
Thank you. Mr. Hershiser, you may begin your conference.
Thanks, Allison, and welcome everyone to our first quarter 2019 earnings conference call. This is Jason Hershiser, Manager of Investor Relations for The Timken Company. We appreciate you joining us today. If after our call, you should have further questions, please feel free to contact me directly at 234-262-7101.
Before we begin our remarks this morning, I want to point out that we've posted on the Company's website presentation materials that we will reference as part of today's review of the quarterly results. You can also access this material through the download feature on the earnings call webcast link.
With me today are the Timken Company's President and CEO, Rich Kyle and Philip Fracassa, our Chief Financial Officer. We will have opening comments this morning from both Rich and Phil before we open up the call for your questions. During the Q&A, I would ask that you please limit your questions to one question and one follow-up at a time to allow everyone an opportunity to participate.
During today's call, you may hear forward-looking statements related to our future financial results, plans and business operations. Our actual results may differ materially from those projected or implied due to a variety of factors, which we described in greater detail in today's press release and in our reports filed with the SEC, which are available on the timken.com website.
We have included reconciliations between non-GAAP financial information and its GAAP equivalent in the press release and presentation materials. Today's call is copyrighted by The Timken Company without expressed written consent we prohibit any use, recording or transmission of any portion of the call.
With that, I would like to thank you for your interest in The Timken Company, and I will now turn the call over to Rich.
Richard G. Kyle
Thanks, Jason. Good morning, everyone, and thanks for joining us today. We delivered an excellent quarter and started 2019 with revenue up 11%, margins up over 300 basis points and record earnings per share of $1.35. We organically grew more than 6% over prior year, which was in line with our expectations. We were up 8% inorganically, driven by our 2018 acquisitions of Cone Drive, Rollon and ABC bearings. All three acquisitions are off to excellent starts and we remain excited about the future of these businesses within Timken. Our bottom line performance was even stronger. We expanded operating margins to 16.6%, 310 basis points over the first quarter of 2018.
Mobile margins of 13.2%, were up 260 basis points from prior year and put us ahead of our plan to exceed 12% margins for the