Timken Co., Canton, Ohio, blamed a $122.5 million reduction in shareholder equity on poor pension fund performance. In a statement today the company said the pension funds low investment performance "reflected lower stock market returns, while declining interest rates increased the companys defined benefit liability.
Its shareholder equity fell to $781.7 million for the year ended Dec. 31. The impact did not affect net income. The company had $1.38 billion in pension assets and $1.64 billion in pension liabilities at the end of 2000; details for year-end 2001 werent available.