Timken shares drop following CEO departure

Published 01/04/2025, 19:50
© Reuters.

Investing.com -- Shares of The Timken Company (NYSE: NYSE:TKR) fell 4% following the announcement of CEO Tarak B. Mehta’s immediate departure due to personal reasons. The Board of Directors has appointed Richard G. Kyle as the interim president and CEO, a familiar face who previously led the company from 2014 to 2024.

The unexpected leadership change comes as the company continues to pursue its industrial diversification strategy. Timken Chairman, John M. Timken, Jr., expressed confidence in the company’s position and its ability to drive profitable growth moving forward. The Board has begun a comprehensive search for a new CEO, enlisting the services of Crist Kolder Associates to find a suitable successor.

Richard G. Kyle, who is taking over as interim CEO, is credited with transforming Timken into a diversified industrial leader and achieving record financial performance during his previous tenure. His return is expected to provide stability and continuity as the company navigates this transition.

Keybanc analyst Steve Barger commented on the CEO transition, stating, "TKR announced an abrupt CEO transition. Tarak Mehta, who joined as CEO from ABB (ST:ABB) in September, is leaving the Company based on a mutual agreement due to personal reasons. TKR has launched a comprehensive CEO search process, retaining search firm Crist Kolder Associates. The Company notes that it is underway identifying the most qualified internal or external candidate to serve as the Company’s next CEO. While we don’t know the specifics around the decision, we expect a seamless transition and note former and now current CEO Rich Kyle is a known quantity with investors. As a reminder, Rich Kyle was TKR’s CEO from 2014-2024 and joined TKR in 2006."

Investors reacted to the news with caution, reflected in the stock’s decline. The future direction of The Timken Company’s leadership remains a focal point of interest, as the board seeks to fill the CEO position with a leader capable of continuing the company’s growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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