Profits rose slightly compared with last year but misses Wall Street expectations.

JACKSON TWP. Timken Co. saw second-quarter revenue reach $1 billion and expects to see revenue growth through the end of the year, although the company’s outlook has been lowered.

Richard G. Kyle, president and chief executive officer, said Timken had a very good quarter, but the company is lowering expectations “for both revenue and earnings to reflect a more cautious view.”

While Timken expects sales will rise by 16% to 17% in the process industries segment, mobile industries likely will be flat. Meanwhile, the company has seen issues because of tariffs and anticipates sales will be lower during the second half of the year as has happened in past years.

Additionally, the company might have been too optimistic based on results earlier this year. “We probably got a little ahead of ourselves on the first quarter guide,” Kyle told stock market analysts during a conference call Wednesday morning.

Timken reported profits of $92.5 million, or $1.20 per share, for the quarter that ended June 30. That’s a 1.6% gain compared to a $91 million profit, $1.16 per share, last year. Sales increased 10.3% from the $906.3 million reported in the second quarter of 2018.

Through the first half, net income was $184.4 million, $2.39 per share, which is a 7.7% gain from the $171.2 million, $2.17 per share, reported in 2018. First-half sales are $1.98 billion, a 10.6% gain from $1.79 billion last year.

Kyle said recent acquisitions have been performing well and contributing to results, although he did note that bringing Diamond Chain into the Timken fold had issues. Timken completed its purchase of Diamond Chain in April. The company now has combined management and sales teams as part of efforts to curb costs.

While Diamond Chain results were not as strong as expected, the operation showed improvement in June and is expected to show better results as the year progresses, Kyle said. Three other recent acquisitions — ABC Bearings, Cone Drive and Rollon Group — have performed well this year.

Acquisitions and a revamped approach in the automotive markets have given Timken a differentiated products and broader customer base. Kyle told stock analysts that this likely will be the first year the company will see process industries record more sales than mobile.

During the second quarter, process industries saw a 21.4% revenue jump with sales of $506 million compared with $417 million last. Wind energy, marine and heavy industries showed the strongest gains, the company said.

Mobile industries reported $494 million in second quarter sales, a slight gain from $489 million last year. The automotive and aerospace segments have been strong, while rail has been flat and off-highway and heavy truck are down.

Kyle said the demand for Timken products and services supports the company’s outlook for continued growth during the second half of the year. The company does expect to see solid revenue growth, record earnings per share and strong cash flow.

“Softness in some markets like off-highway is being offset by our outgrowth efforts and strength in other markets like wind, solar and aerospace,” Kyle said in the earnings release.

The results didn’t sit well with investors. Timken’s stock opened down and had lost nearly $3.50 per share in early trading before rebounding. The day ended with Timken shares priced at $45.71, down $2.76.