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THE TIMKEN COMPANY ANNOUNCES PROGRAM TO STREAMLINE OPERATIONS AND IMPROVE RESULTS

 THE TIMKEN COMPANY ANNOUNCES PROGRAM
 TO STREAMLINE OPERATIONS AND IMPROVE RESULTS
 CANTON, Ohio, Dec. 19 /PRNewswire/ -- The Timken Company (NYSE: TKR) announced today a $41 million program to strengthen its strategic long-term position, significantly reduce costs and dispose of certain non-strategic assets.
 The program will be implemented over the next five years and will include reducing the workfoce, writing off certain equipment and inventories of supplies and products as well as other measures.
 These actions will result in a one-time after-tax charge of about $26.6 million, or approximately $0.88 per share, in the fourth quarter. The company recorded a small profit for the first nine months of 1991 but expects to post a loss for the year. It also expects a loss from operations for the fourth quarter, as the company continues to feel the effects of the extended recession.
 "These actions will improve productivity, service to our customers and our longer-term financial performance," said Joseph F. Toot Jr., president. "We have been aggressively cutting costs, but worldwide economic conditions and competition caused us to conclude that more must be done, and faster. This is not a general downsizing but instead is an initiative to streamline our operations throughout the company and further strengthen our competitive position. It leaves intact the major programs and projects that are necessary to serve our customres around the world in a leadership fashion."
 By taking the entire $41 million pre-tax charge in 1991 rather than over the next five years, financial performance in those years will be better than would otherwise have been the case. The charge will be more than offset by resulting lower costs within the next three years, and by additional savings after that.
 The workforce reduction, to be achieved through retirements, attrition and layoffs, is expected to amount to about 5 percent of the company's current total worldwide employment of about 18,000. Most of the layoffs are expected to occur among the company's salaried employees.
 The Timken Company is a leading international manufacturer of highly engineered bearings and alloy steels. The company employs some 18,000 people worldwide and recorded 1990 sales of more than $1.7 billion.
 -0- 12/19/91
 /CONTACT: Keith J. Price, 216-471-3825, or Michael L. Johnson, 216-471-3910, both of The Timken Company/
 (TKR) CO: The Timken Company ST: Ohio IN: AUT SU:


LC -- CL005 -- 3743 12/19/91 09:23 EST
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Publication:PR Newswire
Date:Dec 19, 1991
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