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THE TIMKEN COMPANY REPORTS HIGHER EARNINGS ON LOWER SALES FOR FIRST QUARTER OF 1992

 THE TIMKEN COMPANY REPORTS HIGHER EARNINGS ON
 LOWER SALES FOR FIRST QUARTER OF 1992
 CANTON, Ohio, April 21 /PRNewswire/ -- The Timken Company (NYSE: TKR) today reported higher earnings on lower sales for the first quarter, ended March 31, 1992, compared to the same period in 1991.
 Net sales for the first quarter of 1992 decreased 3.5 percent to $420.9 million from $436.2 million a year earlier. Net income for the first quarter of 1992 was up 30.6 percent to $4.9 million from $3.8 million in the year-earlier period. The company earned $0.16 per share in the first quarter of 1992 and $0.13 per share in 1991's first quarter.
 The company's performance represents improvement from the second half of 1991. It had net losses of $4.0 million ($0.13 per share) in the third quarter and $36.2 million ($1.22 per share) in the fourth quarter of 1991. The fourth quarter loss included a $0.90 per share charge for restructuring. Sales for the first quarter of 1992 also showed improvement over the third and fourth quarters of 1991.
 "We are pleased to report increased earnings for the first quarter," said Joseph F. Toot, Jr., president. "While there are signs that the U.S. economy is beginning to improve, and that we are making progress, we still find ourselves in a very difficult business environment. Industrial sectors of the economy, which we serve, historically lag behind in economic recoveries."
 The company's Bearing Business had higher sales volume in the first quarter of 1992 compared to the year-earlier period. It had, however, a less favorable product mix, with the increased sales occurring in products with lower profit margins. The company's Steel Business had lower sales and a less favorable product mix.
 Several factors combined to improve net income. Selling, administrative and general expenses decreased $2.7 million to $73.3 million in the first quarter of 1992 compared to the year-earlier period. This was influenced by the temporary salary reduction implemented in August 1991 and the delay of certain expenditures.
 Interest expense was reduced by lower interest rates as it declined to $6.9 million in the first quarter of 1992 compared to $7.5 million a year earlier. Total debt increased to $290.0 million in the first quarter of 1992 from $255.5 million in 1991's first quarter.
 The effective income tax rate declined to 45.5 percent from the year earlier period rate of 57.1 percent due to a higher portion of earnings occurring in countries with lower effective tax rates.
 The Timken Company is a leading international manufacturer of highly engineered bearings and alloy steels. The company employs nearly 18,000 people worldwide and recorded 1991 sales of more than $1.6 billion.
 Financial Summary -- The Timken Company and Subsidiaries
 Consolidated Statements of Income
 (Thousands of dollars, First Quarter Ended March
 except per share data) 1992 1991
 Net Sales $420,936 $436,218
 Cost of products sold 330,166 341,211
 Gross Profit $90,770 $95,007
 Selling, administrative, general
 expenses 73,281 76,023
 Operating Income 17,489 18,984
 Other income (expense):
 Interest expense (6,923) (7,453)
 Other income (expense) - Net: (1,563) (2,770)
 Income Before Taxes $9,003 $8,761
 Provision for income taxes 4,096 5,005
 Net Income $4,907 $3,756
 Net Income Per Share $0.16 $0.13
 Average shares outstanding 29,950,425 29,405,438
 Consolidated Balance Sheets
 March 31 Dec. 31
 1992 1991
 (Thousands of dollars)
 ASSETS
 Cash and cash equivalents $8,216 $2,273
 Accounts receivable 227,399 188,182
 Inventories 310,661 320,076
 Other 40,089 51,965
 Total Current Assets $586,365 $562,496
 Property, plant & equipment 1,036,764 1,058,872
 Other assets 141,658 137,771
 Total assets $1,764,787 $1,759,139
 LIABILITIES
 Accounts payable and other
 liabilities $152,378 $169,442
 Short-term debt and commercial
 paper 156,484 138,521
 Accrued expenses 122,947 105,583
 Total Current Liabilities $431,809 $413,546
 Long-term debt 133,493 134,583
 Accrued pension cost 91,711 90,022
 Deferred income taxes 97,778 102,017
 Total Liabilities $754,791 $740,168
 SHAREHOLDERS' EQUITY $1,009,996 $1,018,971
 Total Liabilities & Equity $1,764,787 $1,759,139
 -0- 4/21/92 R
 /CONTACT: Keith Price of The Timken Company, 216-471-3825/
 (TKR) CO: The Timken Company ST: Ohio IN: AUT MAC SU: ERN


LC -- CL010 -- 0647 04/21/92 12:22 EDT
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Date:Apr 21, 1992
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