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TIMKEN COMPANY REPORTS LOWER SALES AND NET LOSS FOR FOURTH QUARTER AND 1991

 TIMKEN COMPANY REPORTS LOWER SALES AND NET LOSS
 FOR FOURTH QUARTER AND 1991
 CANTON, Ohio, Jan. 31 /PRNewswire/ -- The Timken Company (NYSE: TKR) today reported lower sales and a net loss for the fourth quarter and year ended Dec. 31, 1991.
 The fourth quarter included a previously announced $41.0 million pre-tax charge ($26.7 million after taxes) for a five-year program to streamline operations and improve results. This will strengthen the company's long-term position, significantly reduce costs and dispose of certain non-strategic assets. Net sales for the fourth quarter of 1991 decreased 10.8 percent to $388.1 million from $435.1 million in the year-earlier period. The net loss for the fourth quarter of 1991 was $36.2 million, compared with a net profit of $2.2 million in the year-earlier quarter. The company lost $1.22 per share in the fourth quarter of 1991 and earned $.08 per share in 1990's fourth quarter.
 Excluding the $41.0 million provision, the net loss for the fourth quarter of 19 91 was $9.6 million ($.32 per share) compared with a net profit of $2.2 million ($.08 per share) in the fourth quarter of 1990.
 The company's Bearing Business had lower sales volume and slightly improved selling prices in the fourth quarter of 1991 compared with the year-earlier period. Fourth quarter sales volume in the company's Steel Business was significantly lower, while overall selling prices were slightly lower.
 "The business environment of 1991 was one of the most difficult in many years," said W.R. Timken Jr., chairman - board of directors. "Worldwide recession hit every major market important to The Timken Company and seriously hurt our financial results, which were disappointing.
 "Despite these poor business conditions, we were able to maintain our competitiveness and increase penetration in important market segments."
 Net sales for 1991 were $1.6 billion, down 3.2 percent from 1990's record $1.7 billion. Excluding sales of MPB Corporation, which was acquired in May 1990, the company's net sales fell 7.4 percent in 1991 compared with 1990. The net loss was $35.7 million ($1.21 per share) in 1991 compared with net income of $55.2 million ($1.85 per share) in 1990.
 The company's Bearing Business experienced slightly higher selling prices in 1991 compared with 1990, which were more than offset by a decrease in sales volume. The company's Steel Business recognized a slight decrease in sales volume during 1991 in comparison with 1990, as well as lower selling prices, a less favorable product mix and reduced raw material costs.
 In addition, both businesses had higher employment costs and experienced manufacturing inefficiencies caused by reduced plant utilization levels, which were due to lower sales demand and efforts to reduce product inventories. The company made changes to its operating practices that reduced the amount of inventories required to support operations. Total inventories declined by $59.5 million in 1991.
 Although these changes lowered plant utilization and gross profit, the company will benefit from the reduced inventory requirements in 1992 and beyond.
 "During the year, we took actions to bring operations into alignment with current market conditions. These included temporary salary reductions, work force reductions and intensified efforts to reduce operating costs and achieve greater efficiency in our global operations," said Timken. "These efforts, coupled with close management of our working capital, enabled us to maximize cash flow."
 The Timken Company (NYSE: TKR) is a leading international manufacturer of highly engineered bearings and alloy steels. The company employs some 18,000 people worldwide.
 Financial Summary -- The Timken Company and Subsidiaries
 Consolidated Statements of Income
 Fourth Quarter Ended Dec. 31
 (Thousands of dollars, except 1991 1990
 per share data)
 Net Sales $388,104 $435,065
 Cost of products sold 305,504 345,741
 Gross Profit $82,600 $89,324
 Selling, administrative, general
 expenses 72,247 77,688
 Provision for restructuring 41,000 ---
 Operating Income (Loss) (30,647) $11,636
 Other income (expense):
 Interest expense (7,406) (8,022)
 Other income (expense) - Net: (5,870) (177)
 Income (Loss) Before Taxes ($43,923) $3,437
 Provision for income taxes (7,713) 1,220
 Net Income (Loss) ($36,210) $2,217
 Net Income (Loss) Per Share ($1.22) $0.08
 Average shares outstanding 29,781,609 29,425,335
 (Thousands of dollars, Year Ended Dec. 31
 except per share data) 1991 1990
 Net Sales $1,647,425 $1,701,011
 Cost of products sold 1,309,893 1,284,232
 Gross Profit $337,532 $416,779
 Selling, administrative, general
 expenses 297,660 286,427
 Provision for restructuring 41,000 ---
 Operating Income (Loss) ($1,128) $130,352
 Other income (expense):
 Interest expense ($26,673) ($26,339)
 Other income (expense) - Net: (14,149) (5,197)
 Income (Loss) Before Taxes ($41,950) $98,816
 Provision for income taxes (6,263) 43,574
 Net Income (Loss) ($35,687) $55,242
 Net Income (Loss) Per Share ($1.21) $1.85
 Average shares outstanding 29,599,552 29,904,685
 Consolidated Balance Sheets
 Dec. 31 Dec. 31
 1991 1990
 (Thousands of dollars)
 ASSETS
 Cash and cash equivalents $ 2,273 $22,798
 Accounts receivable 188,182 213,523
 Inventories 320,076 379,543
 Other 51,965 42,001
 Total Current Assets $562,496 $657,865
 Property, plant & equipment 1,058,872 1,025,565
 Other assets 137,771 131,479
 Total assets $1,759,139 $1,814,909
 LIABILITIES
 Accounts payable and other
 liabilities $169,442 $148,335
 Short-term debt and commercial
 paper 138,521 152,542
 Accrued expenses 105,583 118,502
 Total Current Liabilities $413,546 $419,379
 Long-term debt 134,583 113,850
 Accrued pension cost 90,022 94,199
 Deferred income taxes 102,017 112,780
 Total Liabilities $740,168 $740,208
 SHAREHOLDERS' EQUITY $1,018,971 $1,074,701
 Total Liabilities & Equity $1,759,139 $1,814,909
 -0- 1/31/92
 /CONTACT: Keith Price, 216-471-3825 or Michael Johnson, 216-471-3910, both of The Timken Company/
 (TKR) CO: The Timken Company ST: Ohio IN: AUT SU: ERN


KK -- CL002 -- 5455 01/31/92 07:58 EST
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