Timken Raises Second Quarter, Full Year 2006 Earnings Estimates

The Timken Company (NYSE: TKR) today announced estimated 2006 second quarter earnings per diluted share of approximately $0.79, up from $0.73 per diluted share for the same period a year ago. Excluding the impact of special items, the company estimates 2006 second quarter earnings per diluted share of $0.89, up from the previous estimate of $0.75 to $0.80 per diluted share and above last year's second quarter earnings of $0.77 per diluted share. The difference between reported and adjusted earnings is due primarily to restructuring and rationalization charges and the impact from asset dispositions. "We are pleased to deliver another strong quarter for our shareholders," said James W. Griffith, Timken president and chief executive officer. "Our better-than-expected results reflect the continued strength of our industrial markets as well as improved execution. Steel Group performance, in particular, was very good in the second quarter, due to both market demand and productivity gains. Second quarter results also benefited from lower pension and retiree medical expenses." The company continues to expect improved performance in the second half of 2006, compared to a year ago. As a result of its second quarter 2006 performance and a better outlook for the remainder of the year, the company is increasing its earnings estimate for the full year to $3.00 to $3.15 per diluted share, excluding special items. The company's prior earnings estimate for 2006 was $2.80 to $2.95 per diluted share, excluding special items. Timken will announce 2006 second quarter results on July 26, 2006, prior to the opening of the New York Stock Exchange. The company will host a conference call that day for investors and securities analysts to discuss the financial results.