CANTON, Ohio, April 18 /PRNewswire-FirstCall/ -- The Timken Company (NYSE: TKR) today announced estimated 2006 first quarter earnings per diluted share of approximately $0.70, up from $0.63 per diluted share for the same period a year ago. Excluding the impact of special items, the company estimates 2006 first quarter earnings per diluted share of $0.71, compared to $0.64 for last year's first quarter. This compares favorably with the company's previous estimate for the first quarter of 2006 of $0.55 to $0.60 per diluted share, excluding special items. The difference between reported and adjusted earnings is due primarily to manufacturing rationalization charges.
"We are seeing continued strong demand from industrial markets. This has translated into better-than-expected first quarter performance in our steel business. The steel group benefited from a combination of strength in aerospace and energy-related markets, high capacity utilization and productivity and a lower-than-expected increase in natural gas costs," said James W. Griffith, Timken president and chief executive officer.
As a result of its first quarter performance, the company has increased its earnings estimate for the full year to $2.80 to $2.95 per diluted share, excluding special items. The company's prior earnings estimate for 2006 was $2.65 to $2.80 per diluted share, excluding special items.
Timken will announce 2006 first quarter results on April 27, 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.
Conference Call: Thursday, April 27, 2006
11 a.m. Eastern Daylight Time
All Callers: Live Dial-In: 706-634-0975
(Call in 10 minutes prior
to be included)
Replay Dial-In
through May 4, 2006:
706-645-9291
Conference ID: #5676501
Live Webcast: www.timken.com/investors
About The Timken Company
The Timken Company (NYSE: TKR, www.timken.com) keeps the world turning, with innovative ways to make customers' products run smoother, faster and more efficiently. Timken's highly engineered bearings, alloy steels and related products and services turn up everywhere. With operations in 27 countries, sales of $5.2 billion in 2005 and 27,000 employees, Timken is Where You Turn™ for better performance.
Certain statements in this news release (including statements regarding the Company's estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the completion of the Company's financial statements for the first quarter of 2006, which have not been finalized and are subject to change; fluctuations in raw material and energy costs and the operation of the Company's surcharge mechanisms; the Company's ability to respond to the changes in its end markets; changes in the financial health of the Company's customers; and the impact on operations of general economic conditions, higher raw material and energy costs, fluctuations in customer demand and the Company's ability to achieve the benefits of its future and ongoing programs and initiatives, including the implementation of its Automotive Group restructuring, the rationalization of the Company's Canton bearing operations, manufacturing transformation and rationalization activities. These and additional factors are described in greater detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2005, page 65. The Company undertakes no obligation to update or revise any forward-looking statement.
Media Contact: Denise Bowler, Manager-Global Corporate & Financial
Communications, Telephone: (330) 471-3485, Facsimile: (330) 471-7032,
denise.bowler@timken.com
Investor Contact: Steve Tschiegg, Manager - Investor Relations,
Telephone: (330) 471-7446, Facsimile: (330) 471-2797,
steve.tschiegg@timken.com
Reconciliation of GAAP estimated earnings per share - diluted (Unaudited)
This reconciliation is provided as additional relevant information about the company's performance. Management believes adjusted earnings per share are more representative of the company's performance and therefore useful to investors. Management also believes that it is appropriate to compare GAAP earnings per share to adjusted earnings per share in light of pre-tax special items.
First First
Quarter Quarter
2006 2005
(Dollars per fully diluted share)
Earnings per share,
assuming dilution $0.70 $0.63
Pre-tax special items $0.03 $0.01
Tax effect of special items ($0.02) $0.00
Adjusted earnings per share,
assuming dilution $0.71 $0.64
Reconciliation of 2006 Earnings Estimate
Estimated expected earnings per diluted share for the full year exclude special items. Examples of such special items include impairment and restructuring, manufacturing rationalization/integration/reorganization expenses, gain or loss on the sale of assets, and payments under the Continued Dumping and Subsidy Offset Act (CDSOA.) It is not possible at this time to identify the potential amount or significance of these special items. We cannot predict whether we will receive any additional payments under the CDSOA in 2006 and if so, in what amount. If we do receive any additional CDSOA payments, they will most likely be received in the fourth quarter.
SOURCE The Timken Company
CONTACT: Media, Denise Bowler, Manager-Global Corporate & Financial Communications, +1-330-471-3485, or facsimile, +1-330-471-7032, or
denise.bowler@timken.com, or Steve Tschiegg, Manager - Investor Relations, +1-330-471-7446, or facsimile, +1-330-471-2797, orsteve.tschiegg@timken.com, both of The Timken Company