The Timken Company Reports First Quarter Results

Apr 17, 2001, 01:00 ET from The Timken Company

    CANTON, Ohio, April 17 /PRNewswire/ -- The Timken Company (NYSE:   TKR)
 today reported that sales began improving during the first quarter of 2001,
 but fell short of sales achieved in the first quarter of 2000.  First quarter
 net sales were $661.5 million, down from $685.8 million in the first quarter
 of 2000.  Dampening results were declining automotive demand and weak North
 American markets.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991012/TKRLOGO )
     The same economic forces also held down earnings.  First quarter net
 income, excluding pretax restructuring, reorganization and impairment charges
 was $9.9 million, or $.16 per diluted share, versus $26.1 million, or $.43 per
 diluted share, in the first quarter of 2000. The first quarter of 2001
 included pretax charges of $12.5 million, and the first quarter of 2000
 included pretax charges of $16.8 million, related to the company's
 restructuring and reorganization.   Including these charges, net income in
 first quarter of 2001 was $2.2 million, or $.04 per diluted share, versus
 $16.0 million, or $.26 per diluted share, a year ago.
     "The sales improvement over late last year came despite automotive light
 vehicle production that was slightly below the fourth quarter of last year's
 depressed rate. Heavy truck production is down significantly and industrial
 and rail markets in North America also remain weak," said W.R. Timken, Jr.,
 chairman and chief executive officer.  "We are continuing to accelerate our
 efforts to transform the way we do business, specifically improving the
 capability of our manufacturing operations.  In addition, we are becoming
 increasingly productive throughout our worldwide organization."
     During the first quarter of 2001, the company completed a $55 million
 program of restructuring actions begun in the first quarter of 2000.  The
 company expects that program to deliver savings at an annual rate of $29
 million before taxes by the end of this year.
     For the first time, Timken is reporting results of operations in the
 following three expanded segments:
 
     Automotive Bearings Business Results
     The Automotive Bearings Business includes passenger cars, light and heavy
 trucks and trailers.  The continuing decline in global automotive markets that
 began in the second half of 2000 hurt sales of automotive bearings in the
 first quarter of 2001.  Global Automotive Bearings' sales for the first
 quarter of 2001 decreased 18 percent to $194.3 million, from last year's
 record level in the first quarter.  North American automotive bearing sales
 were down 21 percent, reflecting weakness in all vehicle segments, including
 passenger cars, light and heavy trucks and trailers.  In Europe, automotive
 bearing sales were off from the prior year, as demand for passenger cars
 slowed while truck demand remained stable.  For the rest of the world,
 automotive bearing sales also fell.
     Earnings before interest and taxes (EBIT) and before restructuring and
 reorganization charges were a loss of $1.6 million in the first quarter of
 2001, due to lower sales volume than a year ago and plant shutdowns to control
 inventory.  In the first quarter of 2000, EBIT was $16.6 million, excluding
 restructuring and reorganization charges.  Including $0.4 million in
 restructuring and reorganization charges, first quarter 2001 EBIT was a loss
 of $2.0 million.  This compares with EBIT of $16.5 million in the first
 quarter of 2000, which included restructuring and reorganization charges of
 $0.1 million.
 
     Industrial Bearings Business Results
     The Industrial Bearings segment includes industrial, rail, aerospace and
 super precision products as well as emerging markets.  Demand for industrial
 products has remained flat in North America compared to the first quarter of
 2000.  Industrial product demand in Europe has strengthened from last year's
 levels.  Aerospace sales in both North America and Europe continue to improve
 over the previous year, while super precision bearing demand remains
 unchanged.
     Industrial Bearings' net sales were $242.0 million, an increase of 4
 percent over the first quarter of 2000.  Sales of industrial products
 increased, with strong sales in Europe offsetting weakening European
 currencies and flat demand in North America.  Rail sales outside North America
 were up significantly over last year's first quarter, but were not enough to
 overcome poor market conditions in North American rail markets.  A weak
 economy in India also affected sales in the Industrial segment. Aerospace and
 super precision product sales were higher than the first quarter of 2000, led
 by improving aerospace demand and increased sales to dental handpiece
 customers.  Included in the quarter were sales from the company's recent
 acquisition of a dental handpiece repair and service company.
     Unfavorable product mix, sluggish North American industrial aftermarket
 sales and manufacturing shutdowns to control inventory reduced profitability
 in the first quarter of 2001 compared with the prior year.  EBIT, excluding
 restructuring and reorganization charges, was $15.5 million, down 18 percent
 from $19 million a year ago.  Improved performances in aerospace and super
 precision were not enough to offset a decline in profitability in the overall
 Industrial segment.  Including $10.7 million in restructuring and
 reorganization charges, the segment had EBIT of $4.8 million in the first
 quarter of 2001.  This compares with EBIT of $15.7 million in the first
 quarter of 2000, which included $3.4 million in restructuring and
 reorganization charges.
 
     Steel Business Results
     For the first quarter of 2001, Steel's net sales of $267.7 million,
 including intersegment sales, were 1 percent lower than the previous year.
 Sales to oil country and aerospace customers were up and shipments of bar
 products to service center and industrial customers also increased.  Shipments
 of higher-value products for automotive and bearing applications were down
 from a year ago.  This as well as significantly higher energy costs reduced
 Steel's profitability compared to a year ago. Natural gas costs in the first
 quarter of 2001 were more than twice as high as they were in the same quarter
 of 2000.  Excluding restructuring and reorganization charges, Steel EBIT in
 the first quarter of 2001 improved over the third and fourth quarters of last
 year, but fell below the first quarter of 2000.  In the first quarter of 2001,
 excluding restructuring charges of $1.4 million, Steel EBIT was $10.7 million.
 This compares with EBIT of $16.1 million in the first quarter of 2000,
 excluding restructuring and reorganization charges of $13.3 million.
 Including these charges, Steel EBIT was $9.3 million in the first quarter of
 2001 versus $2.8 million a year ago.
     The Timken Company is a leading international manufacturer of highly
 engineered bearings, alloy and specialty steels and components, as well as
 related products and services.  With operations in 24 countries, the company
 employs about 20,500 people worldwide and recorded sales of U.S. $2.6 billion
 in 2000.
     On April 18 at 10 a.m. Eastern Time, the company will conduct a
 teleconference at (712) 257-2760 (access code: Timken) and webcast at
 www.timken.com .  Replay is available at (402) 280-9944 from noon on April 18
 to 11:59 p.m. on April 25.
     Note: The statements in this news release that are not historical in
 nature may be construed as forward-looking.  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
 international economic conditions, continuing currency issues, customer demand
 and the company's ability to achieve the benefits of its restructuring program
 and its continuous improvement initiatives.  These and additional factors are
 described in greater detail in the company's 2000 Annual Report, page 39, and
 in the company's Annual Report on Form 10-K for the year ended December 31,
 2000.  The company undertakes no obligation to update any forward-looking
 statement.
 
     CONSOLIDATED STATEMENT OF INCOME
     (Thousands of U.S. dollars, except
       share data)                              1Q 01       1Q 00       4Q 00
     Net sales                                $661,516    $685,791    $631,711
     Cost of products sold                     543,502     540,826     527,824
      Gross Profit                            $118,014    $144,965    $103,887
     Selling, administrative & general
      expenses                                  96,538      94,145      93,319
     Impairment and restructuring                7,907      14,759       6,220
      Operating Income                         $13,569     $36,061      $4,348
     Other income (expense)                     (1,210)     (2,655)      1,048
      Earnings Before Interest and Taxes
       (EBIT)                                  $12,359     $33,406      $5,396
     Interest expense                           (8,894)     (7,222)     (9,148)
     Interest income                               489         549         635
      Income Before Income Taxes                $3,954     $26,733     ($3,117)
     Provision for income taxes                  1,732      10,693      (4,040)
         Net Income                             $2,222     $16,040        $923
 
        Earnings Per Share                       $0.04       $0.26       $0.02
        Earnings Per Share-assuming
         dilution                                $0.04       $0.26       $0.02
 
     Average Shares Outstanding             59,981,237  61,099,962  59,980,285
     Average Shares Outstanding-assuming
      dilution                              60,122,806  61,237,143  60,103,733
 
     CONSOLIDATED STATEMENT OF INCOME
     (Thousands of U.S. dollars, except
      share data)                                   3Q 00             2Q 00
     Net sales                                     $632,243          $693,263
     Cost of products sold                          522,698           550,787
      Gross Profit                                 $109,545          $142,476
     Selling, administrative & general
      expenses                                       88,920            91,115
     Impairment and restructuring                     3,453             3,322
      Operating Income                              $17,172           $48,039
     Other income (expense)                          (1,388)           (3,585)
      Earnings Before Interest and
       Taxes (EBIT)                                 $15,784           $44,454
     Interest expense                                (8,081)           (7,471)
     Interest income                                  1,735               560
      Income Before Income Taxes                     $9,438           $37,543
     Provision for income taxes                       1,753            16,303
      Net Income                                     $7,685           $21,240
 
        Earnings Per Share                            $0.13             $0.35
        Earnings Per Share-assuming
         dilution                                     $0.13             $0.35
 
     Average Shares Outstanding                  60,283,189        60,837,740
     Average Shares Outstanding-assuming
      dilution                                   60,422,761        61,103,848
 
     BUSINESS SEGMENTS
     (Thousands of U.S.
     dollars)                   1Q 01     1Q 00     4Q 00     3Q 00     2Q 00
     Automotive Bearings
     Net sales to external
      customers               $194,257  $237,571  $184,444  $190,315  $227,508
     Impairment and
      restructuring                 82        96       172       165       710
     Earnings before interest
      and taxes (EBIT) *       ($1,986)  $16,480     ($763)  ($2,556)  $11,434
     EBIT Margin                  -1.0%      6.9%     -0.4%     -1.3%      5.0%
 
     Industrial Bearings
     Net sales to external
      customers               $241,994  $232,803  $227,968  $224,180  $238,526
     Impairment and
      restructuring              7,393     1,813     4,186     2,985     2,515
     Earnings before interest
      and taxes (EBIT) *        $4,774   $15,653   $13,589    $9,860   $15,202
     EBIT Margin                   2.0%      6.7%      6.0%      4.4%      6.4%
 
     Steel
     Net sales to external
      customers               $225,265  $215,417  $219,299  $217,748  $227,229
     Intersegment sales         42,477    55,582    38,969    50,617    51,332
     Total net sales          $267,742  $270,999  $258,268  $268,365  $278,561
     Impairment and
      restructuring                432    12,850     1,862       303        97
     Earnings before interest
      and taxes (EBIT) *        $9,282    $2,791   ($8,179)   $8,002   $16,735
     EBIT Margin                   3.5%      1.0%     -3.2%      3.0%      6.0%
 
     * Automotive Bearings, Industrial Bearings and Steel EBIT do not equal
       Consolidated EBIT due to intersegment adjustments which are eliminated
       upon consolidation.
 
 
     CONSOLIDATED BALANCE SHEET                 Mar 31      Dec 31     Sept 30
     (Thousands of U.S. dollars)                 2001        2000        2000
     ASSETS
     Cash & cash equivalents                   $18,872     $10,927      18,921
     Accounts receivable                       404,343     354,972     380,111
     Deferred income taxes                      44,903      43,094      35,421
     Inventories                               488,396     489,549     500,599
         Total Current Assets                 $956,514    $898,542    $935,052
     Property, plant & equipment             1,331,867   1,363,772   1,335,307
     Other assets                              312,710     301,791     218,765
         Total Assets                       $2,601,091  $2,564,105  $2,489,124
 
     LIABILITIES
     Accounts payable & other liabilities     $246,557    $239,182    $233,743
     Short-term debt & commercial paper        259,779     209,423     212,693
     Accrued expenses                          145,223     138,847     164,325
         Total Current Liabilities            $651,559    $587,452    $610,761
     Long-term debt                            303,592     305,181     305,624
     Accrued pension cost                      233,633     237,952     128,892
     Accrued postretirement benefits           399,252     394,097     398,039
     Deferred income taxes                      10,090      11,742       3,780
     Other non-current liabilities              18,690      22,999      29,258
         Total Liabilities                  $1,616,816  $1,559,423  $1,476,354
 
     SHAREHOLDERS' EQUITY                      984,275   1,004,682   1,012,770
         Total Liabilities and
          Shareholders' Equity              $2,601,091  $2,564,105  $2,489,124
 
     CONSOLIDATED BALANCE SHEET                     June 30            Mar 31
     (Thousands of U.S. dollars)                      2000              2000
     ASSETS
     Cash & cash equivalents                         $6,450            $9,620
     Accounts receivable                            406,157           394,033
     Deferred income taxes                           38,929            39,901
     Inventories                                    484,376           478,387
         Total Current Assets                      $935,912          $921,941
     Property, plant & equipment                  1,344,491         1,349,779
     Other assets                                   229,569           220,562
         Total Assets                            $2,509,972        $2,492,282
 
     LIABILITIES
     Accounts payable & other liabilities          $248,285          $241,101
     Short-term debt & commercial paper             181,620           141,288
     Accrued expenses                               176,514           205,823
         Total Current Liabilities                 $606,419          $588,212
     Long-term debt                                 305,908           326,302
     Accrued pension cost                           115,087           101,456
     Accrued postretirement benefits                396,705           395,531
     Deferred income taxes                           19,279             5,453
     Other non-current liabilities                   31,343            32,643
         Total Liabilities                       $1,474,741        $1,449,597
 
     SHAREHOLDERS' EQUITY                         1,035,231         1,042,685
         Total Liabilities and
          Shareholders' Equity                   $2,509,972        $2,492,282
 
 

SOURCE The Timken Company
    CANTON, Ohio, April 17 /PRNewswire/ -- The Timken Company (NYSE:   TKR)
 today reported that sales began improving during the first quarter of 2001,
 but fell short of sales achieved in the first quarter of 2000.  First quarter
 net sales were $661.5 million, down from $685.8 million in the first quarter
 of 2000.  Dampening results were declining automotive demand and weak North
 American markets.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991012/TKRLOGO )
     The same economic forces also held down earnings.  First quarter net
 income, excluding pretax restructuring, reorganization and impairment charges
 was $9.9 million, or $.16 per diluted share, versus $26.1 million, or $.43 per
 diluted share, in the first quarter of 2000. The first quarter of 2001
 included pretax charges of $12.5 million, and the first quarter of 2000
 included pretax charges of $16.8 million, related to the company's
 restructuring and reorganization.   Including these charges, net income in
 first quarter of 2001 was $2.2 million, or $.04 per diluted share, versus
 $16.0 million, or $.26 per diluted share, a year ago.
     "The sales improvement over late last year came despite automotive light
 vehicle production that was slightly below the fourth quarter of last year's
 depressed rate. Heavy truck production is down significantly and industrial
 and rail markets in North America also remain weak," said W.R. Timken, Jr.,
 chairman and chief executive officer.  "We are continuing to accelerate our
 efforts to transform the way we do business, specifically improving the
 capability of our manufacturing operations.  In addition, we are becoming
 increasingly productive throughout our worldwide organization."
     During the first quarter of 2001, the company completed a $55 million
 program of restructuring actions begun in the first quarter of 2000.  The
 company expects that program to deliver savings at an annual rate of $29
 million before taxes by the end of this year.
     For the first time, Timken is reporting results of operations in the
 following three expanded segments:
 
     Automotive Bearings Business Results
     The Automotive Bearings Business includes passenger cars, light and heavy
 trucks and trailers.  The continuing decline in global automotive markets that
 began in the second half of 2000 hurt sales of automotive bearings in the
 first quarter of 2001.  Global Automotive Bearings' sales for the first
 quarter of 2001 decreased 18 percent to $194.3 million, from last year's
 record level in the first quarter.  North American automotive bearing sales
 were down 21 percent, reflecting weakness in all vehicle segments, including
 passenger cars, light and heavy trucks and trailers.  In Europe, automotive
 bearing sales were off from the prior year, as demand for passenger cars
 slowed while truck demand remained stable.  For the rest of the world,
 automotive bearing sales also fell.
     Earnings before interest and taxes (EBIT) and before restructuring and
 reorganization charges were a loss of $1.6 million in the first quarter of
 2001, due to lower sales volume than a year ago and plant shutdowns to control
 inventory.  In the first quarter of 2000, EBIT was $16.6 million, excluding
 restructuring and reorganization charges.  Including $0.4 million in
 restructuring and reorganization charges, first quarter 2001 EBIT was a loss
 of $2.0 million.  This compares with EBIT of $16.5 million in the first
 quarter of 2000, which included restructuring and reorganization charges of
 $0.1 million.
 
     Industrial Bearings Business Results
     The Industrial Bearings segment includes industrial, rail, aerospace and
 super precision products as well as emerging markets.  Demand for industrial
 products has remained flat in North America compared to the first quarter of
 2000.  Industrial product demand in Europe has strengthened from last year's
 levels.  Aerospace sales in both North America and Europe continue to improve
 over the previous year, while super precision bearing demand remains
 unchanged.
     Industrial Bearings' net sales were $242.0 million, an increase of 4
 percent over the first quarter of 2000.  Sales of industrial products
 increased, with strong sales in Europe offsetting weakening European
 currencies and flat demand in North America.  Rail sales outside North America
 were up significantly over last year's first quarter, but were not enough to
 overcome poor market conditions in North American rail markets.  A weak
 economy in India also affected sales in the Industrial segment. Aerospace and
 super precision product sales were higher than the first quarter of 2000, led
 by improving aerospace demand and increased sales to dental handpiece
 customers.  Included in the quarter were sales from the company's recent
 acquisition of a dental handpiece repair and service company.
     Unfavorable product mix, sluggish North American industrial aftermarket
 sales and manufacturing shutdowns to control inventory reduced profitability
 in the first quarter of 2001 compared with the prior year.  EBIT, excluding
 restructuring and reorganization charges, was $15.5 million, down 18 percent
 from $19 million a year ago.  Improved performances in aerospace and super
 precision were not enough to offset a decline in profitability in the overall
 Industrial segment.  Including $10.7 million in restructuring and
 reorganization charges, the segment had EBIT of $4.8 million in the first
 quarter of 2001.  This compares with EBIT of $15.7 million in the first
 quarter of 2000, which included $3.4 million in restructuring and
 reorganization charges.
 
     Steel Business Results
     For the first quarter of 2001, Steel's net sales of $267.7 million,
 including intersegment sales, were 1 percent lower than the previous year.
 Sales to oil country and aerospace customers were up and shipments of bar
 products to service center and industrial customers also increased.  Shipments
 of higher-value products for automotive and bearing applications were down
 from a year ago.  This as well as significantly higher energy costs reduced
 Steel's profitability compared to a year ago. Natural gas costs in the first
 quarter of 2001 were more than twice as high as they were in the same quarter
 of 2000.  Excluding restructuring and reorganization charges, Steel EBIT in
 the first quarter of 2001 improved over the third and fourth quarters of last
 year, but fell below the first quarter of 2000.  In the first quarter of 2001,
 excluding restructuring charges of $1.4 million, Steel EBIT was $10.7 million.
 This compares with EBIT of $16.1 million in the first quarter of 2000,
 excluding restructuring and reorganization charges of $13.3 million.
 Including these charges, Steel EBIT was $9.3 million in the first quarter of
 2001 versus $2.8 million a year ago.
     The Timken Company is a leading international manufacturer of highly
 engineered bearings, alloy and specialty steels and components, as well as
 related products and services.  With operations in 24 countries, the company
 employs about 20,500 people worldwide and recorded sales of U.S. $2.6 billion
 in 2000.
     On April 18 at 10 a.m. Eastern Time, the company will conduct a
 teleconference at (712) 257-2760 (access code: Timken) and webcast at
 www.timken.com .  Replay is available at (402) 280-9944 from noon on April 18
 to 11:59 p.m. on April 25.
     Note: The statements in this news release that are not historical in
 nature may be construed as forward-looking.  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
 international economic conditions, continuing currency issues, customer demand
 and the company's ability to achieve the benefits of its restructuring program
 and its continuous improvement initiatives.  These and additional factors are
 described in greater detail in the company's 2000 Annual Report, page 39, and
 in the company's Annual Report on Form 10-K for the year ended December 31,
 2000.  The company undertakes no obligation to update any forward-looking
 statement.
 
     CONSOLIDATED STATEMENT OF INCOME
     (Thousands of U.S. dollars, except
       share data)                              1Q 01       1Q 00       4Q 00
     Net sales                                $661,516    $685,791    $631,711
     Cost of products sold                     543,502     540,826     527,824
      Gross Profit                            $118,014    $144,965    $103,887
     Selling, administrative & general
      expenses                                  96,538      94,145      93,319
     Impairment and restructuring                7,907      14,759       6,220
      Operating Income                         $13,569     $36,061      $4,348
     Other income (expense)                     (1,210)     (2,655)      1,048
      Earnings Before Interest and Taxes
       (EBIT)                                  $12,359     $33,406      $5,396
     Interest expense                           (8,894)     (7,222)     (9,148)
     Interest income                               489         549         635
      Income Before Income Taxes                $3,954     $26,733     ($3,117)
     Provision for income taxes                  1,732      10,693      (4,040)
         Net Income                             $2,222     $16,040        $923
 
        Earnings Per Share                       $0.04       $0.26       $0.02
        Earnings Per Share-assuming
         dilution                                $0.04       $0.26       $0.02
 
     Average Shares Outstanding             59,981,237  61,099,962  59,980,285
     Average Shares Outstanding-assuming
      dilution                              60,122,806  61,237,143  60,103,733
 
     CONSOLIDATED STATEMENT OF INCOME
     (Thousands of U.S. dollars, except
      share data)                                   3Q 00             2Q 00
     Net sales                                     $632,243          $693,263
     Cost of products sold                          522,698           550,787
      Gross Profit                                 $109,545          $142,476
     Selling, administrative & general
      expenses                                       88,920            91,115
     Impairment and restructuring                     3,453             3,322
      Operating Income                              $17,172           $48,039
     Other income (expense)                          (1,388)           (3,585)
      Earnings Before Interest and
       Taxes (EBIT)                                 $15,784           $44,454
     Interest expense                                (8,081)           (7,471)
     Interest income                                  1,735               560
      Income Before Income Taxes                     $9,438           $37,543
     Provision for income taxes                       1,753            16,303
      Net Income                                     $7,685           $21,240
 
        Earnings Per Share                            $0.13             $0.35
        Earnings Per Share-assuming
         dilution                                     $0.13             $0.35
 
     Average Shares Outstanding                  60,283,189        60,837,740
     Average Shares Outstanding-assuming
      dilution                                   60,422,761        61,103,848
 
     BUSINESS SEGMENTS
     (Thousands of U.S.
     dollars)                   1Q 01     1Q 00     4Q 00     3Q 00     2Q 00
     Automotive Bearings
     Net sales to external
      customers               $194,257  $237,571  $184,444  $190,315  $227,508
     Impairment and
      restructuring                 82        96       172       165       710
     Earnings before interest
      and taxes (EBIT) *       ($1,986)  $16,480     ($763)  ($2,556)  $11,434
     EBIT Margin                  -1.0%      6.9%     -0.4%     -1.3%      5.0%
 
     Industrial Bearings
     Net sales to external
      customers               $241,994  $232,803  $227,968  $224,180  $238,526
     Impairment and
      restructuring              7,393     1,813     4,186     2,985     2,515
     Earnings before interest
      and taxes (EBIT) *        $4,774   $15,653   $13,589    $9,860   $15,202
     EBIT Margin                   2.0%      6.7%      6.0%      4.4%      6.4%
 
     Steel
     Net sales to external
      customers               $225,265  $215,417  $219,299  $217,748  $227,229
     Intersegment sales         42,477    55,582    38,969    50,617    51,332
     Total net sales          $267,742  $270,999  $258,268  $268,365  $278,561
     Impairment and
      restructuring                432    12,850     1,862       303        97
     Earnings before interest
      and taxes (EBIT) *        $9,282    $2,791   ($8,179)   $8,002   $16,735
     EBIT Margin                   3.5%      1.0%     -3.2%      3.0%      6.0%
 
     * Automotive Bearings, Industrial Bearings and Steel EBIT do not equal
       Consolidated EBIT due to intersegment adjustments which are eliminated
       upon consolidation.
 
 
     CONSOLIDATED BALANCE SHEET                 Mar 31      Dec 31     Sept 30
     (Thousands of U.S. dollars)                 2001        2000        2000
     ASSETS
     Cash & cash equivalents                   $18,872     $10,927      18,921
     Accounts receivable                       404,343     354,972     380,111
     Deferred income taxes                      44,903      43,094      35,421
     Inventories                               488,396     489,549     500,599
         Total Current Assets                 $956,514    $898,542    $935,052
     Property, plant & equipment             1,331,867   1,363,772   1,335,307
     Other assets                              312,710     301,791     218,765
         Total Assets                       $2,601,091  $2,564,105  $2,489,124
 
     LIABILITIES
     Accounts payable & other liabilities     $246,557    $239,182    $233,743
     Short-term debt & commercial paper        259,779     209,423     212,693
     Accrued expenses                          145,223     138,847     164,325
         Total Current Liabilities            $651,559    $587,452    $610,761
     Long-term debt                            303,592     305,181     305,624
     Accrued pension cost                      233,633     237,952     128,892
     Accrued postretirement benefits           399,252     394,097     398,039
     Deferred income taxes                      10,090      11,742       3,780
     Other non-current liabilities              18,690      22,999      29,258
         Total Liabilities                  $1,616,816  $1,559,423  $1,476,354
 
     SHAREHOLDERS' EQUITY                      984,275   1,004,682   1,012,770
         Total Liabilities and
          Shareholders' Equity              $2,601,091  $2,564,105  $2,489,124
 
     CONSOLIDATED BALANCE SHEET                     June 30            Mar 31
     (Thousands of U.S. dollars)                      2000              2000
     ASSETS
     Cash & cash equivalents                         $6,450            $9,620
     Accounts receivable                            406,157           394,033
     Deferred income taxes                           38,929            39,901
     Inventories                                    484,376           478,387
         Total Current Assets                      $935,912          $921,941
     Property, plant & equipment                  1,344,491         1,349,779
     Other assets                                   229,569           220,562
         Total Assets                            $2,509,972        $2,492,282
 
     LIABILITIES
     Accounts payable & other liabilities          $248,285          $241,101
     Short-term debt & commercial paper             181,620           141,288
     Accrued expenses                               176,514           205,823
         Total Current Liabilities                 $606,419          $588,212
     Long-term debt                                 305,908           326,302
     Accrued pension cost                           115,087           101,456
     Accrued postretirement benefits                396,705           395,531
     Deferred income taxes                           19,279             5,453
     Other non-current liabilities                   31,343            32,643
         Total Liabilities                       $1,474,741        $1,449,597
 
     SHAREHOLDERS' EQUITY                         1,035,231         1,042,685
         Total Liabilities and
          Shareholders' Equity                   $2,509,972        $2,492,282
 
 SOURCE  The Timken Company

RELATED LINKS

http://www.timken.com