CANTON, Ohio -- The Timken Co. has reported sales of $1.43 billion during the first quarter of 2008, an increase of 12 percent over the same period a year ago. The increase was driven by strong sales in global industrial markets, as the company benefited from its capacity-expansion initiatives, as well as the favorable impact of pricing, surcharges and currency.

First-quarter income from continuing operations was $84.5 million, or 88 cents per diluted share, compared to $74.3 million, or 78 cents per diluted share, in the first quarter of 2007. Excluding special items, income from continuing operations increased 26 percent to $78.9 million or 82 cents per diluted share for the first quarter of 2008, compared to $62.5 million or 66 cents per diluted share in the prior-year period. Strong first-quarter earnings benefited from favorable pricing, volume, mix and currency, which were partially offset by higher LIFO charges related to increased material costs. Special items, net of tax, in the first quarter of 2008 totaled $5.6 million of income compared to $11.8 million of income in the same period last year and included a gain on a real estate divestment associated with a prior plant closure, partially offset by charges related to restructuring, rationalization and impairment.

“We achieved record first-quarter earnings as execution of our strategic initiatives and a more efficient operating model allowed us to take better advantage of continued strong global demand for our industrial products,” said James Griffith, Timken’s president and chief executive officer. “We continue to have a positive outlook for 2008 performance as we bring more capacity online in attractive markets and advance our pricing and execution initiatives.”

The company expects earnings per diluted share for 2008, excluding special items, to be $2.75 to $2.95 for the year and 73 cents to 83 cents for the second quarter, compared to $2.40 and 73 cents, respectively, for the same periods in 2007. Global industrial demand is expected to remain strong in 2008 as additional capacity comes online in key growth markets. The company said it will continue to pursue pricing, portfolio management and better execution to improve operating results, which are expected to contribute to anticipated record performance for the company in 2008.

For more information about Timken, go to: www.timken.com.