- Posted fourth-quarter sales of $892 million, down less than one percent from last year

- Fourth-quarter earnings per diluted share were $0.69 on a GAAP basis, with adjusted EPS of $0.84

- Achieved full-year 2020 earnings per diluted share of $3.72 on a GAAP basis, with adjusted EPS of $4.10

- Generated strong full-year 2020 net operating cash flow of $578 million and free cash flow of $456 million

- Company expects strong revenue growth in 2021; sets initial outlook for 2021 earnings per diluted share of $4.45-$4.85 on a GAAP basis, with adjusted EPS of $4.70 to $5.10

The Timken Company (NYSE: TKR; www.timken.com), a world leader in engineered bearings and power transmission products, today reported fourth-quarter 2020 sales of $891.7 million, down 0.5 percent from the same period a year ago, as the net impact of lower demand offset the favorable impact of acquisitions, currency translation and pricing.

Timken posted net income of $53.1 million or $0.69 per diluted share in the fourth quarter, versus net income of $113.5 million or $1.48 per diluted share for the same period a year ago. The year-over-year decrease in GAAP net income was primarily driven by the net unfavorable impact of special items (detailed in the attached tables), including pension remeasurements and discrete taxes.

Excluding special items, adjusted net income in the fourth quarter was $65.0 million or $0.84 per diluted share versus adjusted net income of $64.3 million or $0.84 per diluted share for the same period in 2019. The slight increase in adjusted net income reflects lower operating expenses resulting from cost reduction initiatives and reduced interest and tax expense, which offset the impact of lower volume and unfavorable price/mix and currency.

Net cash from operations for the fourth quarter was $120.5 million, and free cash flow was $84.6 million. During the quarter, Timken returned $29 million of cash to shareholders with the payment of its 394th consecutive quarterly dividend and the repurchase of 100 thousand shares of company stock. Timken also completed the acquisition of the assets of Aurora Bearing Company, which builds on the company's global leadership in engineered bearings.

"Fourth quarter revenue came in above our expectations, and we generated strong cash flow to finish out a solid year in a turbulent market environment," said Richard G. Kyle, Timken president and chief executive officer. "Our full-year operating margin performance was very good despite the decline in revenue from the global pandemic. In 2020, Timken demonstrated its resiliency and ability to generate strong financial performance through challenging end markets. During the COVID-19 pandemic, we prioritized employee safety, served customers, reduced costs and strengthened our financial position, while investing for future growth. This performance demonstrates the power of Timken