Park-Ohio (PKOH) 8-K Park-Ohio Pre-Tax Earnings Up in 2007

EXHIBIT 99.1

FOR IMMEDIATE RELEASE	CONTACT:	EDWARD F. CRAWFORD
		PARK-OHIO HOLDINGS CORP.
		(440) 947-2000

Park-Ohio Pre-Tax Earnings Up in 2007

     CLEVELAND, OHIO, March 11, 2008 — Park-Ohio Holdings Corp. (NASDAQ:PKOH) today announced results for its fourth quarter and year ended December 31, 2007.

FULL YEAR RESULTS

     Park-Ohio reported net sales of $1,071.4 million for 2007, a 1% increase compared to net sales of $1,056.2 million for 2006. Park-Ohio reported net income of $21.2 million, or $1.82 per share dilutive, for 2007, compared to $24.2 million, or $2.11 per share dilutive, for 2006. Net income in 2006 was increased by the reversal of $5.0 million of the Company’s deferred tax asset valuation allowance. Net sales, net income and EPS in 2007 were adversely impacted by $18.0 million, $2.6 million and $.23 per share dilutive, respectively, due to reduced percentage of completion on long-lead industrial equipment contracts, resulting from changes in computation methodology.

FOURTH QUARTER RESULTS

     Park-Ohio reported net sales of $247.8 million for fourth quarter 2007, an 8% decrease compared to sales of $270.4 million for fourth quarter 2006. Park-Ohio reported net income of $3.9 million, or $.34 per share dilutive, for fourth quarter 2007, compared to net income of $10.8 million, or $.94 per share dilutive, for fourth quarter 2006. Net income in fourth quarter 2006 was increased by the reversal of $5.0 million of the Company’s deferred tax asset valuation allowance. Net sales, net income and EPS in fourth quarter 2007 were adversely impacted by $18.0 million, $2.6 million and $.23 per share dilutive, respectively, due to reduced percentage of completion on long-lead industrial equipment contracts, resulting from changes in computation methodology.

     Edward F. Crawford, Chairman and Chief Executive Officer, stated, “We are pleased to have achieved double-digit growth in pre-tax earnings; although we are disappointed to have reported earnings below our expected profitability for 2007. This was caused by a change identified in the recent audit process, which altered the way we calculate percentage of completion in the rapidly growing industrial equipment businesses of our Manufactured Products segment. This change does not affect the underlying revenue or profitability of the business, but does delay recognition of revenue and earnings closer to shipment of long-lead industrial equipment when we outsource segments of the manufacturing process. These orders can take anywhere from a few months to as long as 20 months to produce.

     We believe that our prior methodology more accurately depicted the operational performance of the business, but have followed our outside auditor’s guidance on this matter. This shifted revenue and earnings from late 2007 into future periods. We are working hard to minimize the long-term impact of this recent change, and we expect to recapture this deferral.

-more-

     From an operations and cash perspective, 2007 was an excellent year for our industrial equipment businesses, and we expect them to grow in 2008. Going forward, this change will make Manufactured Products segment revenues and earnings lumpier and harder to forecast accurately by quarter.

     We believe Park-Ohio is well positioned with its diversity and global markets, despite concerns over uncertainty in pockets of the US economy, raw material prices, and the timing of large industrial equipment orders. Accordingly, we expect to generate diluted earnings per share of $2.10 to $2.25 in 2008.”

Table 1: Recent History of EPS, EBIT and Revenue

	Year ended December 31,
	2004	2005	2006	2007
Dilutive EPS, GAAP, as reported	$1.27	$2.70	$2.11	$1.82
Dilutive EPS, fully taxed(A)	$1.07	$1.58	$1.62	$1.82
Operating Income (EBIT) — [$ in millions]	$49.0	$53.5	$58.7	$62.7
Revenue	$808.7	$932.9	$1.056	$1.072
	(million)	(million)	(billion)	(billion)

(Note A) Reconciliation to GAAP
(In Millions, except EPS)

	Year ended
	December 31,
	2004			2005			2006			2007
Net Income (Loss), GAAP, as reported:	$	14.2		$	30.8		$	24.2		$	21.2
Less: Reversal of Tax Valuation Allowance(1)					(7.3	)		(5.0	)
Plus: Add’l Income Tax to 32% Rate before Reversal(2)		(2.2	)		(5.5	)		(0.6	)
Net Income, fully-taxed	$	12.0		$	18.0		$	18.6		$	21.2
Number of Dilutive Shares (millions)		11.2			11.4			11.46			11.65
Dilutive EPS, fully-taxed	$	1.07		$	1.58		$	1.62		$	1.82

The Company presents fully-taxed net income and EPS reflecting equalized tax rates to facilitate comparison between periods.

(1) Net income in fourth quarter 2006 and 2005 included the reversal of $5.0 million and $7.3 million, respectively, of the Company’s deferred tax asset valuation allowance, substantially eliminating this allowance. Based on strong recent and projected earnings, the Company has determined that it is more likely than not that this deferred tax asset will be realized. The tax valuation allowance reversal resulted in an increase to net income for the fourth quarter of each year.

(2) In 2006, following the reversal of a portion of its deferred tax valuation allowance, the Company began recording a quarterly provision for federal income taxes. For 2007, the Company’s effective income tax rate was 32%, compared to 30%, 11% and 19% for 2006, 2005 and 2004, respectively, excluding the tax valuation allowance reversal. Park-Ohio’s net operating loss carry-forward precluded the payment of most cash federal income taxes in 2006 and 2007, and should similarly preclude such payments in 2008 and substantially reduce them in 2009.

     A conference call reviewing Park-Ohio’s fourth quarter results will be broadcast live over the Internet on Wednesday, March 12, commencing at 9:00 am Eastern Time. Simply log on tohttp://www.pkoh.com.

-more-

     Park-Ohio is a leading provider of supply management services and a manufacturer of highly engineered products. Headquartered in Cleveland, Ohio, the Company operates 24 manufacturing sites and 51 supply chain logistics facilities.

     This news release contains forward-looking statements, including statements regarding future performance of the Company that are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected.

     Among the key factors that could cause actual results to differ materially from expectations are: the cyclical nature of the vehicular industry; timing of cost reductions; labor availability and stability; changes in economic and industry conditions; adverse impacts to the Company, its suppliers and customers from acts of terrorism or hostilities; the financial condition of the Company’s customers and suppliers, including the impact of any bankruptcies; the Company’s ability to successfully integrate the operations of acquired companies; the uncertainties of environmental, litigation or corporate contingencies; and changes in regulatory requirements. These and other risks and assumptions are described in the Company’s reports that are available from the United States Securities and Exchange Commission. The Company assumes no obligation to update the information in this release.

#####

-more-

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands, Except per Share Data)

	Three Months Ended					Year Ended
	December 31,					December 31,
	2007		2006			2007			2006
Net sales	$	247,815	$	270,405		$	1,071,441		$	1,056,246
Cost of products sold		211,924		233,056			912,337			908,095
Gross profit		35,891		37,349			159,104			148,151
Selling, general and administrative expenses		24,142		23,925			98,679			90,296
Restructuring and impairment items		0		(809	)		0			(809	)
Gain on sale of assets held for sale		0		0			(2,299	)		0
Operating income		11,749		14,233			62,724			58,664
Interest expense		7,265		8,097			31,551			31,267
Income before income taxes		4,484		6,136			31,173			27,397
Income taxes		568		(4,649	)		9,976			3,218
Net income	$	3,916	$	10,785		$	21,197		$	24,179
Amounts per common share:
Basic	$	0.35	$	0.98		$	1.91		$	2.20
Diluted	$	0.34	$	0.94		$	1.82		$	2.11
Common shares used in the computation:
Basic		11,184		11,029			11,106			10,997
Diluted		11,679		11,491			11,651			11,461
Other financial data:
EBITDA, as defined	$	16,871	$	20,701		$	83,049		$	80,057

Note A—EBITDA, as defined, reflects earnings before interest, income taxes, and excludes depreciation, amortization, certain non-cash charges and corporate-level expenses as defined in the Company’s Revolving Credit Agreement. EBITDA is not a measure of performance under generally accepted accounting principles (“GAAP”) and should not be considered in isolation or as a substitute for net income, cash flows from operating, investing and financing activities and other income or cash flow statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. The Company presents EBITDA because management believes that EBITDA is useful to investors as an indication of the Company’s satisfaction of its Debt Service Ratio covenant in its revolving credit agreement and because EBITDA is a measure used under the Company’s revolving credit facility to determine whether the Company may incur additional debt under such facility. EBITDA as defined herein may not be comparable to other similarly titled measures of other companies. The following table reconciles net income to EBITDA, as defined:

	Three Months Ended					Year Ended
	December 31,					December 31,
	2007		2006			2007			2006
Net income	$	3,916	$	10,785		$	21,197		$	24,179
Add back:
Income taxes		568		(4,649	)		9,976			3,218
Interest expense		7,265		8,097			31,551			31,267
Depreciation and amortization		4,687		5,940			20,469			20,037
Restructuring and other unusual items		0		(9	)		0			(9	)
Gain on the sale of assets held for sale		0		0			(2,299	)		0
Miscellaneous		435		537			2,155			1,365
EBITDA, as defined	$	16,871	$	20,701		$	83,049		$	80,057

CONSOLIDATED CONDENSED BALANCE SHEETS
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

	December 31,		December 31,
	2007		2006
	(Unaudited)		(Audited)
	(In Thousands)
ASSETS
Current Assets
Cash and cash equivalents	$	14,512	$	21,637
Accounts receivable, net		172,357		181,893
Inventories		215,409		223,936
Deferred tax assets		21,897		34,142
Unbilled contract revenue		24,817		16,886
Other current assets		15,232		7,332
Total Current Assets		464,224		485,826
Property, Plant and Equipment		266,222		248,065
Less accumulated depreciation		160,665		146,980
Total Property Plant and Equipment		105,557		101,085
Other Assets
Goodwill		100,997		98,180
Net assets held for sale		3,330		6,568
Other		95,081		92,092
Total Other Assets		199,408		196,840
Total Assets	$	769,189	$	783,751
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Trade accounts payable	$	121,875	$	132,864
Accrued expenses		67,007		78,264
Current portion of long-term liabilities		4,403		5,873
Total Current Liabilities		193,285		217,001
Long-Term Liabilities, less current portion
8.375% Senior Subordinated Notes due 2014		210,000		210,000
Revolving credit maturing on December 31, 2010		145,400		156,700
Other long-term debt		2,287		4,790
Deferred tax liability		22,722		32,089
Other postretirement benefits and other long-term liabilities		24,017		24,434
Total Long-Term Liabilities		404,426		428,013
Shareholders’ Equity		171,478		138,737
Total Liabilities and Shareholders’ Equity	$	769,189	$	783,751

BUSINESS SEGMENT INFORMATION (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2007			2006			2007			2006
NET SALES
Supply Technologies	$	127,461		$	148,598		$	531,417		$	598,228
Aluminum Products		37,280			33,750			169,118			154,639
Manufactured Products		83,074			88,057			370,906			303,379
	$	247,815		$	270,405		$	1,071,441		$	1,056,246
INCOME BEFORE INCOME TAXES
Supply Technologies	$	6,755		$	8,934		$	27,175		$	38,383
Aluminum Products		(265	)		(397	)		3,020			3,921
Manufactured Products		10,506			9,049			45,798			28,991
		16,996			17,586			75,993			71,295
Corporate and Other Costs		(5,247	)		(3,353	)		(13,269	)		(12,631	)
Interest Expense		(7,265	)		(8,097	)		(31,551	)		(31,267	)
	$	4,484		$	6,136		$	31,173		$	27,397