The Timken Company (TKR) 8-K Results of Operations and Financial Condition

Exhibit 99.1

SEGMENT RESULTS

BUSINESS SEGMENTS

(Thousands of U.S. dollars) (Unaudited)	1Q 2007			2Q 2007			3Q 2007			4Q 2007			YEAR 2007			YEAR 2006
Mobile Industries Segment
Net sales to external customers	$	609,455		$	632,497		$	586,736		$	597,972		$	2,426,660		$	2,412,087
Adjusted earnings before interest and taxes (EBIT) (1)		20,888			24,616			10,401			(5,186	)		50,719			31,404
Adjusted EBIT Margin (1)		3.4	%		3.9	%		1.8	%		-0.9	%		2.1	%		1.3	%
Process Industries Segment
Net sales to external customers	$	248,867		$	265,747		$	260,062		$	306,232		$	1,080,908		$	973,748
Intersegment sales		366			485			600			358			1,809			1,997
Total net sales	$	249,233		$	266,232		$	260,662		$	306,590		$	1,082,717		$	975,745
Adjusted earnings before interest and taxes (EBIT) (1)		27,064			38,359			33,414			43,955			142,792			124,948
Adjusted EBIT Margin (1)		10.9	%		14.4	%		12.8	%		14.3	%		13.2	%		12.8	%
Aerospace and Defense Segment
Net sales to external customers	$	73,714		$	74,370		$	70,429		$	94,848		$	313,361		$	259,695
Adjusted earnings before interest and taxes (EBIT) (1)		6,509			4,183			425			10,612			21,729			18,085
Adjusted EBIT Margin (1)		8.8	%		5.6	%		0.6	%		11.2	%		6.9	%		7.0	%
Total Bearings and Power Transmission Group
Net sales to external customers	$	932,036		$	972,614		$	917,227		$	999,052		$	3,820,929		$	3,645,530
Intersegment sales		366			485			600			358			1,809			1,997
Total net sales	$	932,402		$	973,099		$	917,827		$	999,410		$	3,822,738		$	3,647,527
Adjusted earnings before interest and taxes (EBIT) (1)		54,461			67,158			44,240			49,381			215,240			174,437
Adjusted EBIT Margin (1)		5.8	%		6.9	%		4.8	%		4.9	%		5.6	%		4.8	%
Steel Group
Net sales to external customers	$	352,477		$	376,617		$	344,012		$	341,985		$	1,415,091		$	1,327,835
Intersegment sales		37,815			34,152			37,100			37,448			146,515			144,424
Total net sales	$	390,292		$	410,769		$	381,112		$	379,433		$	1,561,606		$	1,472,259
Adjusted earnings before interest and taxes (EBIT) (1)		65,526			65,888			52,278			47,475			231,167			226,772
Adjusted EBIT Margin (1)		16.8	%		16.0	%		13.7	%		12.5	%		14.8	%		15.4	%
Unallocated corporate expense	$	(16,228	)	$	(17,526	)	$	(14,370	)	$	(17,726	)	$	(65,850	)	$	(66,880	)
Intergroup eliminations (expense) income (2)	$	(1,124	)	$	(367	)	$	(279	)	$	1,297		$	(473	)	$	3,582
Consolidated
Net sales to external customers	$	1,284,513		$	1,349,231		$	1,261,239		$	1,341,037		$	5,236,020		$	4,973,365
Adjusted earnings before interest and taxes (EBIT) (1)	$	102,635		$	115,153		$	81,869		$	80,427		$	380,084		$	337,911
Adjusted EBIT Margin (1)		8.0	%		8.5	%		6.5	%		6.0	%		7.3	%		6.8	%

(1) EBIT is defined as operating income plus other income (expense). EBIT Margin is EBIT as a percentage of net sales. EBIT and EBIT margin on a segment basis exclude certain special items set forth above. EBIT and EBIT Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting EBIT and EBIT Margin best reflect the performance of the company’s business segments and EBIT disclosures are responsive to investors.

(2) Intergroup eliminations represent intergroup profit or loss between the Steel Group and the Bearings and Power Transmission Group.

SEGMENT RESULTS

BUSINESS SEGMENTS

Reconciliation of GAAP Income from Continuing Operations before Income Taxes
This reconciliation is provided as additional relevant information about the company’s performance. Management believes Consolidated adjusted earnings before interest and taxes (EBIT) and Total Bearings and Power Transmission Group adjusted EBIT are more representative of the company’s performance and therefore useful to investors. Management also believes that it is appropriate to compare GAAP Income from Continuing Operations before Income Taxes to Consolidated adjusted EBIT in light of special items related to impairment and restructuring and manufacturing rationalization/reorganization costs, Continued Dumping and Subsidy Offset Act (CDSOA) receipts, and gain/loss on the sale of non-strategic assets.

(Thousands of U.S. dollars) (Unaudited)	1Q 2007			2Q 2007			3Q 2007			4Q 2007			YEAR 2007			YEAR 2006
Income from Continuing Operations before Income Taxes	$	67,986		$	89,717		$	56,309		$	68,245		$	282,257		$	254,234
Pre-tax reconciling items:
Interest expense		9,644			10,080			10,698			12,262			42,684			49,387
Interest (income)		(1,955	)		(1,200	)		(2,381	)		(1,509	)		(7,045	)		(4,605	)
Manufacturing rationalization/reorganization expenses - cost of products sold		11,843			10,721			5,382			3,330			31,276			18,476
Manufacturing rationalization/reorganization expenses — SG&A		1,330			648			852			415			3,245			5,917
Loss (gain) on divestiture		354			(38	)		152			60			528			64,271
Impairment and restructuring		13,776			7,254			11,840			7,508			40,378			44,881
Special items — other (income) expense		(343	)		(2,029	)		(983	)		(9,884	)		(13,239	)		(94,650	)
Consolidated adjusted earnings before interest and taxes (EBIT)	$	102,635		$	115,153		$	81,869		$	80,427		$	380,084		$	337,911
Steel Group adjusted earnings before interest and taxes (EBIT)		(65,526	)		(65,888	)		(52,278	)		(47,475	)		(231,167	)		(226,772	)
Unallocated corporate expense		16,228			17,526			14,370			17,726			65,850			66,880
Intergroup eliminations expense / income		1,124			367			279			(1,297	)		473			(3,582	)
Total Bearings and Power Transmission Group adjusted earnings before interest and taxes (EBIT)	$	54,461		$	67,158		$	44,240		$	49,381		$	215,240		$	174,437