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Exhibit 99.1
The Timken Company
Segment Financial Information
(Thousands of dollars)
As Reported Adjusted
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2002 2001 2000 2002 2001 2000(1)
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AUTOMOTIVE GROUP
Net sales to external customers $840,763 $751,029 $839,838 $752,763 $642,943 $839,838
Depreciation and amortization 33,866 36,381 35,344 33,866 36,381 35,344
Impairment and restructuring charges 18,992 27,270 1,143 - - -
Receipt of U.S. Continued Dumping and
Subsidy Offset
Act (CDSOA) payment 10,829 2,501 - - - -
Earnings (loss) before interest and taxes 14,715 (39,939) 24,595 11,095 (28,795) 27,654
Capital expenditures 34,948 36,427 50,540 34,948 36,427 50,540
Assets employed at year-end 718,495 661,514 632,814 663,864 583,891 632,814
INDUSTRIAL GROUP
Net sales to external customers $883,534 $882,279 $923,477 $971,534 $990,365 $923,477
Depreciation and amortization 45,429 48,314 48,197 45,429 48,314 48,197
Impairment and restructuring charges 9,313 25,671 11,499 - - -
Receipt of CDSCDSOAypayment 39,373 27,054 - - - -
Earnings (loss) before interest and taxes 72,872 32,144 54,304 73,040 55,981 72,330
Capital expenditures 32,178 34,646 59,382 32,178 34,646 59,382
Assets employed at year-end 1,051,053 966,647 944,493 1,105,684 1,044,269 944,493
STEEL GROUP
Net sales to external customers 825,778 813,870 879,693 825,778 813,870 879,693
Intersegment sales 155,500 146,492 196,500 155,500 146,492 196,500
Depreciation and amortization 67,240 67,772 67,506 67,240 67,772 67,506
Impairment and restructuring charges 3,838 1,748 15,112 - - -
Earnings (loss) before interest and taxes 28,682 9,345 19,349 32,520 12,115 37,133
Capital expenditures 23,547 31,274 52,795 23,547 31,274 52,795
Assets employed at year-end 978,808 904,924 986,798 978,808 904,924 986,798
TOTAL
Net sales to external customers 2,550,075 2,447,178 2,643,008 2,550,075 2,447,178 2,643,008
Depreciation and amortization 146,535 152,467 151,047 146,535 152,467 151,047
Impairment and restructuring charges 32,143 54,689 27,754 - - -
Receipt of CDSCDSOAypayment 50,202 29,555 - - - -
Earnings (loss) before interest and taxes 116,269 1,550 98,248 116,655 39,301 137,117
Capital expenditures 90,673 102,347 162,717 90,673 102,347 162,717
Assets employed at year-end 2,748,356 2,533,084 2,564,105 2,748,356 2,533,084 2,564,105
INCOME BEFORE INCOME TAXES
Total EBIT for reportable segments 116,269 1,550 98,248 116,655 39,301 137,117
Impairment and restructuring charges - - - (32,143) (54,689) (27,754)
Reorganization charges - - - (18,445) (12,617) (11,115)
Receipt of CDSCDSOAypayment - - - 50,202 29,555 -
Interest expense (31,540) (33,401) (31,922) (31,540) (33,401) (31,922)
Interest income 1,676 2,109 3,479 1,676 2,109 3,479
Intersegment adjustments (887) 2,859 792 (887) 2,859 792
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Income (loss) before income taxes and
cumulative effect of change in
accounting principle 85,518 (26,883) 70,597 85,518 (26,883) 70,597
1 - It is impractical for Timken to reflect 2000 segment financial information
related to the reorganization of its Automotive and Industrial Groups, as this
structure was not in place at that time.