Timken expects sales growth of 5% to 8% in 2012, with:

Mobile Industries sales relatively flat for the year, reflecting improved off highway and rail demand, offset by reduced light vehicle business

Process Industries sales up by 8% to 13%, projecting increased demand from global industrial distribution, continued growth in Asia, the full year impact from acquisitions and new product sales

Aerospace and Defense sales up by 10% to 15%, driven by increased demand in the defense and commercial aerospace sectors

Steel sales up by 5% to 10%, driven by demand in the energy and mobile on highway sectors, as well as pricing

Timken projects 2012 annual earnings in the range of USD 4.90 to USD 5.20 per diluted share, reflecting improved operating performance

The company expects to generate approximately USD 515 million in cash from operations, which includes discretionary pension and VEBA trust contributions of approximately USD 150 million, net of tax. Free cash flow is expected to be USD 90 million after making capital expenditures of about USD 345 million and paying roughly USD 80 million in dividends. Excluding the discretionary pension and VEBA trust contributions, the company expects free cash flow of approximately USD 240 million in 2012.