Timken Co. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2011. For the quarter, net sales were $1,264.7 million compared to $1,070.7 million for the same period a year ago. Operating income was $169.6 million compared to $103.5 million for the same period a year ago. Earnings before interest and taxes (EBIT) were $166.9 million compared to $108.0 million for the same period a year ago. Income from continuing operations before income taxes was $159.5 million compared to $99.9 million for the same period a year ago. Income from continuing operations was $108.3 million compared to $86.6 million for the same period a year ago. Net income attributable to the company was $109.1 million compared to $90.3 million for the same period a year ago. Diluted earnings per share from continuing operations were $1.11 compared to $0.87 for the same period a year ago. Diluted earnings per share were $1.11 compared to $0.91 for the same period a year ago. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) was $216.5 million compared to $155.5 million for the same period a year ago. Net cash provided by operating activities was $279.1 million compared to net cash used in operating activities of $0.7 million for the same period a year ago. Capital expenditures were $99.3 million compared to $54.6 million for the same period a year ago. The increase in sales primarily reflects growth from the energy, heavy truck, mining, rail and industrial distribution sectors, as well as favorable pricing, material surcharges and acquisitions. Net debt was $47 million. The increase in sales was due to strong volume across the company's broad markets with the exception of aerospace and defense business. The increase in EBIT resulted from higher surcharges, pricing and mix, which were partially offset by higher material costs. For the full year, net sales were $5,170.2 million compared to $4,055.5 million for the same period a year ago. Operating income was $729.1 million compared to $436.2 million for the same period a year ago. Earnings before interest and taxes (EBIT) were $728.0 million compared to $440.0 million for the same period a year ago. Income from continuing operations before income taxes was $696.8 million compared to $405.5 million for the same period a year ago. Income from continuing operations was $456.6 million compared to $269.5 million for the same period a year ago. Net income attributable to the company was $454.3 million compared to $274.8 million for the same period a year ago. Diluted earnings per share from continuing operations were $4.59 compared to $2.73 for the same period a year ago. Diluted earnings per share were $4.59 compared to $2.81 for the same period a year ago. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) was $920.5 million compared to $629.7 million for the same period a year ago. Net debt at the end of the period was $46.7 million compared to cash of $363.4 million for the same period a year ago. Net cash provided by operating activities was $211.7 million compared to $312.7 million for the same period a year ago. Capital expenditures were $205.3 million compared to $115.8 million for the same period a year ago. The improvement in net earnings reflects higher volume, favorable mix, acquisitions, surcharges and pricing, which more than offset increased raw material and administrative costs. The company provided earnings guidance for the fiscal year 2012. For the fiscal year 2012, the company expects sales growth of 5% to 8%. The company projects 2012 annual earnings in the range of $4.90 to $5.20 per diluted share, reflecting improved operating performance. The company expects to generate approximately $515 million in cash from operations, which includes discretionary pension and VEBA trust contributions of approximately $150 million, net of tax. Free cash flow is expected to be $90 million after making capital expenditures of about $345 million and paying roughly $80 million in dividends. Excluding the discretionary pension and VEBA trust contributions, the company expects free cash flow of approximately $240 million in 2012. the effective tax rate to be 34%. For the fiscal year 2012, the company expects to pay roughly $80 million in dividends.