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Item 7.01.
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Regulation FD Disclosure
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Timken is also providing an update regarding the ongoing COVID-19 pandemic. The Company continues to adhere to mandates and other guidance from local governments and health authorities, as well as the World Health Organization and the Centers for Disease Control and Prevention. Timken’s main priority is the health of its employees and others in the communities where it does business.
The Company continues to reduce production schedules and has temporarily idled certain plants in response to customer shut-downs, changes in demand and other government-imposed restrictions on operations. The Company has also begun to implement cost reduction actions across the enterprise.
The extent and duration of the impact of COVID-19 and resulting effect on the Company’s operations remains uncertain. As a result of the evolving impact of COVID-19 on the economy, Timken is withdrawing its 2020 financial outlook provided on February 5, 2020. Further updates will be provided when the Company reports first quarter 2020 results.
Timken has ample liquidity to meet its near-term needs with over $700 million of cash and cash equivalents on the balance sheet as of April 3, 2020. This includes the recent draw of $350 million on its Senior Credit Facility described in Item 2.03.
The information in this Item 7.01 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Forward-looking Statements
Certain statements in this filing (including statements regarding the Company’s beliefs, estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the Company’s ability to respond to changes in its end markets that could affect demand for the Company’s products or services; unanticipated changes in business relationships with customers or their purchases from the Company; changes in the financial health of the Company’s customers, which may have an impact on the Company’s revenues, earnings and impairment charges; fluctuations in material and energy costs; the impact of changes to the Company’s accounting methods; political risks associated with government instability; recent world events that have increased the risk posed by international trade disputes, tariffs and sanctions; weakness in global or regional economic conditions and capital markets; the Company’s ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms; fluctuations in currency valuations; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion within expected timeframes or at all; the impact on operations of general economic conditions; fluctuations in customer demand; the impact on the Company’s pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; the introduction of new disruptive technologies; unplanned plant shutdowns; the Company’s ability to maintain appropriate relations with unions and works councils; negative impacts to the Company’s business as a result of COVID-19 or other epidemics or pandemics; and the Company’s ability to complete and achieve the benefits of announced plans, programs, initiatives, acquisitions and capital investments. Additional factors are discussed in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended Dec. 31, 2019, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.