Timken Issues Letter to Shareholders
The Timken Company (NYSE: TKR) continues to urge Timken shareholders to support the Company's proven strategy of creating shareholder value, and asks them by letter to vote AGAINST Proxy Statement Item No. 6, the shareholder proposal to spin-off the Steel business.
The full text of the letter being sent to shareholders can also be found at www.TimkenDrivesValue.com:
April 25, 2013
Dear Fellow Timken Shareholder:
SUPPORT THE TIMKEN COMPANY'S PROVEN STRATEGY TO INCREASE SHAREHOLDER VALUE
VOTE AGAINST THE SHAREHOLDER PROPOSAL TO SPIN OFF THE STEEL BUSINESS
The Timken Company's Annual Meeting is rapidly approaching. We are confident that our integrated business model and ongoing transformation represent the best COURSE to create sustainable long-term shareholder value. If you have not already done so, we need your vote today to support the continued successful execution of our strategic plan.
Consider the following important facts that highlight the benefits of our integrated model -- and provide support for voting AGAINST the proposal to spin off the Steel business:
o Proven Value Creation. Over the past three and five years, including before The California State Teachers' Retirement System and Relational Investors became involved, Timken generated top quartile total shareholder returns, through the execution of our proven strategic plan. o Strong Operating Results. On April 24, we announced solid first-quarter results, including double-digit operating margins across all segments of our business. In the face of challenging market conditions, our integrated strategy continues to perform well. o Significant Upside. Our 2015 EPS target range has a mid-point of $7.00 -- a 40% increase over 2012. This target reflects the value we believe we will create by continuing to execute our integrated strategy.
The simple fact is that our integrated business model is working. The deep synergies between our Steel and Bearings & Power Transmission businesses provide us with a tremendous competitive advantage in the marketplace. This enables us to deliver value for our customers and for our shareholders.
The proposal to separate our businesses made by CalSTRS and Relational Investors is misguided and shortsighted. It ignores the value we have created and the further upside potential in continued execution of our proven strategy. Do not allow this strategy to be derailed by two investors who don't understand how our business works. Do not give up long-term value-creation for the illusory short-term gains of financial engineering. Vote AGAINST Item #6. For more information, please visit www.TimkenDrivesValue.com.
EVERY VOTE AT THE MAY 7^th ANNUAL MEETING IS IMPORTANT
IF YOU HAVE NOT ALREADY VOTED, PLEASE USE THE ENCLOSED PROXY CARD TO CAST YOUR VOTE TODAY AGAINST PROXY STATEMENT ITEM #6
Thank you for your continued support of The Timken Company.
On behalf of the Board of Directors of The Timken Company,
Joseph W. Ralston Lead Independent Director
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