Timken split

Although Timken Co. directors have settled the issue of spinning off the steel operations as a separate business, it will be several months before details of the deal are resolved.

Directors decided on Thursday that it would be in the best interest of shareholders to break Timken into two independent

companies.

The new Timken Co. will be a bearings and power transmission business with annual revenue projected at $3.4 billion. The steel business — still not officially named — will make special bar quality steel and should have annual revenue of $1.7 billion.

Both companies will maintain corporate headquarters in Stark County. Plans also call for Timken family members to be involved with company leadership.

“This really is an exciting day,” Ward J. “Tim” Timken Jr. told stock analysts Friday during a telephone conference to discuss the deal. “In my mind it really represents the next step in the transformation of the company.”

Timken now is chairman of Timken Co., but he’s been pegged as the new chairman and chief executive officer of the steel company once it is up and running.


source: http://www.indeonline.com/communities/stark/x574266759/Timken-split-Decision-made-plenty-of-details-to-be-ironed-out