content_image/202668.jpg content_image/202672.jpg content_image/202673.jpg
## 21% iNCrEASE iN SALES iN ASiA 

At the same time, we continued to invest in new product developments and expanded operations across our businesses. During the year, we introduced scores of new and customized products, including specialized steel products and a wider selection of sizes for energy and industrial customers; extensions of our popular new line of spherical bearings; UltraWind Seals for wind turbines; and our innovative ADAPT bearings that increase ease of maintenance in metal caster operations. 

Capital expenditures in 2011 included $95 million in improvements at our Canton, Ohio-based steel plants for new finishing and forging technologies. Bearing operations in the U.S. and Europe also benefited from numerous smaller investments designed to improve productivity and streamline customer service and logistics. 

Our business in Asia likewise continued to grow, with sales up 21 percent, establishing a new record of nearly $570 million. We invested there as well, allocating more than $50 million in capital expenditures to support that expansion. We also added numerous sales and customer-service locations across China and the ASEAN region, including new footholds in indonesia, Malaysia, Thailand and vietnam. 

## DELivEriNG PErFOrMANCE 

Across our organization, 21,000 team members in 30 countries consistently deliver on our steadfast promise: to make the world more productive by improving the efficiency and reliability of the machinery that keeps industry in motion. Every day, our products assist in the delivery of food, water, energy and safe transport to people around the world. We are proud to be part of the industrial engine that drives economic progress in developing countries and mature markets worldwide. 

## 21,000 TEAM MEMBErS STrONG 

<img src='content_image/202668.jpg'>

More than half of its specialized steel products cannot be competitively replicated elsewhere in North America. 

Thanks to the hard work of our global team,Timken now performs at a higher level and stands ready to withstand the changing economic winds. We deeply appreciate the trust and investment of Timken customers, distributors and shareholders everywhere, and remain committed to delivering exceptional performance at every turn. 

<img src='content_image/202672.jpg'>

February 17, 2012 

<img src='content_image/202673.jpg'>

