News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

Greater Akron Chamber

Metro RTA


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Economy and Business


"Activist" investor wants to split the company
No thank you, says Timken management in prepared statement 
by WKSU's TIM RUDELL


Reporter
Tim Rudell
 
Groundbreaking for the $225-million expansion of Timken's steel making capacity at its Faircrest plant near Canton
Courtesy of TPR
Download (WKSU Only)
In The Region:

Break up the more than 100-year-old Timken Company:  that’s what some significant investors in the Canton-based bearing and steel maker are calling for.  WKSU’s Tim Rudell reports they say the move would make the stock of current shareholders more valuable.  

Click to listen

Other options:
Windows Media / MP3 Download (2:01)


(Click image for larger view.)

Relational Investment is an “activist” investor:  the San Diego firm pushes companies it has a stake in to improve share value. It holds close to 6 % of Timken’s stock and has a proposal for the company’s next annual meeting: “Sell the steel division.” 

A third of Timken’s roughly $5-billion yearly revenue comes from steel, which it began producing in 1916 in Canton. It’s actually been headquartered there and Canton has been the home of the Timken family since 1901.  

Eli Lustgarten is a nationally published analyst with Longbow Research. “Relational Investors are known for being creative and suggesting intuitive changes.  But the idea of Timken splitting up the company into a bearing & transmission and steel business is actually not new and has been talked about for several years.”

And, Lustgarten says, because Timken’s precision-steel supplies both its own and other high-end manufacturing, spinning-off steel might not do what Relational thinks it would.  “Timken is not just a bearing company and a steel company.  It’s a motion solution company.  And its steel business is a specialty steel business.  So it’s nice that you get activists suggesting how to improve the stock price.  But, in this case, we think this is more of a short-term event, and not necessarily in the best interest of Timken shareholders.” 

Splitting-up one of northeast Ohio’s major international corporations would be huge news in the region; but Lustgartner says…“Odds are, because this is not a new concept that hasn’t been looked at, it will be just a recommendation.  So, I suspect not much will happen.  It’s not a business easily separated, nor makes a lot of sense to be separated.

In February of this year Timken announced plans to invest $225-million in its Faircrest steel mill in Canton so it can produce more specialized steel pipe and precision equipment for the shale drilling boom in Ohio.  The company is also building its new 42 million dollar headquarters near the Akron-Canton airport. 

Related WKSU Stories

Activist investors seek to split Timken
Wednesday, November 28, 2012

Northeast Ohio businesses making record profits
Wednesday, April 25, 2012

Analyst says Timken expansion a good choice
Wednesday, August 31, 2011

Commitment to Canton is long term
Monday, April 23, 2012

Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook




Stories with Recent Comments

Brunswick will turn tornado sirens back on after bad weather
Put the sirens back after the storms, in the mean time just sit and wait for another tornado . That's Brunswick for you lived here 44 years and it has always be...

Oberlin council may rescind its gun ban, but is considering alternatives to keep it in effect
Seems that the only scared, paranoid people are the anti-gun people, really.

Massive pipeline planned to pump Ohio shale products to Texas
This needs stopped. Ohioans pay the price, putting up with pollution, leaks, explosions, and the top one percent profit from exporting fracked product to China.

National Weather Service confirms three tornado touchdowns yesterday
I was driving back from a party and was caught in the middle of a large thunderstorm. The hail and lightning were a whole light closer than usual, is something ...

Another Indians season opens with Chief Wahoo under scrutiny
The picture you have for Robert rocha is not him. He has long hair. No idea who that guy is in that picture

Portman predicts McDonald's confirmation, but says it won't be easy
I sent the following note to Senator Blumenthal after reading commentary from yesterday's hearing: Senator, You certainly have the right to ask Mr. McDonald que...

Seven minutes changed everything, but what changed Ashford Thompson?
He shot the guy four times in the head. I have never been that drunk or mad, and I have been through it. Shoot a guy once is bad, maybe a mistake, shoot a guy f...

First cricket farm in the U.S. opens in Youngstown
I am interested in cricket flour to replace soy flour in a low carbohydrate diet. As soon as you have cricket flour available for the average person, please le...

New process starts digesting sludge in Wooster
Awesome! When do our sewage rates decrease accordingly?

Copyright © 2014 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University