TimkenSteel Corporation Debuts as a Public Company Following Spinoff
07/01/2014 - TimkenSteel Corporation (NYSE: TMST, timkensteel.com), a leader in customized alloy steel products and services, today announced the completion of its spinoff from The Timken Company.
Timken shareholders of record as of June 23, 2014 receive one share of TimkenSteel common stock (TMST) for every two shares of Timken stock (TKR). Beginning tomorrow, July 1, TMST shares will be issued and commence "regular-way" trading on the New York Stock Exchange.
"As a 100-year-old start-up, we are excited to write this next chapter of our history," said Ward J. "Tim" Timken, Jr., chairman, CEO and president. "Our long record of solving customers' toughest challenges has delivered the financial performance shareholders value. We plan to grow that value through continued focus on product innovation, core business expansion and new investments."
TimkenSteel focuses on special bar quality (SBQ) steels and seamless mechanical tubing - high-end alloy steel designed for demanding applications. The company tailors these products, as well as its value-added supply chain solutions, for each customer's need. With operations in six countries and approximately 3,000 employees, TimkenSteel has a global presence to grow along with its multi-national customer base.
"Our business model makes us unique in the industry," Timken said. "We focus on the most demanding applications because we have the knowledge to tackle those challenges and the operational excellence to deliver a tailored solution. Everyone at TimkenSteel also shares common goals around profit, cash flow, growth and communications to ensure we get off to a strong start."
At its June 19 investor day, TimkenSteel provided the following guidance:
-- 20-25% revenue increase for full-year 2014 over The Timken Company's
Steel Segment's 2013 revenue, driven by strong demand in the energy and
industrial sectors.
-- Balance sheet strength that will enable the company to grow the business
and take additional steps to generate value for shareholders.
-- Targeted dividend payout ratio of 20-30%, and an initial quarterly
dividend of $0.13 to $0.15 per share, subject to board approval.
On July 1, the board of directors and leadership team of TimkenSteel will mark the spinoff by ringing the opening bell at the New York Stock Exchange at 9:30 a.m., Eastern Time. Footage of the bell ringing will be available live on NYSE's website. The company also will be covering the event on its Twitter feed, @TimkenSteel.
Transaction Details
On September 5, 2013, The Timken Company (TKR) announced that its board of directors approved a plan to separate the steel business from Timken through a spinoff. Timken shareholders of record on June 23, 2014, receive one TimkenSteel common share for every two Timken common shares they own. Regular-way trading of TimkenSteel common shares will begin on July 1, 2014 under the ticker symbol TMST on the New York Stock Exchange.
"As a 100-year-old start-up, we are excited to write this next chapter of our history," said Ward J. "Tim" Timken, Jr., chairman, CEO and president. "Our long record of solving customers' toughest challenges has delivered the financial performance shareholders value. We plan to grow that value through continued focus on product innovation, core business expansion and new investments."
TimkenSteel focuses on special bar quality (SBQ) steels and seamless mechanical tubing - high-end alloy steel designed for demanding applications. The company tailors these products, as well as its value-added supply chain solutions, for each customer's need. With operations in six countries and approximately 3,000 employees, TimkenSteel has a global presence to grow along with its multi-national customer base.
"Our business model makes us unique in the industry," Timken said. "We focus on the most demanding applications because we have the knowledge to tackle those challenges and the operational excellence to deliver a tailored solution. Everyone at TimkenSteel also shares common goals around profit, cash flow, growth and communications to ensure we get off to a strong start."
At its June 19 investor day, TimkenSteel provided the following guidance:
-- 20-25% revenue increase for full-year 2014 over The Timken Company's
Steel Segment's 2013 revenue, driven by strong demand in the energy and
industrial sectors.
-- Balance sheet strength that will enable the company to grow the business
and take additional steps to generate value for shareholders.
-- Targeted dividend payout ratio of 20-30%, and an initial quarterly
dividend of $0.13 to $0.15 per share, subject to board approval.
On July 1, the board of directors and leadership team of TimkenSteel will mark the spinoff by ringing the opening bell at the New York Stock Exchange at 9:30 a.m., Eastern Time. Footage of the bell ringing will be available live on NYSE's website. The company also will be covering the event on its Twitter feed, @TimkenSteel.
Transaction Details
On September 5, 2013, The Timken Company (TKR) announced that its board of directors approved a plan to separate the steel business from Timken through a spinoff. Timken shareholders of record on June 23, 2014, receive one TimkenSteel common share for every two Timken common shares they own. Regular-way trading of TimkenSteel common shares will begin on July 1, 2014 under the ticker symbol TMST on the New York Stock Exchange.
About TimkenSteel Corporation
TimkenSteel (NYSE:TMST, timkensteel.com), creates tailored steel products and services for demanding applications, helping customers push the bounds of what's possible within their industries. The company reaches around the world in its customers' products and leads North America in large alloy steel bars (6"+) and seamless mechanical tubing made of its special bar quality steel, as well as supply chain and steel services. Operating from six countries, TimkenSteel posted sales of $1.4 billion in 2013.
