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.  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.  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. More than half of  its specialized steel  products cannot  be competitively  replicated elsewhere  in North America. 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.  5 February 17, 2012 James W. Griffith President and Chief Executive Officer Ward J.Timken, Jr.  Chairman  DELivEriNG PErFOrMANCE 21,000 TEAM MEMBErS STrONG 21% iNCrEASE iN  SALES iN ASiA