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<SEC-DOCUMENT>0000950152-09-005573.txt : 20090908
<SEC-HEADER>0000950152-09-005573.hdr.sgml : 20090907
<ACCEPTANCE-DATETIME>20090526155316
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950152-09-005573
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20090526

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TIMKEN CO
		CENTRAL INDEX KEY:			0000098362
		STANDARD INDUSTRIAL CLASSIFICATION:	BALL & ROLLER BEARINGS [3562]
		IRS NUMBER:				340577130
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1835 DUEBER AVE SW
		CITY:			CANTON
		STATE:			OH
		ZIP:			44706-2798
		BUSINESS PHONE:		3304713078

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TIMKEN ROLLER BEARING CO
		DATE OF NAME CHANGE:	19710304
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>CORRESPONDENCE</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P><DIV style="position: relative; float: left; width: 30%">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="l36606al3660601.gif" alt="(TIMKEN LOGO)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><Font style="font-family: Helvetica,Arial,sans-serif"><B>James W. Griffith</B><BR>
President &#038; Chief Executive<BR> Officer</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 460pt"><Font style="font-family: Helvetica,Arial,sans-serif"><B>The Timken Company</B><BR>
Mail Code: GNE-17<BR>
1835 Dueber Avenue, S.W.<BR>
P.O. Box 6928<BR>
Canton, OH 44706-0928 U.S.A.
</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><Font style="font-family: Helvetica,Arial,sans-serif">Telephone: (330)&nbsp;471-6399<BR>
Facsimile: (330)&nbsp;471-4041</FONT>

</DIV>

</DIV>

<DIV style="position: relative; float: left; margin-left: 1%; margin-right: 1%; width: 1%; height: 71%; border-left: 1px solid #000000">

</DIV>

<DIV style="position: relative; float: left; width: 65%">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">May&nbsp;26, 2009

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Terence O&#146;Brien<BR>
Accounting Branch Chief<BR>
Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
One Station Place, N.E., Stop 7010<BR>
Washington, D.C. 20549-7010

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Re:</TD>
    <TD>&nbsp;</TD>
    <TD>The Timken Company<br>
Form&nbsp;10-K for the Fiscal Year ended December&nbsp;31, 2008<br>
Filed February&nbsp;26, 2009<br>
Form&nbsp;10-Q for the Fiscal Quarter ended March&nbsp;31, 2009<br>
Filed May&nbsp;7, 2009<br>
File No.&nbsp;1-01169</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Mr.&nbsp;O&#146;Brien:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This letter is in response to your correspondence of May&nbsp;12, 2009, regarding your review of the
filings referenced above for The Timken Company (the &#147;Company&#148;) and our response on May&nbsp;5, 2009 to
your previous correspondence. For your convenience, your comments are repeated below in boldfaced
italics, followed by the Company&#146;s response.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B><I>Form&nbsp;10-Q for the Fiscal Quarter Ended March&nbsp;31, 2009</I></B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B><I>Goodwill, page 33</I></B></U>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B><I>1.</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>In your letter dated April&nbsp;9, 2009, you state you will expand your discussion of critical
accounting policies and estimates to provide a description of your valuation methods with
disclosure of the material assumptions, including the revenue growth rates and operating profit
margin, as well as a sensitivity analysis related to these assumptions. In your May 5 letter, you
state you do not believe this disclosure is required by the applicable accounting standards and you
no longer intend to provide it. We have reviewed the disclosure in your </I></B><B><I>Form 10-Q</I></B><B><I> for the period
ending March&nbsp;31, 2009. We appreciate your efforts to find ways to enhance your goodwill impairment disclosures and understand the concerns you have noted regarding competitive
disadvantages. However, the disclosure of the discount rate and market multiples is of
limited use to an investor without an understanding of the material assumptions underlying
your income approach and their sensitivity, as well as an understanding of how you weigh
or consider these two methods. Given the materiality of goodwill and the $49&nbsp;million
goodwill impairment loss recorded in 2008, the recent changes in operating performance and</I></B></TD>
</TR>

</TABLE>
</DIV>

</DIV>
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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><Font style="font-family: Helvetica,Arial,sans-serif">Page 2<BR>
May&nbsp;26, 2009</FONT>

</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 475pt"><Font style="font-family: Helvetica,Arial,sans-serif"><B>The Timken Company</B>
</FONT></DIV>

</DIV>
<DIV style="position: relative; float: left; margin-left: 1%; margin-right: 1%; width: 1%; height: 57%; border-left: 1px solid #000000">

</DIV>
<DIV style="position: relative; float: left; width: 65%">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>decline in market capitalization, and the fact these estimates and assumptions are
based on matters that are highly uncertain, please tell us how you have considered the
need for disclosure to address the following items:</I></B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>the extent to which, and how you used or considered the results of your two valuation
methods,</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>the need to provide quantitative as well as qualitative disclosure when quantitative
information is reasonably available and will provide material information to investors,
as discussed in FR 72,</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>the need to analyze critical accounting estimates and assumptions for their specific
sensitivity to change, based on other outcomes that are reasonably likely to occur and
would have a material effect, as discussed in FR 72.</I></B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>You may wish to refer to Section&nbsp;V of FR-72, &#147;Commission Guidance Regarding Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations&#148; for guidance
(available on our website at
<u>http://www.sec.gov/rules/interp/33-8350.htm)</u>. Provide us with an
example of the disclosure you intend to provide in future filings.</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company expects to expand its disclosure of critical accounting policies relating to
goodwill in Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations &#151; Critical Accounting Policies and Estimates to provide the following disclosure
in future filings regarding its reporting units, valuation methods, and underlying assumptions
used by the Company during its annual goodwill impairment analysis performed during the fourth
quarter of 2008:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B>Goodwill:</B></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company tests goodwill and indefinite-lived intangible assets for impairment
at least annually. The Company performs its annual impairment test during the
fourth quarter after the annual forecasting process is completed. Furthermore,
goodwill is reviewed for impairment whenever events or changes in circumstances
indicate that the carrying value may not be recoverable. Each interim period,
management of the Company assesses whether or not an indicator of impairment is
present that would necessitate a goodwill impairment
analysis be performed in an interim period other than during the fourth quarter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The goodwill impairment analysis is a two step process. Step one compares the
carrying amount of the reporting unit to its estimated fair value. To the extent
that the carrying value of the reporting unit exceeds its estimated fair value,
step two is performed, where the reporting unit&#146;s carrying value of goodwill is
compared to the implied fair value of goodwill. To the extent that the carrying
value of goodwill exceeds the implied fair value of goodwill, impairment exists
and must be recognized.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company reviews goodwill for impairment at the reporting unit level. The
Company&#146;s reporting units are the same as its reportable segments: Mobile
Industries, Process Industries, Aerospace and Defense and Steel. The Company
prepares its goodwill impairment
</DIV>


</DIV>
<BR clear="all"><BR>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><Font style="font-family: Helvetica,Arial,sans-serif">Page 3<BR>
May&nbsp;26, 2009</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 462pt"><Font style="font-family: Helvetica,Arial,sans-serif"><B>The Timken Company</B></FONT>
</DIV>

</DIV>

<DIV style="position: relative; float: left; margin-left: 1%; margin-right: 1%; width: 1%; height: 57%; border-left: 1px solid #000000">

</DIV>
<DIV style="position: relative; float: left; width: 65%">





<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">analysis by comparing the estimated fair value of each reporting unit, using an
income approach (a discounted cash flow model) as well as a market approach, with
its carrying value. The income approach and the market approach are equally
weighted in arriving at fair value, which the Company has applied consistently.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The discounted cash flow model requires several assumptions including future sales
growth, EBIT (earnings before interest and taxes) margins and capital
expenditures. The Company&#146;s four reporting units each provide their forecast of
results for the next three years. These forecasts are the basis for the
information used in the discounted cash flow model. The discounted cash flow
model also requires the use of a discount rate and a terminal revenue growth rate
(the revenue growth rate for the period beyond the three years forecasted by the
reporting units), as well as projections of future operating margins (for the
period beyond the forecasted three years). During the fourth quarter of 2008, the
Company used a discount rate for each of its four reporting units ranging from 11%
to 12% and a terminal revenue growth rate ranging from 2% to 3%. The difference
in the discount rates is based on the underlying markets and risks associated with
each of the Company&#146;s reporting units.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The market approach requires several assumptions including sales multiples and
EBITDA (earnings before interest, taxes, depreciation and amortization) multiples
for comparable companies that operate in the same markets as the Company&#146;s
reporting units. During the fourth quarter of 2008, the Company used sales
multiples for its four
reporting units ranging from 0.4 to 1.0 and EBITDA multiples ranging from 3.8 to
8.0. The difference in the sales multiples and the EBITDA multiples is due to the
underlying markets associated with each of the Company&#146;s reporting units.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As a result of the goodwill impairment analysis performed during the fourth
quarter of 2008, the Company recognized a goodwill impairment loss of $48.8
million for the Mobile Industries segment in its financial statements for the year
ended December&nbsp;31, 2008. The fair value of each of the Company&#146;s other reporting
units exceeded its carrying value. As of December&nbsp;31, 2008, the Company had
$230.0&nbsp;million of goodwill on its Consolidated Balance Sheet, of which $167.6
million was attributable to the Aerospace and Defense segment. See Note 8 &#151;
Goodwill and Other Intangible Assets in the Form 10-K for the year ended December 31, 2008 for carrying amount of goodwill by segment.
The Aerospace and Defense segment is the only reporting unit in which the fair
value of the reporting unit did not exceed the carrying value of the reporting
unit by more than 10%. The fair value of this reporting unit was $445.9&nbsp;million
compared to a carrying value of $436.2&nbsp;million. A XXX basis point increase in the
discount rate would have resulted in the Aerospace and Defense segment failing
step one of the goodwill impairment analysis, which would have required the
completion of step two of the goodwill impairment analysis to arrive at a
potential goodwill impairment loss. A XXX basis point decrease in the projected
cash flows would have resulted in the Aerospace and
</DIV>


 </DIV>
<BR clear="all"><BR>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><Font style="font-family: Helvetica,Arial,sans-serif">Page
4<BR>
May&nbsp;26, 2009</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 462pt"><Font style="font-family: Helvetica,Arial,sans-serif"><B>The Timken Company</B></FONT>
</DIV>

</DIV>

<DIV style="position: relative; float: left; margin-left: 1%; margin-right: 1%; width: 1%; height: 57%; border-left: 1px solid #000000">

</DIV>
<DIV style="position: relative; float: left; width: 65%">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Defense segment failing step one of the goodwill impairment analysis, which would
have required the completion of step two of the goodwill impairment analysis to
arrive at a potential goodwill impairment loss.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B><I>2.</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>In your letter dated April&nbsp;9, 2009, you state you will provide the estimated fair value
and the related carrying value of any reporting unit whose carrying value does not
materially differ from its estimated fair value. In your letter dated May&nbsp;5, 2009, you
appear to have reconsidered this and suggest you will limit disclosure to the requirements
of paragraph 33 of SFAS 157. The disclosure requirements of paragraph 33 of SFAS 157
apply to reporting units with goodwill impairment since initial recognition and would not
necessarily provide useful information to investors regarding other reporting units with
carrying values not materially different from estimated fair value (i.e. reporting units
with carrying value close to fair value but no impairment to date). The impairment
testing of reporting units with limited headroom is particularly sensitive to estimates
and assumptions, and such reporting units may be susceptible to changes that could
materially impact your financial statements. Please tell us how you intend to provide
investors with information to provide greater insight
into the existence of reporting units with limited headroom and the quality and
variability of the related fair value estimate.</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company will expand its disclosures to provide greater insight into the existence of
reporting units with limited headroom and the quality and variability of the related
estimate in future filings for the period in which a goodwill impairment analysis is
required to be performed. The response to question 1 is an example of the type of
disclosure that will be made in the future.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Net Income (Loss) Attributable to Noncontrolling Interest, page 24</I></B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B><I>3.</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Please tell us and expand future disclosures to address the significant factors
influencing the amount of loss attributable to noncontrolling interests and tell us the
underlying reasons this loss exceeded net loss, resulting in net income attributable to
The Timken Company.</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the first quarter of 2009, the Company recorded a net loss attributable to
noncontrolling interest of $5.9&nbsp;million. The $5.9&nbsp;million is comprised of two components:
$0.2&nbsp;million of income from operations attributable to the noncontrolling interest and
$6.1&nbsp;million of loss related to a goodwill impairment loss attributable to the
noncontrolling interest. In the fourth quarter of 2008, the Company recorded a goodwill
impairment loss of $48.8&nbsp;million ($42.2&nbsp;million after-tax) for the Mobile Industries
segment. During the first quarter of 2009, the Company determined that $6.1&nbsp;million
(after-tax) of the impairment recorded during the fourth quarter of 2008 was attributable
to noncontrolling interests. The Company evaluated this error in accordance with the
provisions of SEC Staff Accounting Bulletin No.&nbsp;99 (SAB No.&nbsp;99), &#147;Materiality,&#148; Statement
of Financial Accounting Standards No.&nbsp;154 (SFAS No.&nbsp;154), &#147;Accounting Changes and Error
Corrections,&#148; and Accounting Principles Board Opinion No.&nbsp;28 (APB No.&nbsp;28), &#147;Interim</TD>
</TR>

</TABLE>
</DIV>


 </DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><Font style="font-family: Helvetica,Arial,sans-serif">Page
5<BR>
May&nbsp;26, 2009</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 462pt"><Font style="font-family: Helvetica,Arial,sans-serif"><B>The Timken Company</B></FONT>
</DIV>

</DIV>

<DIV style="position: relative; float: left; margin-left: 1%; margin-right: 1%; width: 1%; height: 57%; border-left: 1px solid #000000">

</DIV>
<DIV style="position: relative; float: left; width: 65%">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial Reporting.&#148; SAB No.&nbsp;99 requires a registrant to consider both quantitative and
qualitative considerations when evaluating the materiality of an error. Management of the
Company concluded that this error was not material to the 2008 full-year results or the
Mobile Industries segment 2008 full-year results. Management also concluded the error did
not have an impact in terms of meeting or exceeding analyst expectations for the Company&#146;s
results for the fourth quarter of 2008 and the first quarter of 2009, nor did it have an
impact on loan covenants. APB No.&nbsp;28, paragraph 29, requires that in determining
materiality for the purpose of reporting the correction of an error, amounts should be
related to the estimated income for the full fiscal year. Management of the Company
evaluated the impact of the error on the Company&#146;s 2008 fourth-quarter results, as well as
the
Company&#146;s 2009 first-quarter results and concluded it was not material relative to the
full-year results for 2008 and the estimated full-year results for 2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In future filings, the Company will expand disclosures to address the significant factors
influencing the amount of income (loss)&nbsp;attributable to noncontrolling interests.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Please do not hesitate to contact me if you have any questions regarding the foregoing and, of
course, if you have any additional comments. Questions or comments should be directed to me at
(330)&nbsp;471-6399, Glenn A. Eisenberg, Executive Vice President &#151; Finance and Administration
(Principal Financial Officer) at (330)&nbsp;471-4096 or J. Ted Mihaila, Senior Vice President and
Controller (Principal Accounting Officer) at (330)&nbsp;471-4198.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thank you in advance for your cooperation in these matters.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Sincerely,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ James W. Griffith
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">James W. Griffith&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">cc:</TD>
    <TD>&nbsp;</TD>
    <TD>Tracey McKoy<br>
Securities and Exchange Commission<br><br>
Glenn A. Eisenberg<br>
The Timken Company<br><br>
J. Ted Mihaila<BR>
The Timken Company<br><br>
Lawrence F. Cruise<BR>
Ernst &#038; Young</TD>
</TR>
</TABLE>
</DIV>


</DIV>
<BR clear="all"><BR>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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