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Before we begin, I'd like to remind you that during our conversation today, you may hear forward-looking statements related to future financial results, plans and business operations. Actual results may differ materially from those projected or implied due to a variety of factors. These factors are described in greater detail on today's press release and in our reports filed with the SEC, which are available on our website at www.timken.com.Reconciliations between GAAP and non-GAAP financial information are included as part of the press release. This call is copyrighted by the Timken Company. Any use, recording or transmission of any portion without the expressed written consent of the company is prohibited. With that, I'll turn the call over to Jim. James W. Griffith Thanks, Steve, and good morning. By now you've seen that The Timken Company had another excellent quarter. In fact, today's earnings reports just 9 months into the year, we surpassed our prior annual earnings record. Just as importantly, we continue to see strong revenue growth with sales year-to-date up 31% over 2010. This performance demonstrates the new reality for Timken. We've shifted the company to focus on more attractive industrial markets on a global basis. These include energy, mining and agriculture, as well as the regional markets in Latin America and Asia, all of which are growing faster than the economy as a whole. We've structurally improved our ability to serve customers in those markets with better business processes, a broader product range and more cost-effective manufacturing. This combination continues to drive strong revenue growth and even stronger profit growth for The Timken Company. The only exception to our positive third quarter story is our Aerospace and Defense business, which continues to be challenged. While later cycle than our other segments, we have not seen the improvement on the Defense side we were expecting. We've taken actions to address some execution issues within the business and we took a $5 million reserve during the quarter for our quality concern. We expect to see improved performance in this segment going forward.
Aerospace is not the only area where we look forward to stronger performance in 2012. Strong demand from the oil and gas sector is leading to an improved mix and better pricing in our Steel business. Our expanding product line and growing exposure to emerging markets will increase demand for products for both our Process and Mobile Industries businesses. And as demonstrated by our recent acquisitions, we are demonstrating our ability to expand our product and service offering well beyond historic bounds.Our success in growing the company led to a number of strategic moves in the past quarter. We invested almost $300 million in 2 acquisitions, Philly Gear last quarter and Drives this quarter. This complements our ongoing organic diversification program, which is responsible for much more growth in global markets. We opened early negotiations with the United Steelworkers to pave the way for a $225 million expansion of our Faircrest Steel Plant. This would involve building a continuous caster that will give us an additional 25% of high-quality alloy steel capacity at that plant. This highly differentiated production would support our growth in the energy markets, including our export program. We launched 2 joint investments with local universities to expand our technical competencies with capital effective public-private partnerships. Our strategy is working, creating more value for customers and more earnings for our shareholders. As you can see, we continue to advance many opportunities to expand on that success. To reiterate points I made in the second quarter call about the global economy, we remain confident about the long-term strength of the industrial markets we serve, focused in key areas such as energy, mining and infrastructure. Growth overall in Asia remain strong led by China and India, with new momentum in the ASEAN region. This is reinforced by growth in Latin America and in Africa. That growth is driving focused demand on specific industries around the world and we're serving that demand as a more effective, more global company. This approach sustains good Timken jobs in the Americas, in Europe and in Asia. Read the rest of this transcript for free on seekingalpha.com