Industry News
Timken to cut 700 automotive jobs
2nd October 2006
Timken Co., the Ohio-based bearings and alloy steel products producer said on 29 September that it will cut 700 jobs, and reduced its earnings outlook because of the weakening US market.
Timken is revising its earnings estimate for the third quarter, excluding special items, to an estimated $0.50 to $0.55 per share. For the year, the company now anticipates estimated earnings per share of $2.60 to $2.75, excluding special items. The company had previously provided estimated earnings of $0.70 to $0.75 per share for the third quarter and $3.00 to $3.15 per share for the full year, excluding special items.
"The widening decline in North American auto industry production has had a significant impact on our performance," said James W. Griffith, Timken's president and chief executive officer. "This structural auto industry shift reinforces our resolve to diversify our corporate portfolio and customer mix. In addition to our previously announced restructuring, we are taking new steps to offset the impact of the further decline in sales, including a workforce reduction of approximately 700 positions, or about 5% of our Automotive Group employment. Moreover, we continue to advance our strategy to expand in global industrial markets, which is contributing to the strong overall performance of the company in 2006."
Last year, the company announced plans to cut 500 jobs from its automotive group.
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