Timken Warns More Job Cuts Are Coming

Bearings and specialty steels maker said Monday it will cut about 3,000 more jobs by the end of this year as the company sees its struggles in a global recession continuing.

CANTON, Ohio (AP) — Bearings and specialty steels maker Timken Co. now sees its struggles in a global recession lasting through all of this year, and the company said Monday it will cut about 3,000 more jobs by the end of this year.

Timken's shares fell $2.12, or 12.6 percent, to end Monday at $14.73.

Timken said it expects to end this year with 7,000 fewer employees than it had at the start of 2008, equivalent to a 25 percent reduction in the company's work force.

James Griffith, Timken president and chief executive officer, said Monday during a conference call with analysts that the company is from 50-to-60 percent complete with the job cuts, with at least 7,000 as the goal.

Timken had net income of $870,000, or a penny per share, in the first quarter, down from $84.5 million, or 88 cents per share, in the year-ago quarter.

Revenue of $960.4 million was down a third from $1.43 billion in the same quarter in 2008.

Excluding special items, net income was $7.1 million or 7 cents per share for the first quarter of 2009, compared with $78.9 million or 82 cents per share in the prior-year period.

Analysts in a Thomson Reuters survey had expected a loss of 2 cents per share. Such estimates generally exclude special items.

Also Monday, Timken lowered its full-year outlook to a range centered on the break-even point, ranging from a profit of 15 cents per share to a loss of 15 cents per share. Its steel group sales are expected to decline approximately 55 to 65 percent for the year due to lower surcharges and demand.

A Thomson Reuters survey of analysts looked for a 2009 profit of 78 cents per share.

More in Labor