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.