CANTON, OH — The Timken Co. today announced it is taking additional actions to improve the performance of its business in the face of worsening conditions in the North American automotive industry. Declines in North American automotive production are expected to negatively impact the company’s overall third quarter and full year 2006 results, which continue to benefit from the strength of global industrial markets, according to the company.
"The widening decline in North American auto industry production has had a significant impact on our performance," said James 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 percent 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."
Timken is revising its earnings estimate for the third quarter, excluding special items, to an estimated 50 cents to 55 cents 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 70 cents to 75 cents per share for the third quarter and $3 to $3.15 per share for the full year, excluding special items. Earnings per share, excluding special items, in 2005 were 58 cents in the third quarter and $2.53 for the full year.
For more information about Timken, go to: http://www.timken.com