Timken 1Q Profit Plunges, Plans Job Cuts

CANTON, Ohio (AP) — Bearing maker Timken Co. said Monday its first-quarter profit plunged due to weak demand in most of its markets and the impact of lower surcharges and currency changes.

Timken also said job cuts are expected to exceed 7,000, or more than 25 percent of its work force since the start of 2008, and it doubled targeted cuts in selling and administrative costs. And it said it's reducing performance-based incentive plans.

The Canton, Ohio, company slashed its outlook for the year and cut its quarterly dividend in half to 9 cents per share, as well.

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

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

Adjusted earnings that excluded special items such as impairment, restructuring and other charges and credits were $7.1 million, or 7 cents per share, compared with $78.9 million, or 82 cents per share in the year-ago period.