Timken 1Q Profit Plunges, Plans Job Cuts

Analysts surveyed by Thomson Reuters expected a loss of 2 cents per share on revenue of $1.08 billion. Analysts typically do not include one-time charges in their estimates.

Special items in the recent quarter were $6.2 million compared with $5.6 million in income in the same period last year.

The company reported a gain on a sale of assets in the first quarter of 2008.

"It's now clear that the impact of the recession on the demand for our products will be deeper and longer lasting than we anticipated," said James W. Griffith, president and Chief Executive.

The company said it has doubled its targeted cuts in selling and administrative costs to about $80 million a year by cutting professional staff, overhead costs and discretionary spending.

In addition, compensation costs are expected to be down about $60 million this year from reductions in performance-based incentive plans.

The company said it expects to record special charges of about $70 million primarily related to work force cuts.