Timken Slashes 2009 Earnings Guidance

CANTON, Ohio (AP) — Bearing maker Timken Co. slashed its 2009 guidance Monday after reporting its first-quarter profit plummeted 99 percent, saying it expects nearly all its markets to contract this year.

Timken said it now expects an adjusted full-year loss of 15 cents per share to a profit of 15 cents per share, compared with a prior forecast of a profit of $1.30 per share to $1.60 per share.

Analysts surveyed by Thomson Reuters expect earnings of 78 cents per share.

In a conference call with investor analysts Monday, the company said customers pulled back on orders, leaving Timken with a large backlog.

Timken said it now expects revenue to be less than $4 billion this year, which implies a revenue drop of at least 30 percent from the $5.66 billion booked in 2008.

The company said it expects sales in the steel group business to fall by 55 percent to 65 percent due to lower surcharges and demand. And it expects significant declines from heavy-truck manufacturing and process industries sales.