Timken Cuts Forecast, Halves Dividend

As for those special items, Timken took $6.2 million in charges related to impairments and severance payments, while a year ago, the company had $5.6 million in gains on the sale of assets.

Timken expects to save $140 million a year not only by making the announced staff reductions, which will amount to 25% of its workforce, but also by cutting pay for many of those who remain at the company. Charges associated with those moves could result in a $70 million charge on the year, Timken added.

Not surprisingly, the sharpest declines at the company occurred in its "mobile industries segment," which makes parts for the automotive industry. First-quarter sales in the division plummeted 41% to $373 million.

In afternoon trading, Timken shares were off by more than 13% at 14.64.