Timken (TKR) - Get Report became the latest auto supplier to slash earnings guidance. The company also set plans to cut 700 jobs, or 5% of automotive group employment.

The Canton, Ohio, company said it expects to make 50 to 55 cents a share for the third quarter, excluding special items, down from its previous forecast of 70 to 75 cents. For the year, Timken expects to make $2.60 to $2.75 a share, down from $3 to $3.15.

"The widening decline in North American auto industry production has had a significant impact on our performance," said James W. 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."