Timken eliminates 700 jobs because of automotive outlook

From the Timkin web site

The Timken Company today announced it is taking additional actions to improve the performance of its business in the face of worsening conditions in the North American automotive industry. Declines in North American automotive production are expected to negatively impact the company’s overall third- quarter and full-year 2006 results, which continue to benefit from the strength of global industrial markets.

‘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.’

In another article from Industrial Distribution, Timken is quoted as saying

“The widening decline in North American auto industry production has had a significant impact on our performance,” said James Griffith, Timken’s president and CEO. “This structural auto industry shift reinforces our resolve to diversify our corporate portfolio and customer mix. 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.”

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