The Timken Company, Canton, OH, announced it would be cutting 700 jobs, or 5% of its Automotive Group employment. The manufacturer blamed the step on 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 CEO. "This structural auto industry shift reinforces our resolve to diversify our corporate portfolio and customer mix. ... 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."