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The Timken Company, Canton, OH, reported sales of $960.4 million for first quarter of 2009, a decrease of 33% over the same period a year ago. First-quarter profit was $0.9 million, compares with profit of $84.5 million for first quarter 2008.
It's now clear that the impact of the recession on the demand for our products will be deeper and longer lasting than we anticipated. In the short term, we are managing the company with a heightened emphasis on cash flow, said James W. Griffith, president and CEO. "At the same time, we are taking actions to structure the company for profitability, even at current levels of demand, including efforts to strengthen our portfolio while improving the competitiveness of our manufacturing base."
The company has doubled its targeted reduction in selling and administrative costs, which will include reductions in professional staff, overhead costs and discretionary expenditures. Timken will also implement further reductions in its manufacturing workforce with reductions expected to exceed 7,000 positions, or over 25% of the workforce since the beginning of 2008.
The Bearings and Power Transmission Group had first-quarter sales of $728.7 million, down 31% from the same period last year.
In the first quarter, Mobile Industries sales were $372.9 million, a decrease of 41% from the same period a year ago. The greatest declines occurred in the heavy-truck and light-vehicle sectors, which were down approximately 50%.
Process Industries had first-quarter sales of $243.2 million, down 22% from 2008. Sales into the metals, power transmission and aggregate sectors experienced the largest declines while power generation products were up from the same period a year ago.
Aerospace and Defense had first-quarter sales of $112.7 million, up 10% from first quarter 2008. The increase was driven by demand, favorable pricing and acquisitions. The company acquired EXTEX, a designer of high-quality replacement engine parts for the aerospace aftermarket, in November 2008 that accounted for approximately 30% of the sales increase.
Sales for the Steel Group, including inter-group sales, were $248.6 million, down 42% from last year. Sales to the automotive sector were down approximately 60%.