The Timken Company (Canton, Ohio) has announced third quarter 2001 financial results will show a loss of approximately USD $20 million, after $24 million in charges.

The company is dramatically speeding up the restructuring and cost-cutting efforts now in place. Another 300 jobs will be eliminated, on top of the 1,500 announced earlier this year.

W.R. "Tim" Timken Jr., Chairman and CEO, said, "The U.S. manufacturing sector has been in a recession for an entire year, with factory output declining for the past 14 months. The September 11 attack has created more pressure on the economy, and this will become even more apparent in the fourth quarter. During the third quarter, our sales fell to their lowest point since 1995. The overall U.S. economy has been driven into a full-fledged recession, and every industry that uses our products - automotive, industrial, aerospace, rail and others - is feeling the impact. In addition, a slowdown of the global economy is occurring, further reducing demand."

He went on to say, "In the midst of this environment, we are moving ahead rapidly with our previously announced restructuring actions. They include reducing our workforce by 1,800 jobs, refocusing manufacturing plants and speeding up the closing of our Columbus, Ohio and Duston, England bearing plants by several months."

In April, Timken originally said the Rail Bearing Plant in Columbus would continue operating for 6 to 12 months. It will be closed in two weeks. The Duston, England plant was scheduled to continue operating for up to 20 months as production was shifted elsewhere. It will now be shuttered by mid-2002.

There was no positive outlook offered for current quarter results, the company saying sales volume is experiencing a slide that is expected to continue through early 2002 before rebounding in the second half of 2002.

Timken reported results by segment:

North American automotive markets were softer than in Europe. Net sales were down 7% from 2000, to $176.5 million. The division lost $7.9 million in 3Q2001, up from a $2.1 million loss in 3Q2000.

North American demand was weaker than elsewhere, while rail was flat and showed very little activity. Aerospace and super precision are up from 2000. Overall sales fell 5% from 2000 to $214.1 million in 3Q2001. The division earned $8.6 million in the quarter, down from $14.9 million in 3Q2000.

Other than aerospace and oil-producing country sales, demand was weaker in all segments. Steel's profit margin benefited from lower raw material, energy and transportation costs in the quarter. 3Q2001 sales were $222 million, down from $268.4 million in 2000. Net was $1.3 million, down from $8.5 million in 3Q2000.