CANTON, Ohio (AP) - Timken Co., a maker of metal bearings used in items ranging from computers to freight cars, said Thursday its second-quarter profit more than doubled, driven by strong industrial markets and higher prices.
The company also said it plans to overhaul its automotive group and cut up to 500 jobs, in response to the auto industry downturn. It also projected third-quarter earnings above Wall Street's average view and lifted its full-year forecast.
Timken reported earnings of $67.3 million, or 73 cents per share, compared with $25.3 million, or 28 cents per share, in the prior-year period.
Excluding reorganization expenses and other special items, Timken reported earnings of 77 cents per share, versus 33 cents per share a year ago.
Sales rose 17 percent to $1.32 billion from $1.13 billion.
Wall Street's consensus forecast was 61 cents per share, the average of eight analysts surveyed by Thomson Financial, on revenue of $1.28 billion.
Timken forecast third-quarter earnings, excluding one-time items, between 50 cents and 55 cents per share. For the full-year, it projected earnings from $2.40 to $2.55 per share, up from its previous target of $2.05 to $2.20 per share.
Analysts' average earnings estimates are 47 cents per share for the current quarter, and $2.28 per share for the full year.
Timken said it expects to cut between 400 and 500 jobs and record restructuring costs from $80 million to $90 million for restructuring the automotive group. The overhaul will occur over the next two years and result in annual savings of roughly $40 million, it said.
The automotive group posted a loss before interest and taxes of $1.2 million during the quarter, reversing a year-earlier profit, on sales of $425.9 million.
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