Timken completes sale of needle bearings business

Timken Co. has completed the sale of its needle roller bearings business to JTEKT Corp., an auto parts maker based in Japan.

The sale, which was announced in July, will net $330 million for Timken. The proceeds will provide additional liquidity and bolster Timken’s financial position in a year it expected to generate strong cash from operations, according to a press release issued Thursday afternoon.

Selling the needle roller bearings business is in line with Timken’s effort as it changes its business portfolio to pursue new growth in attractive industrial sectors, James W. Griffith, president and chief executive officer, said in a statement.

Timken acquired the needle roller bearing business when it bought Torrington in 2003. The unit’s products are used by automotives and industrial customers.

Sales for the needle roller bearings business through the first nine months of 2009 reached $289 million, but the operation had a loss of $59 million. The sale will cut Timken’s full years sales, but should have a positive effect on earnings, the company said.

The sale was announced after the New York Stock Exchange closed. Timken shares closed down 70 cents at $23.71.