Reuters reports that Ball-bearing maker Timken has lowered its third-quarter and full-year earnings guidance, citing a decline in North American automotive demand, continued manufacturing inefficiencies in its auto group and higher-than-expected raw materials costs.

More than 900 jobs are expected to be eliminated during the second half of the year, about 700 of them in the automotive business, Timken also said.

Reuters reported that earnings excluding special items are now expected to be between nil and 5 cents a share for the third quarter between 45 cents and 60 cents a share for the full year, also excluding special items.

That compares with the previous earnings forecast of 10 cents to 15 cents a share for the third quarter and 80 cents to 95 cents per share for the full year.

Timken also said it plans to reorganize its automotive business and Karl Kimmerling, president of the unit, has left the company. James Griffith, president and chief executive, has assumed control of the auto group during the transition.

“As the big 3 auto makers have moved to cut production levels, we have experienced steeper volume declines in our automotive group than we had anticipated,” Griffith said in a statement.

The company’s steel group also was hurt by a decline in passenger car production and higher raw material costs.