By RTT News, September 08, 2014, 10:31:00 AM EDT

(RTTNews.com) - Bearings and transmission components maker Timken Co. ( TKR ) Monday announced plans to improve performance of its aerospace business, including closing its aerospace engine overhaul business in Arizona by the end of the year.

In the third quarter, the firm expects to record a non-cash, pre-tax charge, comprising mainly goodwill and inventory impairments, of $110 to $120 million, in addition to pre-tax costs of $10 million related to the facility closures.

The company's actions include closing of its aerospace bearing facility located in Wolverhampton, U.K., subject to employee consultation process, rationalizing the capacity into existing facilities.

Timken also plans to eliminate aerospace segment's leadership positions and intends to place the operations under the direction of group president Chris Coughlin. Further, the company said it will evaluate strategic alternatives for its aerospace MRO parts business.

The firm noted that starting with fourth quarter of 2014, it will not report Aerospace financial results separately. It plans to incorporate aerospace business results mainly within the company's Mobile Industries segment.

CEO Richard Kyle said aerospace will continue to be an important market for the company and that it "fits the Timken Business Model well."

"While the segment's overall performance has been weak, we expect that the actions we've outlined will improve returns and generate growth going forward," Kyle added.

In mid-June, Timken lifted its earnings outlook for full year 2014, citing expected second-half operating performance as well as gradually improving markets. The board also authorized an additional share buyback of up to 10 million shares.

It was in September 2013, that the company's board of directors approved a plan to split the company into two stand-alone publicly traded entities by separating the company's steel business from its bearings and power transmission business through a spin off. TimkenSteel Corp., trades under the symbol TMST on the New York Stock Exchange.

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Timken To Restructure Aerospace Business - Update