Timken Co. said it lost $64.5 million, or 67 cents per share, during the three months ended June 30 as the economic recession and inventory reductions in the markets Timken serves took a toll on the company’s business.

That compared with a profit of $88.9 million, or 92 cents per share, for the second quarter of 2008.

Timken’s steel business includes a precision steel components plant in Eaton that makes machined steel parts for transmissions produced at Ford Motor Co.’s factory in the Cincinnati suburb of Sharonville.

Sales for the latest quarter fell by 46 percent to $828.9 million, down from $1.536 billion in the same period last year, Timken reported on Wednesday, July 29.

Timken also said it agreed to sell the assets of its needle roller bearings business to a Japanese company, JTEKT Corp., for $330 million, subject to regulatory approval. That business employs about 3,400 people and serves the automotive original-equipment market.

The Canton-based manufacturer’s products include steel, ball bearings and power transmission products for automotive markets.

The second-quarter earnings included onetime costs of severance benefits for a work force reduction and expenses of consolidating Timken’s Canton bearings operations. Without those expenses, the quarterly loss would have been $20.6 million, or 21 cents per share.

Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.