$6.5M Timken contract

$6.5M Timken contract

CANTON — The Timken Co. has received a $6.5 million contract to supply rail bearings for freight cars built by Titagarh Wagons in India. The rail bearings are being manufactured at Timken’s production facility in Jamshedpr, India. As part of its ongoing investment in India, Timken plans to open a second Indian production facility in Chennai in 2008.

Diebold fails to sell

NORTH CANTON — Diebold, whose electronic voting technology is used in elections across the country, says efforts to sell the highly criticized business have failed and that instead it will allow the unit to operate more independently.

Diebold said it would establish a separate board of directors to lead the elections unit and could create a new management structure. The new board will include independent directors.

Diebold said it has not ruled out the possibility of later selling a portion or all of its ownership in the realigned company, said Thomas W. Swidarski, president and chief executive.

Diebold Election Systems has had steady growth in sales and profits, but has become a lightning rod for critics of the reliability of e-voting devices. Critics questioned whether Diebold software running those devices could be manipulated.

Three product recalls

The following recalls have been announced:

•About 811,000 Skil brand circular saws with various date codes, manufactured in the U.S. by Robert Bosch Tool Corp., because the saw may continue to operate when it’s in the locked position and the user releases the trigger. In addition when the safety switch is on, the product can still be used, which poses a risk. The company has received five reports of the saw staying on after the user released the trigger. No injuries have been reported. The recalled circular saws were sold nationwide. They have model numbers 5650, 5700, 5750 and 5755. Consumers should contact the company for a free repair.

•About 24,000 gold pine cone candle sets, manufactured in Hong Kong and imported by Giftco Inc., because the paint on the candles can catch on fire. The company has received one report of a candle igniting in this manner, but the damage was contained to just the candle..

•About 37,100 Classic Beautyrest electric warming throw blankets, manufactured in China and imported by International Home Fashions Inc., because the blankets can overheat if bunched, folded or tucked, posing a risk of smoldering, melting, fires or burns. The company has received 38 reports of overheating, including at least 15 reports of fires and four reports of burns.

Fannie Mae profit falls

WASHINGTON — Fannie Mae, the largest U.S. buyer and guarantor of home mortgages, reported last week that its profit dropped more than 35 percent last year on lower interest income and the cost of accounting revisions.

The government-sponsored company, which finances or guarantees one of every five home loans in the United States, said it earned $4.1 billion, or $3.65 a share in 2006, down from $6.3 billion, or $6.01 a share, in 2005 and $5 billion, or $4.94 a share, in 2004.

The decline in profit in 2006 was expected, mainly because of reductions in interest income and ballooning costs from Fannie Mae’s reworking of its accounting following a $6.3 billion scandal that came to light in September 2004.

Jobless claims increase

WASHINGTON — The number of Americans filing new claims for unemployment benefits rose last week in a possible signal that labor markets are beginning to weaken. The Labor Department reported that jobless claims totaled 322,000 last week, an increase of 6,000 from the previous week. The four-week average for claims was also up, rising by 4,750 to 312,500.

Economists have been expecting the labor market to slow under the impact of weaker economic growth over the past year. The unemployment rate edged up to 4.6 percent in July as businesses added just 92,000 workers to their payrolls, the smallest increase in five months.

Vindicator staff/wire reports