CORRECTED - CORRECTED-UPDATE 1-Baldor Electric sees attrition reducing headc

(Corrects headline and the text throughout to show that the company plans to reduce headcount through attrition, not job cuts)

Dec 15 (Reuters) - Baldor Electric Co BEZ.N said in a regulatory filing that it plans to reduce its headcount by 900 jobs through attrition by June 2009 and forecast a tough environment next year.

The company, which makes electric motors, power transmission products, drives and generators, said it sees a single-digit decline in recent incoming orders.

Baldor said it expects to reduce headcount by 475 by December and by another 425 by June. As of Jan. 31, the Fort Smith, Arkansas-based company had about 8,083 employees.

Estimated savings from the headcount reduction would be about $30 million in 2009, the company said in a filing with the U.S. Securities and Exchange Commission.

Baldor, which sees mid-single digit sales growth in the current quarter, however, said material costs "could be a tailwind after the first quarter" in 2009. Baldor sells its products to distributors and original equipment manufacturers. It competes with companies like Emerson Electric Co (EMR.N) and Rockwell Automation (ROK.N).

Shares of the company were down 45 cents at $15.04 in morning trade on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Himani Sarkar)