Yes, it's a kind of guillotine for forging. Depending on how the die look like that you put in it, you can use it to form the steel in different ways. Mostly it's used to create symmetrical "dents".
This is what the first "tool" look like..
http://img21.**********.com/loc795/th_49582_IMGP2600_122_795lo.JPG
http://img101.**********.com/loc917/th_49587_IMGP2601_122_917lo.JPG
This is what the first "tool" look like..
http://img21.**********.com/loc795/th_49582_IMGP2600_122_795lo.JPG
http://img101.**********.com/loc917/th_49587_IMGP2601_122_917lo.JPG