NN Inc. (Erwin, Tennessee) reported record sales and profits for the company's
third quarter 2000, with net earnings up 26% on a 45% sales increase. NN manufactures
balls and rolling elements for bearings and a plastics business, Industrial
Molding Corporation. NN also has a 30% minority interest in Jiangsu General Ball
& Roller, a Chinese joint venture.
3Q2000 sales were $37.08 million, up 45% from 3Q1999 $25.60 million. Net income
rose 26% from 3Q1999's $1.9 million to $2.4 million. Domestic ball and roller
operation sales were up 9.2% in 3Q2000, to $15.4 million. NN Euroball ApS worked as
part of NN for two months of the quarter, contributing $13.0 million.
[ read the previous article on completing NN Euroball ApS joint venture ]
For FY2000, NN said it expects total sales to reach $133 million. FY1999 sales
had been $85.3 million. NN Euroball ApS, a joint venture operated by NN, should
account for 45% of total sales, the U.S. ball and roller operations 35%, and 20%
from Industrial Molding Corporation.
Gross profits for 3Q2000 were 30% of net sales, up from 3Q2000 29%, while SG&A expenses
remained stable at 8.7% of net sales.
Finally, NN recently established a joint venture company in Guadalajara, Mexico to
manufacture plastic gears and components for office automation equipment and
industrial applications. This venture, NN-Arte, was established to supply the Mexican
facilities of U.S. manufacturers. NN-Arte is expected to ship its first products in the
first quarter of 2001.
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