NN Inc. (Johnson City, Tennessee) has announced lowered expectations for third quarter and fourth quarter 2001 sales and earnings. NN manufactures balls, rollers, and other bearing components in its own factories and joint ventures in several locations around the world.

Chairman and CEO Rock Baty said, "The significant slowdown in manufacturing activity continues to negatively impact our bearing component business. Our third quarter has historically been our slowest quarter based upon customer plant vacations and corresponding shutdowns. This year, however, the reduction in demand and revenue has been significantly more dramatic than just seasonal adjustments."

The upcoming end to the third quarter of 2001 should show earnings in the area of USD $.04 to $.06, down from earlier estimates of $.13 to $.14 per share.

Mr. Baty went on to predict that sales for 2001 should reach $183 million, down from the previous estimate of $190 million. NN is also now projecting fourth quarter earnings to be $.05 to $.08 per share.

However, he also stated that NN is still on track to reduce its outstanding long-term debt by $12 million in 2001 and that the closing of the Walterboro factory makes the company's manufacturing more appropriately balanced.