NN Inc. (USA) reported second quarter 2002 sales were up 3.9% over 2001, to $49.2 million from $47.3 million. Net income for the same period was $2.4 million, from $2.2 million (excluding special items) in 2001.

The net income reflects improved gross margins, now 26.5% of net sales, versus 25.4% in second quarter 2001.

NN is a key manufacturer of bearing balls, rollers, retainers and seals, with operations worldwide.

CFO David Dyckman said, "we are both pleased with and encouraged by our second-quarter performance as our results exceeded our forecasts ... These increases were offset by the improving, yet still soft, economic environment."

Mr Dyckman went on to comment, "Volume levels at the domestic ball and roller division were approximately 4% below prior year levels, while Euroball revenues remained relatively flat, despite the favorable movement of currency exchange rates."

The company's Accounts Receivable - reflecting customers' ability and/or willingness to pay - grew by almost $7 million in the first half, to $31.7 million. NN itself followed suit, extending payables by just over $4 million, to $19.9 million in the same period.

After now posting sales of $47.2 million in the first quarter and $49.1 million in the second quarter, NN President Rock Baty predicted a, "modest recovery in the domestic economy and a level European economy." He went on to say, "We expect revenues for the third and fourth quarter of 2002 to be approximately $45 million and $47 million, respectively."

If those projections hold, it would mean sales are expected to fall 8% from second quarter to third quarter before recovering to $47 million in the fourth quarter.