ABC Bearings Ltd. (India; BSE: ABCB.BO) has reported financial results for the quarter ended June 30, 2000.

Sales were down sharply, to Rs 360 million (USD $9.1 million) from Rs 481 million ($10.5 million) in 2006, and nearly back to the Rs 364 million ($8 million) level recorded for the same quarter back in 2005.

Net profit also fell substantially, to Rs 31 million ($790,000) from 2006's Rs 53.8 million ($1.2 million), even falling below 2005's net of Rs 35.0 million ($767,000 in 2005 dollars; $892,000 in 2007 dollars).

The company's share price has suffered along with its financials. From Rs 145 per share before the quarterly results announcement, ABC's shares fell the next day to Rs 138 and continued until bottoming at Rs 85. Shares have since recovered to hover around Rs 100.

A year ago, the company waxed positive about its prospects, including the ability to pass on raw material surcharges and benefit from productivity enhancements.

2006 article: ABC reports first quarter financials
The company made no announcement, and it was not immediately clear what was immediately behind this quarter's drop in sales and financial results.

ABC's primary markets are bearings for commercial vehicles (65% of sales ) and tractors (35% of sales), 80% OEM and 20% aftermarket.

Founded in 1960 as a joint venture with Steyr of Austria, ABC initially had only a single ball bearing plant in Lonavla. Tapered roller and cylindrical roller bearings were added later. Today, ABC is India's largest producer of tapered roller and cylindrical roller bearings. Manufacturing facilities are in Gujarat and Maharahtra, with a combined capacity of more than 9 million bearings per year.

ABC is on track to spend more than Rs 300 million to expand production capacity by more than 40%.

2006 article: ABC Bearings plans to double production
Ball bearings had been in the product line for more than 40 years. But by 2001, continued losses in the highly competitive and increasingly commoditized ball bearing line convinced ABC to shift its focus to roller bearings. The Lonavla plant, dedicated to ball bearing production, was closed in 2001.

Exports have never been a major focus of ABC's operations, as it remained capacity constrained selling 98% of its production to Indian manufacturers and distributors. However, with the additional capacity in place, ABC said it plans to tackle export markets with the help of NSK. The first markets it will try to work into are Southeast Asia and North America.