NN THIRD QUARTER 2005 REPORT
Resource from: CBCC Likes:2943
Oct 19,2005
NN, INC.TO REPORT THIRD QUARTER 2005 RESULTS AND HOLD CONFERENCE CALL ON NOVEMBER 1, 2005
Johnson City, Tenn., October 18, 2005 ?NN, Inc. (NASDAQ: NNBR) today announced that it will release third quarter 2005 financial results for the period ended September 30, 2005 before the opening of the market on November 1, 2005.
Management will hold a conference call at 11:00 a.m. ET that day to review the Company抯 results. The call can be accessed via the internet live or as a replay at www.fulldisclosure.com. For those who are unavailable to listen to the live broadcast, a replay will be available shortly after the call for 90 days.
The Company also announced that it is revising its previously announced 2005 full year guidance of $0.90 to $0.94 per diluted share and now expects to report earnings of $0.77 to $0.81 per diluted share for 2005 full year. The reduction of approximately $0.13 per diluted share is attributable to three factors: lower second half sales volume and resulting inefficiencies in Europe ($0.06 per share), currency translation ($0.05 per share), and an adjustment to the U.S. tax provision and the recording of a reserve for Delphi accounts receivable ($0.02 per share).
As mentioned in the Company抯 second quarter release, overall global demand remained strong during the first half of 2005. However, demand from certain European customers has weakened in the second half of the year. Additionally, production delays at the Company抯 new manufacturing facility in Slovakia have negatively impacted planned sales volumes and resulting profitability. These lower sales volumes have adversely affected capacity utilization rates in Slovakia and also the remaining NN Europe facilities, thus lowering anticipated margins.
Currency translation associated with the U.S. Dollar-Euro exchange rates, which was also mentioned in the second quarter earnings release, is now forecasted to negatively impact sales and net income by approximately $12.0 million and $0.05 per diluted share, respectively for the 2005 full year.
Finally, two additional factors have contributed to the revised guidance, but to a lesser degree. On Saturday, October 8, 2005, Delphi Corporation filed for Chapter 11 bankruptcy protection. Due to this filing, the Company has reserved certain amounts of its accounts receivable balance with Delphi. The recording of this reserve resulted in a charge to after-tax earnings of approximately $0.01 per diluted share. The Company believes that Delphi post-bankruptcy is an acceptable credit risk and plans to continue normal shipments of its product to them. Secondly, the Company recorded a charge in the third quarter of approximately $0.01 per diluted share related to an adjustment of its corporate tax rate.
NN, Inc. manufacturers and supplies high precision bearing components consisting of balls, rollers, seals, and retainers for leading bearing manufacturers on a global basis. In addition, the company manufactures a variety of other plastic components. NN, Inc. had sales of US $304 million in 2004.
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
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