This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

NN Posts 3rd-qtr Profit; Forecast Weighs On Shares

JOHNSON CITY, Tenn. (AP) â¿¿ Shares of NN Inc. plunged in Tuesday trading after the manufacturer of industrial plastic, rubber and metal components posted a third-quarter profit, reversing a year-ago loss, but lowered its full-year revenue forecast.

NN said it earned $4.7 million, or 28 cents per share, for the three months that ended Sept. 30. That compared with a loss of $1 million, or 6 cents per share, a year earlier.

The recent quarter benefited from foreign currency exchange gains on intercompany loans. Excluding that gain, net income from normal operations was $3.3 million, or 20 cents per share.

Revenue rose 11 percent to $101.1 million, from $91 million last year.

NN said about $2 million of the revenue gain was due to increased sales for its precision metals segment and increased demand at the U.S. and China operations of its metal bearings segment. Those gains were offset by decreased demand at European operations of its metal bearings segment.

The company said the third quarter was the weakest of the year due to normal seasonality of its business, especially in Europe. Weak demand in the automotive industry in Europe also hurt sales.

Keybanc analyst Mark Parr said price hikes that passed along to customers the higher prices that NN was paying for raw materials accounted for most of the revenue gain, though foreign currency fluctuations contributed. Organic growth slowed, he said.

With uncertainty in global markets continuing, NN said it expects weaker demand in European industrial and automotive markets and Asian industrial markets. It revised its full-year forecast and now expects revenue of $405 million to $415 million, down from a prior projection for $435 million to $440 million but up from the company's initial forecast for $405 to $415.

NN's shares fell $2.16, or 24.4 percent, to close Tuesday at $6.68 in heavy trading. The stock has changed hands between $4.47 and $19.39 in the past 52 weeks.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs