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.