JOHNSON CITY, Tenn. (AP) Shares of NN Inc. surged nearly 27 percent Monday after the manufacturer of industrial plastic, rubber and metal components posted higher earnings and said full-year results should improve as well.
The company, based in Johnson City, Tenn., had a major upswing in profitability at its Whirlaway business and solid operating performance at its components units in predicting stronger full-year profit margins and income. NN is also adding more capacity at its China operations, which has resulted in more business for the company.
Net income for the January-through-March period was $5.9 million, or 35 cents per share, up 7 percent from $5.5 million, or 33 cents per share, for the same period in 2011. Adjusted earnings were 39 cents per share, excluding one-time items.
Revenue was $104.5 million, down 6 percent from $111.3 million.CEO Roderick Baty said the Whirlaway unit and the precision metal components business delivered $1.6 million in net income, a $3.8 million rise in profitability from a year ago. He said revenue was down because of weaker demand in Europe. NN shares jumped by $2, or 26.9 percent, to $9.45 in afternoon trading.
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