NN Inc. sales fall 6.1%
NN Inc. reported net sales for the first quarter decreased 6.1% to $104.5 million, compared to $111.3 million for the same period of 2011.
The decrease was due primarily to lower demand for the company's products in European automotive end markets. Price increases and positive raw material pass through of approximately $1.8 million were offset by the negative impact of foreign currency exchange of approximately $1.7 million.
Net income for the first quarter of $5.9 million, or 35 cents per diluted share, compares to $5.5 million, or 33 cents per diluted share, for the same period last year. The negative impact of decreased volumes associated with European automotive sales was more than offset by better financial performance from the Precision Metal Components Segment. Net income for this segment for the first quarter of 2012 was $1.6 million as compared to a net loss of $2.2 million for the same period in 2011.
"Expected weak demand in Europe due to economic conditions prevailing in European automotive end markets negatively impacted what was otherwise a very strong quarter. Accordingly, we will continue to monitor revenue and demand trends and adjust the costs in our European operations as needed," said Roderick R. Baty, chairman and chief executive officer.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
