Richard Holder, President and Chief Executive Officer, commented, The third quarter presented a series of
challenges in the broader economy that impacted our sales during the quarter. Despite these headwinds we began to see the impact of the NN Operating System as we were able to appropriately manage our business in a rapidly changing environment and
deliver strong operating performance.
Business Group Results
Metal Bearing Components
Net sales for the group
decreased $9.0 million to $60.5 million during the third quarter of 2015, compared to $69.6 million for third quarter 2014. Negative currency impacts of $6.7 million as well as volume and price/mix reductions of $2.3 million accounted for the
decline. Income from operations for the third quarter was $6.6 million, compared to $7.6 million in the third quarter of 2014.
Changes in demand in
Asia as well as the continued effects of negative currency translation weighed on our MBC business during the quarter as sales declined $9.0 million, said Holder. However, the business was still able to hold operating margins on a year
over year basis as we continue to drive results through the operating system.
Autocam Precision Components
Net sales for the third quarter of 2015 were $83.2 million, compared to $46.6 million in the third quarter of 2014, an increase of $36.6 million. Acquisitions
accounted for $39.7 million of the increase. Income from operations for the quarter increased $5.4 million to $10.9 million, compared to $5.5 million in the third quarter of 2014.
Holder commented, The Autocam Precision Components Group continued to perform well despite the conditions in Asia and Brazil. APCs focus is on
CAFE technologies that have adoption rates and growth trends not tied to normal end market cyclicality. In accordance with our continued execution of our Autocam synergy plan were announcing the closure of one of our APC facilities early next
Plastic and Rubber Components
for the third quarter increased $1.6 million to $11.0 million, compared to $9.4 million for the same period in 2014. Income from operations for the quarter was $0.6 million, compared to $0.2 million in 2014.
Precision Engineered Products (PEP) Acquisition Update
Holder commented, As announced during the third quarter we closed the PEP acquisition in October. Year to date PEPs sales and margins continue to
be in line with our expectations. Starting with the fourth quarter we will be reporting PEP as a segment within our portfolio. Additionally, the PEP Group will include our existing Plastic and Rubber Components Group as part of our continued focus
on properly aligning all of our businesses to address the end markets we serve. PEP is an important part of our strategic plan and we again welcome the team to our family.