JOHNSON CITY, Tenn., June 18, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced it is revising its 2015 revenue guidance from the previously provided range of $670 - $690 million dollars as a result of continued weakness in the Brazilian economy. The company now expects 2015 revenue to be between $660 - $670 million dollars.
During 2014, NN and its acquired companies sold approximately $47 million into Brazil. The company now expects 2015 revenue in Brazil to be off the planned $52 million by approximately 38% - 40% based on new estimates showing Brazil's GDP will contract 2% in 2015 along with the reduction in automotive build and sales estimates in the country.
NN's 2015 revenue in North America, Europe and Asia remain at or near the guidance levels previously provided. NN continues to reaffirm its 2018 strategic targets.
Richard Holder, President and CEO commented, "While our team did a great job in the first quarter managing our Brazilian business, the economic challenges continue to persist. Light vehicle sales in Brazil were 20% lower through May and are expected to be 30% lower in the coming months compared to the last several years, which have pushed OEM inventories higher than normal. While this economic struggle is disappointing, we remain committed to the Brazilian market and believe our competitive position in the country will provide us a significant advantage in the future. Excluding Brazil, the remainder of our businesses around the globe continue to perform in line with our expectations and we remain committed to achieving our 2018 strategic plan and targets."
NN, Inc., a diversified industrial company manufactures and supplies high precision metal bearing components, industrial plastic and rubber products and precision metal components to a variety of markets on a global basis. Headquartered in Johnson City, Tennessee, NN has 25 manufacturing plants in the United States, Western Europe, Eastern Europe, South America and China.
Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These, and similar statements, are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of NN, Inc. and its subsidiaries to differ materially from those expressed or implied by this discussion. All forward-looking information is provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "assumptions", "target", "guidance", "outlook", "plans", "projection", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "potential" or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. Factors which could materially affect actual results include, but are not limited to: general economic conditions and economic conditions in the industrial sector, inventory levels, regulatory compliance costs and the Company's ability to manage these costs, start-up costs for new operations, debt reduction, competitive influences, risks that current customers will commence or increase captive production, risks of capacity underutilization, quality issues, availability and price of raw materials, currency and other risks associated with international trade, the Company's dependence on certain major customers, and the successful implementation of the global growth plan including development of new products. Similarly, statements made herein and elsewhere regarding pending or completed acquisitions are also forward-looking statements, including statements relating to the anticipated closing date of an acquisition, the Company's ability to obtain required regulatory approvals or satisfy closing conditions, the costs of an acquisition and the Company's source(s) of financing, the future performance and prospects of an acquired business, the expected benefits of an acquisition on the Company's future business and operations and the ability of the Company to successfully integrate recently acquired businesses.
For additional information concerning such risk factors and cautionary statements, please see the section titled "Risk Factors" in the Company's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Except as required by law, we undertake no obligation to update or revise any forward-looking statements we make in our press releases, whether as a result of new information, future events or otherwise.
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SOURCE NN, Inc.
AT THE COMPANY: Robbie Atkinson, Corporate Treasurer & Investor Relations, (423) 434-8398; AT FINANCIAL RELATIONS BOARD: Marilynn Meek, (General info), 212-827-3773