UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest
event reported): February 10, 2009
NN,
INC.
(Exact name of registrant as specified in its
charter)
| Delaware | 0-23486 | 62-1096725 |
|
(State
or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
|
2000 Waters Edge Drive
Johnson City, Tennessee
|
37604 | |
|
(Address of
principal executive offices)
|
(Zip
Code)
|
Registrant's telephone number, including area
code: (423)743-9151
Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the obligation of the
registrant under any of the following provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17CFT
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17CFT 240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFT
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13c-4(c) under the Exchange Act (17CFT
240.13c-4(c))
ITEM 2.02 RESULTS OF OPERATIONS
AND FINANCIAL CONDITIONS
NN, Inc.
issued a press release dated February 10, 2009 announcing that after a
preliminary review of its fourth quarter financial results that it now expects
revenues and earnings for the fourth quarter 2008 to be significantly lower than
its prior guidance. The Company will report its fourth quarter 2008
and full year financial results for the period ended December 31, 2008 before
the opening of the market on Tuesday, March 10, 2009. A copy of the
press release dated February 10, 2009 is attached hereto as Exhibit 99.1 and
incorporated herein by reference.
Exhibit:
Exhibit
Number Description of Exhibit
99.1
Press Release of NN, Inc. dated February 10, 2009.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
| NN, INC. | |||
|
Date: February
10, 2009
|
By:
|
/s/ William C. Kelly, Jr. | |
| Name : William C. Kelly, Jr. | |||
| Title : Vice President and Chief Administrative Officer | |||
EX.
99.1
F I N A
N C I A L
RELATIONS BOARD
RE: NN,
Inc.
2000
Waters Edge Drive
&
#160;
Johnson
City, TN 37604
FOR
FURTHER INFORMATION:
AT THE
COMPANY AT FINANCIAL RELATIONS
BOARD
Will
Kelly Marilynn
Meek
Vice
President and Chief Administrative
Officer
(General
info)
(423)
743-9151 212-827-3773
0;
FOR
IMMEDIATE RELEASE
February
10, 2009
NN,
INC. ANTICIPATES LOWER 2008 FOURTH QUARTER REVENUES AND EARNINGS
|
·
|
Continued
Deterioration in Global Automotive and Industrial End Markets Cited as
Cause
|
|
·
|
Positive
Cash Flow Generated During Fourth Quarter Despite Lower Revenues and
Earnings
|
Johnson City, Tenn., February 10,
2009 – NN, Inc. (Nasdaq: NNBR) today announced that after a preliminary
review of its fourth quarter financial results that it now expects revenues and
earnings for the fourth quarter 2008 to be significantly lower than its prior
guidance. Previously, on November 4, 2008, the Company reported both record
revenues and earnings for the nine month period ended September 30,
2008. However, at that time, due to the global economic downturn and
anticipated reductions in customer demand in automotive and industrial end
markets, the Company forecasted a revenue reduction of $20 million, or 20% for
the fourth quarter of 2008 as compared to its beginning of the year
guidance. Given this anticipated reduction in volume, the Company
stated that it expected earnings for the fourth quarter to be approximately
breakeven. Additionally, the Company expected 2008 full year earnings
per diluted share would be in the range of $0.83 to $0.85. This
guidance excluded the positive impact of the recording of $0.19 per diluted
share in after-tax gains on the sale of surplus land in the Netherlands and a
one-time adjustment to taxes of $0.07 per diluted share that related to a change
in Italian tax law.
Due to
the continued deterioration in global economies and automotive and industrial
end markets, 2008 fourth quarter revenues are now expected to be down
approximately 30% from beginning of the year guidance and 29% from the same
period in 2007. In addition, the Company now expects to record a loss
of approximately $2.5 million for the quarter. Full year
earnings are expected to be approximately $10.5 to $11.0 million, or $0.66 to
$0.68 per diluted share. This guidance does not include the positive
impact of the gain on sale of surplus land in The Netherlands or the one-time
adjustment to taxes as described above. Furthermore, the guidance
does not include the negative impact of the recording of restructuring costs
associated with the closing of its Kilkenny Ireland and Hamilton Ohio plants or
the recording of significant goodwill impairments associated with decreased
levels of business. As a result of the plant closings and the lower
levels of business, we anticipate taking one-time impairment and restructuring
charges in the fourth quarter of 2008.
Mr. Roderick Baty, Chairman and Chief Executive
Officer commented, “Since our third quarter earnings release, the global
business environment has deteriorated significantly. In response to
this situation, on November 26th of last year we announced several steps to
enhance our liquidity position and cash flow including the reduction of capital
expenditures, the elimination of discretionary spending and the temporary
suspension of our regular quarterly dividend. These measures allowed us to
remain cash flow positive for the fourth quarter and to pay down approximately
$13.5 million in debt for the quarter and approximately $14.9 million in debt
for the year.”
Mr. Baty
continued, “Since that time, we have continued to take actions to further reduce
spending and to conserve cash. Additionally, we announced the rationalization of
European production capacity by the closing of our Kilkenny Ireland
manufacturing facility. This action was necessary to adjust our
global manufacturing capacity to current and long term market requirements.
Further, on January 12, 2009 we announced the closing of our manufacturing
facility in Hamilton, Ohio. As painful as this has been, these actions are
necessary to best align our manufacturing costs with reduced work
schedules.”
Mr. Baty
concluded, “After we recorded record breaking revenues and earnings for the
first nine months of 2008, the fourth quarter proved to be very challenging for
us and our industry. We believe these conditions and a prolonged
period of global economic uncertainty will continue into
2009. As a result of this forecast, the Board of Directors, the
executive officers and salaried employees throughout the organization have taken
reductions in salaries and fees ranging from 10% to 20%. Unfortunately, our
actions have also included a more than 25% reduction of our global
employment.”
The
Company will report its fourth quarter 2008 and full year financial results for
the period ended December 31, 2008 before the opening of the market on Tuesday,
March 10, 2009. Management will hold a conference call at 11:00 a.m.
that day to review the Company’s results.
NN, Inc.
manufacturers 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 13 manufacturing plants in the United States, Western Europe, Eastern
Europe and China. NN, Inc. had sales of US $421 million in
2007.
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, the successful implementation of the
global growth plan including development of new products and consummation of
potential acquisitions and other risk factors and cautionary statements listed
from time to time in the Company’s periodic reports filed with the Securities
and Exchange Commission, including, but not limited to, the Company’s Annual
Report on 10-K for the fiscal year ended December 31, 2007.
###