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): July 25,
2007
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
|
37604
|
|
|
Johnson
City, Tennessee
|
(Zip
Code)
|
|
|
(Address
of principal executive offices)
|
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 (17 CFT 230.425)
o
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFT
240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFT 240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFT
240.13e-4(c))
ITEM
2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS
Furnished
as Exhibit 99.1 is NN Inc.'s press release dated July 25, 2007 regarding
the announcement of the conference call on August 2, 2007 and the Company's
revisions to its previously announced 2007 full year
guidance.
ITEM
9.01 FINANCIAL STATEMENTS AND
EXHIBITS
The
following exhibit is furnished pursuant to Item 2.02, is not considered "filed"
under the Securities Exchange Act of 1934, as amended, and shall not be
incorporated by reference into any of the previous of future filings of NN,
Inc,
Inc. under the Securities Act of 1933, as amended, or the Exchange
Act.
Exhibit:
Exhibit
Number Description of
Exhibit
99.1
Press Release of NN, Inc. dated July 25, 2007.
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:
July
25, 2007
|
By:
|
/s/ William C. Kelly, Jr. | |
| Name: William C. Kelly, Jr. | |||
| Title: Vice President and Chief Administrative Officer | |||
news
FINANCIAL
RELATIONS BOARD
Re: NN,
Inc.
2000
Waters Edge Drive
Johnson
City, TN 37604
FOR
FURTHER INFORMATION:
AT
THE
COMPANY:
AT
FINANCIAL RELATIONS BOARD
Will
Kelly
Marilynn
Meek Susan
Garland
Vice
President, Chief Administrative
Officer
(General
info) (Analyst
info)
(423)
743-9151
212-827-3773 212-827-3775
FOR
IMMEDIATE RELEASE
July
25,
2007
NN,
INC. TO REPORT SECOND QUARTER 2007 RESULTS AND HOLD CONFERENCE CALL ON AUGUST
2,
2007
Adjusts
2007 Full Year EPS Guidance, To Take Restructuring and Other One Time Charges
in
Second and Third Quarters
Johnson
City, Tenn., July 25, 2007 – NN, Inc. (NASDAQ: NNBR) today announced that it
will release second quarter 2007 financial results for the period ended June
30,
2007 before the opening of the market on August 2, 2007.
Management
will hold a conference call at 11:00 a.m. ET that day to review the Company’s
results. The call can be accessed via the internet live or as a
replay at www.fulldisclosure.com. For those who are unavailable to
listen to the live broadcast, a replay will be available shortly after the
call
for 90 days.
The
Company also announced that it is revising its previously announced 2007 full
year guidance of $0.98 to $1.04 per diluted share and now expects to report
earnings of $0.70 to $0.74 per diluted share, before restructuring and other
one
time charges, for the 2007 full year. The reduction in guidance of
approximately $0.28 to $0.30 per diluted share is due mainly to two factors:
sales weakness in the Precision Metals Components Division, which accounts
for
approximately $0.19 per diluted share of the reduction and lower than
anticipated profits from its manufacturing facility in China due to the slower
than anticipated rationalization of the Company’s global
production. This accounts for approximately remaining $0.10 per
diluted share of the reduction.
Roderick
R. Baty, Chairman and Chief Executive Officer, commented, "Principally as a
result of negative economic factors in two major end markets in our Precision
Metal Components Division, HVAC and diesel engine, sales for the full year
are
now forecasted to be $12.0 million less than originally planned for 2007. The
HVAC segment has been impacted dramatically by two factors; customer inventory
build in advance of the compliance date of a new energy regulation (“13 SEER”)
and the continuing slowdown of new home construction. Similarly, the 2007 diesel
engine highway emissions legislation that took effect January 1, 2007, prompted
a 2006 pre-buy as fleet buyers sought to avoid the expensive technology
improvements mandated by new government regulation. Demand for products used
in
vehicles such as Class 8 trucks built in 2007 has been far lower than predicted
at the beginning of the year. Despite the current unprofitable level of business
in our newest Division, none of our supply contracts have been permanently
affected. We anticipate a return to normal business levels in 2008 and achieving
the profitability objectives we set at the time of the acquisition of
Whirlaway.”
Mr.
Baty
continued, “With the exception of our continuing profitability problems in our
China facility, our Metal Bearing Component and Rubber and Plastics Component
Divisions are performing at business plan levels in terms of both revenues
and
profitability. Our cylindrical and tapered roller products have been strong
for
the first half of the year, and precision ball demand has been above our initial
expectations. However, the shift of existing and new business to our
China facility has been painfully slow and revenue in the facility continues
to
fall below break even volume and expectations set at the beginning of the year.
We will continue to work diligently during the last half of 2007 on customer
approvals and integration of new business in order to achieve profitable levels
of production and sales in the Chinese facility moving forward.”
Mr.
James
Dorton, Vice President and Chief Financial Officer commented, “In addition to
our revision to full year guidance, we are taking steps to appropriately adjust
our cost structure moving forward. We anticipate restructuring our European
operations of the Metal Bearing Components Division which will result in our
recording restructuring and other one time charges in the range of $14 million
to $16 million ($13 to $15 million after-tax or $0.77 to $0.88 per diluted
share), consisting of approximately $0.9 million for cash items and the
remainder in adjustments to goodwill and other tangible and intangible asset
values. The majority of these charges will be taken in the second
quarter with the remainder taken in the 2007 third quarter. Further
details of the restructuring and other one time charges will be released on
August 2, 2007, when the Company reports its financial results for the second
quarter of 2007.”
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 14 manufacturing plants in the United States, Western Europe, Eastern
Europe and China. NN, Inc. had sales of US $330 million in
2006.
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, 2006.