NN, Inc. today announced several steps to enhance its liquidity and cash flow including the reduction of capital expenditures, elimination of discretionary spending and the temporary suspension of its regular quarterly dividend.
Mr. Roderick R. Baty, Chairman and Chief Executive Officer commented, “As we previously announced on November 4, 2008, we generated record revenues and earnings for the first nine months of 2008. We did, however, state that we anticipated fourth quarter revenues to be down approximately 20% from our beginning of the year forecasts. We anticipate that revenues at this level will result in the recording of approximately breakeven earnings for the fourth quarter. Our cash flow remains strong, our balance sheet is sound and we have a committed credit facility with approximately $24 million in availability. However, given the current global economic uncertainties impacting our business as well as the uncertainties surrounding the credit markets today we believe we should take prudent steps to preserve our liquidity position. This will help insure that we maintain comfortably sufficient resources to protect the strength of our balance sheet and the financial flexibility to manage through these difficult times. In light of the current economic environment, we will continue to evaluate the Company’s dividend, capital spending and discretionary spending policies on a quarterly basis.”
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 $421 million in 2007.
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