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NN, Inc. Reports Financial Results for First Quarter 2023
Results impacted by continued macro challenges and new program launch inefficiencies CHARLOTTE, N.C., May 04, 2023 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ:
About this update from Nn, Inc.
[{"type":"text","content":"Results impacted by continued macro challenges and new program launch inefficiencies\nCHARLOTTE, N.C., May 04, 2023 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that manufactures high-precision components and assemblies, today reported its financial results for the first quarter ended March 31, 2023. Warren Veltman, President and Chief Executive Officer, said, “Our first quarter results were adversely impacted by reduced production volumes resulting from decreases in residential and commercial construction and the end of COVID-19 restrictions in China. Customers have also reduced inventory levels to buffer against future volume uncertainty further impacting volumes. From an operational perspective, we continued to experience product launch inefficiencies within our Mobile Solutions group. While we are disappointed with our financial results at the start of the year, we significantly improved free cash flow performance in comparison to a year ago, and our liquidity position remains solid. We remain on plan with cost improvements associated with our facility closures and have taken action to further improve our cost structure through a 10% global reduction of indirect labor that will begin to benefit our results in the second quarter.” First Quarter GAAP Results Net sales were $127.1 million, a decrease of 0.8% from the first quarter of 2022, primarily due to reduced volume and unfavorable foreign exchange impacts, partially offset by ongoing pricing actions. Loss from operations was $7.1 million compared to a loss from operations of $3.4 million in the first quarter of 2022. The increase in loss from operations was primarily driven by lower volume and operating inefficiencies, partially offset by pricing in excess of inflation. Income from operations for Power Solutions was $1.7 million compared to income from operations of $0.4 million for the same period in 2022. Loss from operations for Mobile Solutions was $3.3 million compared to income from operations of $2.0 million for the same period in 2022. Net loss was $10.2 million compared to net loss of $3.3 million for the same period in 2022. The increase in net loss can be attributed to reduced sales volume, decreased income from the China joint venture due to lower sales volume, and unfavorable overhead absorption, partially offset by pri...