Business
NN, Inc. Reports Financial Results For Fourth Quarter and Full Year 2022
Fourth quarter net sales increased 6.9% over the prior year; Provides Outlook for 2023 CHARLOTTE, N.C., March 09, 2023 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ:
About this update from Nn, Inc.
[{"type":"text","content":"Fourth quarter net sales increased 6.9% over the prior year; Provides Outlook for 2023\nCHARLOTTE, N.C., March 09, 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 fourth quarter and full year ended December 31, 2022. Warren Veltman, President and Chief Executive Officer, said, “Our fourth-quarter results were adversely impacted by non-material inflationary cost increases, ongoing supply chain interruptions, especially in China, and product launch inefficiencies in certain North America facilities. We have taken action to address these issues through significant price increases for non-material inflation effective January 1, 2023, corrective action plans to address operating performance issues, and substantial progress on our facility consolidation initiative that will significantly improve our profitability and free cash flow beginning in 2023. Additionally, we were able to achieve our free cash flow outlook for the fourth quarter, and announced an amendment to our credit agreement that will provide additional flexibility for us to navigate what remains a challenging and uncertain operating environment.” Fourth Quarter GAAP Results Net sales were $118.0 million, an increase of 6.9% from the fourth quarter of 2021, primarily due to increased pricing and improved demand associated with electrical components, partially offset by unfavorable foreign exchange effects. Loss from operations was $11.0 million compared to loss from operations of $3.8 million in the fourth quarter of 2021. The increase in loss from operations was primarily driven by overall lower volume, cost increases due to inflationary pressures, and unfavorable 2022 overhead absorption when compared to 2021. These cost increases were partially offset by lower incentive compensation costs.Loss from operations for the Power Solutions segment was $0.8 million compared to $0.1 million for the same period in 2021. Loss from operations for Mobile Solutions was $5.4 million compared to income of $0.7 million for the same period in 2021. Net loss was $12.0 million compared to net income of $0.5 million for the same period in 2021. The increase in net loss was driven by the increased loss from operations as well as and larger favora...