NN, Inc. (NASDAQ: NNBR), a global diversified industrial company
that engineers and manufactures high-precision components and
assemblies, today reports a record-breaking 2023, with $62.6
million in new business wins. Ending with a strong second half,
this acceleration in new business awards is a direct result of the
company’s new transformational business strategy. NN continues to
gain traction with wins in desirable and diversified markets
through better focus, targeting and harnessing its collective
strengths.
“Part of our transformation plan is to improve
how we engage our customers and the marketplace. Our new business
wins in 2023 are validation that its working and that’s great
news,” said Harold Bevis, CEO of NN, Inc. “This opens the door for
our team to partner with customers and suppliers to create unique
and breakthrough value-added solutions. We are capitalizing on our
highly technical process capabilities, our existing footprint and
know-how. The goal is to win business, grow sales and profits.”
Bevis began as CEO in May 2023 and immediately
announced a focused transformation plan, including:
- Culture change, harnessing
strengths, and talent upgrade in certain areas
- Revamped sales and customer
programs
- Revamped operational
performance
- Revamped free cash flow
performance
NN’s $62.6 million in new business wins during
2023 included wins in three key areas:
- Electric vehicle (EV) and hybrid
vehicle applications with total wins of approximately $30
million.
- Vehicle connector components and
electrical connector shielding with total wins of approximately $15
million.
- Diesel parts for large equipment
with total wins of approximately $9 million.
Precision components supplied by NN are proving
valuable in supporting advancements in noise reduction, vibration
reduction and harshness performance (NVH) requirements by
manufacturers. Its capabilities in precision machining, precision
stamping, plating, precious metals and injection molding are
welcome in the marketplace, especially with its certifications,
such as ISO-13485, ITAR, IATF-16949, ISO-9001, NADCAP AC7108 &
AC7004. These certifications and internal know-how have allowed NN
to immediately re-enter the medical business with a focused agenda
on surgical instruments, handpieces and implants for orthopedic
applications, among others.
NN’s delivers single micron tolerance with its
precision machining capabilities in Swiss-style, screw, and rotary
transfer machines with worm milling and gear hobbing. Its micro
milling and grinding are ideal for component needs such as motor
shafts, pinion and worm gears, connectors, injector and spool valve
components and armatures.
NN’s has progressive stamping capabilities with
presses from two to 330 tons and unique knowledge in producing high
and low voltage connectors, electrical contacts and contact
assemblies, including EMI connector box shields, bus bars and
collector plates, which are needed in EVs, hybrid vehicles, battery
storage, meters and power distribution systems.
And finally, NN uniquely has in-house gold,
silver, palladium, nickel and tin plating capabilities by rack or
barrel method. This gives NN a unique one-stop capability for
customer’s metal component requirements. Adding to these production
capabilities, NN’s employs in-house proprietary tool design which
enables it to move fast.
NN’s pipeline of new business opportunities
entering 2024 is focused and approximately $500 million in size. NN
is continuing to evolve and strengthen its growth programs by
focusing on specific product applications including electric
steering systems, electrical systems, braking systems, electricity
distribution, battery management, fluid management, EV charging
systems and medical components. These are natural markets for NN’s
focus on precision engineered metal products and in-house
proprietary tool design.
“The NN sales team did a great job in 2023. Our
sales growth goal is 5% CAGR, and this level of new business wins
is consistent with our objectives and shows that the actions we
have in place can deliver tremendous forward value,” said Bevis.
“Coupled with our revamped approach to operational performance, the
company intends for these new business wins to be additive as we
increase our customer retention rates on existing business.”
About NN, Inc.
NN, Inc., a global diversified industrial
company, combines advanced engineering and production capabilities
with in-depth materials science expertise to design and manufacture
high-precision components and assemblies for a variety of markets
on a global basis. Headquartered in Charlotte, North Carolina, NN
has facilities in North America, Europe, South America, and Asia.
For more information about the company and its products, please
visit www.nninc.com.
FORWARD-LOOKING STATEMENTS
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 statements may discuss goals, intentions and
expectations as to future trends, plans, events, results of
operations or financial condition, or state other information
relating to NN, Inc. based on current beliefs of
management as well as assumptions made by, and information
currently available to, management. Forward-looking statements
generally will be accompanied by words such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,”
“intend,” “may,” “possible,” “potential,” “predict,” “project” or
other similar words, phrases or expressions. Forward-looking
statements involve a number of risks and uncertainties that are
outside of management’s control and that may cause actual results
to be materially different from such forward-looking statements.
Such factors include, among others, general economic conditions and
economic conditions in the industrial sector; the impacts of
pandemics, epidemics, disease outbreaks and other public health
crises, including the COVID-19 pandemic, on our financial
condition, business operations and liquidity; competitive
influences; risks that current customers will commence or increase
captive production; risks of capacity underutilization; quality
issues; material changes in the costs and availability of raw
materials; economic, social, political and geopolitical
instability, currency fluctuation, and other risks of doing
business outside of the United States; inflationary pressures
and changes in the cost or availability of materials, supply chain
shortages and disruptions, and the availability of labor; our
dependence on certain major customers, some of whom are not parties
to long-term agreements (and/or are terminable on short notice);
the impact of acquisitions and divestitures; our ability to hire or
retain key personnel; the level of our indebtedness; the
restrictions contained in our debt agreements; our ability to
obtain financing at favorable rates, if at all, and to refinance
existing debt as it matures; unanticipated difficulties integrating
acquisitions; new laws and governmental regulations; the impact of
climate change on our operations; and cyber liability or potential
liability for breaches of our or our service providers’ information
technology systems or business operations disruptions. The
foregoing factors should not be construed as exhaustive and should
be read in conjunction with the sections entitled “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” included in the Company’s filings made
with the Securities and Exchange Commission. Any
forward-looking statement speaks only as of the date of this press
release, and the Company undertakes no obligation to publicly
update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as
required by law. New risks and uncertainties may emerge from time
to time, and it is not possible for the Company to predict their
occurrence or how they will affect the Company. The Company
qualifies all forward-looking statements by these cautionary
statements.
Contact:
Tim
PetersMedia Contact+1 773 318 7558tim.peters@alphaadvgroup.com
Joseph Caminiti, CFAInvestor Relations
Contactjoseph.caminiti@alpha-ir.com+1 312 445 2864
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/acf4c72f-1e46-4ca2-956b-576745234c76
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