NN Inc. (NNBR: Quote) reported net income for the fourth quarter of $8.2 million, or $0.48 per share, up from $4.9 million, or $0.29 per share in the fourth quarter of 2011.
The latest-quarter result included approximately $5.4 million, net of tax, in net non-operating gains. The majority of these gains consisted of $7.2 million in net tax benefits related to the reversing of valuation allowances on deferred tax assets at U.S. business units, taxes on international distributions and increasing tax reserves. Partially offsetting this net benefit was $1.0 million of impairments made on certain non-operating assets and $0.8 million in foreign currency exchange losses on intercompany loans.
The prior year quarter result included about $0.8 million, net of tax, non-operating foreign currency exchange gains on intercompany loans and $0.6 million in other non-operating income.
Excluding this net gain, net income from normal operations for the latest-quarter was $2.8 million, or $0.16 per share. Excluding gains, net income from normal operations was $3.5 million, or $0.21 per share for the prior year quarter.
Net sales for the fourth quarter of 2012 were $80.2 million, a decrease of $16.2 million or 16.8%, compared to net sales of $96.3 million for the fourth quarter of 2011. Approximately $14.9 million of the decrease was due primarily to lower demand for the Company’s products in European and Asian automotive end markets. Sales were further affected by the negative impact of foreign currency exchange of approximately $1.2 million and the net unfavorable effect of price/mix of approximately $0.1 million.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share on revenues of $84.68 million for the quarter. Analysts’ estimates typically exclude special items.
For 2013, the company currently forecasts revenues to be in the range of $365 million to $375 million, relatively consistent with its 2012 revenues of $370 million. Analysts expect the company to report revenues of $383.70 million for fiscal 2013.
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by RTT Staff Writer
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