NN, Inc. Announces Another Strong Quarter of New Business Awards at $17.2 million in Q1 2024
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The announcement by NN, Inc. regarding their $17.2 million in new business awards in the first quarter of 2024 is a positive indicator of the company's growth trajectory. It is essential to highlight that consistent performance in securing new business, especially above the company's target range of $55-$70 million, suggests a strong market position and the ability to attract and retain customers. This is particularly noteworthy given the strategic importance of the regions mentioned: North America, South America, Europe and China.
Furthermore, the company's focus on sectors like vehicle electrification and greenhouse gas reduction solutions aligns with global trends towards sustainability and innovation in technology. The diversification of NN, Inc.'s portfolio, coupled with its operational improvements, could potentially lead to increased margins and profitability. However, investors should be aware of the risks associated with the integration of new business and the potential for unforeseen operational challenges.
The immediate startup of over 70% of the Q1 2024 awards suggests a rapid revenue realization which could positively influence NN, Inc.'s short-term financial performance. The average award size of $700,000 across 23 wins indicates a balanced distribution of contracts, mitigating the risk associated with dependency on a few large projects. It's also important to consider the company's forward pipeline of $610 million in potential new business when assessing future revenue streams.
Investors should monitor the company's ability to optimize dilutive business and the effectiveness of its multi-year transformation plan. The shift towards more accretive business could enhance shareholder value if executed properly. However, the operational scaling necessary to accommodate the influx of new projects must be managed carefully to avoid overextension and to maintain quality standards.
From an industrial perspective, NN, Inc.'s engagement in the orthopedic medical products market and infrastructure-related sectors such as electrical grid expansion is indicative of strategic alignment with high-growth industries. The emphasis on multi-functional teamwork across sales, engineering, operations and procurement is a critical factor for successfully delivering on new business awards and maintaining operational efficiency.
As the company advances in its targeted market segments, it should continue to leverage its technical expertise in precision metal solutions to capitalize on open capacity and new capabilities. The evolution of NN, Inc.'s sales mix and the strategic placement of swap-out and trade-up options at certain plants demonstrate an adaptive business model that can respond to changing market demands and customer needs.
CHARLOTTE, N.C., April 08, 2024 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today announced another strong quarter of new business wins, with
“We are becoming a force to be reckoned with in our targeted market and product segments. We are very focused and have a progressive plan to learn fast and react fast to great opportunities that fit our strengths,” said Verlin Bush, Chief Commercial Officer of NN, Inc. “We have deep technical expertise in precision metal solutions, open capacity for many products and are moving quickly on new capabilities that fit our future direction. We intend to lead in our product categories and add additional avenues for growth. It’s an extremely exciting time to be in our industries as a value-added partner. This strong performance requires multi-functional teamwork amongst sales, engineering, operations and procurement. We are making it happen.”
NN secured 23 new business wins in the first quarter, averaging
“Securing above-market profitable sales growth is a key pillar of our multi-year transformation plan. Our end markets are healthy with plenty of opportunities to participate at a higher rate,” said Harold Bevis, President and CEO of NN, Inc. “We are still optimizing some dilutive business at certain plants with certain customers, while at the same time adding new accretive business, and have been successful over the last three quarters. Already we are launching many new programs in parallel, while at the same time, rationalizing business at certain plants. Our operational performance is improving and giving us additional growth opportunities at certain plants where new business development had been constrained. We have a focused plan that is on track.”
NN’s notable wins were secured in target areas, including vehicle electrification and charging systems, fuel efficiency and greenhouse gas reduction solutions, electrical grid expansion and control, and orthopedic medical products. The company’s forward pipeline remains focused and robust, with
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.
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FAQ
How much new business awards did NN, Inc. (NNBR) secure in Q1 2024?
What is NN, Inc.'s (NNBR) 2024 target for new business awards?
In which regions did NN, Inc. (NNBR) secure new business wins in Q1 2024?
What percentage of the new business awards secured by NN, Inc. (NNBR) in Q1 2024 have an immediate startup in 2024?
What is NN, Inc.'s (NNBR) forward pipeline for potential new business?
