NSK Reports First Quarter 2003 Results

NSK Ltd. (Japan) reported first quarter 2003 results, for the period ended June 30, 2003. NSK is Japan's largest bearing manufacturer. While bearing sales represent 64% of overall company sales, they account for 88% of NSK's recent profits. In fact, during NSK's fiscal year just ended March 31, 2003, bearings netted ¥22.1 million in profits while other operations combined to bring down the overall net to ¥21.2 million. Other business segments of NSK are involved in automotive components and precision machinery and parts. First quarter sales were ¥ 125.7 billion (USD $1.06 billion), producing operating income of ¥4.1 billion ($34.6 million), or 3.3% of sales. Net income reached ¥1.4 billion ($11.8 million), or 1.1% of sales. Bearing sales in 2003's first quarter were ¥80.8 billion ($682.1 million), netting profit of ¥4.3 billion ($36.3 million). NSK said bearing sales were up due to continuing strong demand and improved market penetration in both Japan and its overseas markets. In Japan, sales of semi-commodity industrial bearings were up slightly but flat in other markets. In North America, bearing sales to the automotive industry were up, but industrial bearing sales were, "disappointing." European sales were similarly up in the automotive sector but industrial bearing sales declined. Asia and Oceania were cited as bright spots, with economic growth and increasing local production in China working to push up bearings sales even as customer production shifted from region to region. Going forward, NSK said it expects to see a continued weak economic recovery in all of its markets. In that environment, NSK has, "continued to implement profitability improvement measures throughout the Group."