NRB Reports Fourth Quarter, Fiscal Year Results

NRB Reports Fourth Quarter, Fiscal Year Results NRB Bearings Ltd. reported results for fourth quarter and fiscal year ended March 31, 2007. Sales in the quarter (after excise duties) were Rs 845.3 million (USD $20.9 million), up more than 23% from first quarter 2006's Rs 685.9 million ($16.9 million). Quarterly net income was up more than 42%, hitting Rs 114.6 million ($2.8 million), from Rs 80.7 million ($2 million) in first quarter 2006. For the year, NRB net sales were Rs 3.105 billion ($76.5 million), up more than 18% from the previous year's net sales of Rs 2.616 billion ($64.6 million). Net income for the year was Rs 417.1 million ($10.3 million) up 20% from Rs 348.6 million ($8.6 million) last year. Results for the year are especially strong as NRB almost quadrupled its debt load in an ongoing and aggressive expansion effort. NRB, with five manufacturing facilities across India, manufactures needle roller, thrust and cylindrical roller bearings. The majority of its output -- 85% -- goes to automobile and light truck manufacturers. In the Indian market, NRB is also a key supplier to the textile and rail industries. It also owns SNL Bearings Ltd., a subsidiary which had been a drag on earnings but recently has begun to turn around. Results in recent periods have been damped by costs of the NRB's long-term and aggressive drive for sales and market share growth. Between 2006 and 2008, NRB said it intends to have more than doubled its manufacturing capacity for needle roller bearings, and more than tripled its capacity for cylindrical roller bearings. Sales and profitability so far indicate the plan has been working, particularly as profitability of the sales growth has more than kept pace with the added leverage.