NRB First Quarter Continues on Pace

NRB First Quarter Continues on Pace NRB Bearings Ltd. (India; BSE SMALLCAP: 530367) reported first quarter 2008 results, for the period ended June 30, 2007. Sales stepped back slightly from record fourth quarter levels, although continuing their strong year-on-year gains. First quarter 2008 sales were Rs 806 million (USD $19.7 million), up 17% from Rs 691 million ($16.8 million) in first quarter 2007. A slight slowdown in the fast-growing domestic Indian auto industry accounted for much of the fourth quarter to first quarter dip, although a larger effect is expected to be coming from slowing sales of two-wheelers. NRB credits its widely diversified market portfolio for largely insulating it from weaker sales by some of its customers, while other customers have had improving conditions and demand. A year ago, NRB announced an aggressive three-year expansion drive, targeting needle roller bearing production capacity to more than double by the end of 2008, while cylindrical roller bearing capacity will more than triple. Net profit in the first quarter set a new record, hitting Rs 117 million ($2.9 million), from Rs 86 million ($2.1 million) a year ago. Founded in 1965 as a joint venture with French needle bearing manufacturer Nadella, NRB now has an overall 13% market share of India's bearing market. NRB 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. The company has five manufacturing locations: Thane, Aurangabad, Jalna, Waluj, and Hyderabad.