NTN Will Boost CapEx Spending by 60% Through 2007

NTN Corp. (Japan) said it will increase its combined capital expenditures in 2004, 2005 and 2006 by as much as 60%. The increase, the largest program yet revealed by any bearing manufacturer, will boost NTN's planned 3-year CapEx program by ¥ 51.6 billion (USD $474 million), to ¥ 138 billion ($1.3 billion). With the wide-reaching program, NTN is targeting a wide range of improvements, from expanding its export market penetration to building capacity for core products such as CV joints for automotive and light truck applications. NTN said it will target not only emerging markets as most manufacturers are doing now, but that it will also invest heavily in existing operations serving its traditional markets. 41% of NTN's CapEx through 2007 will be spent to increase manufacturing capacity for CV joints at facilities in the United States, France, and developing regions. NTN has been manufacturing CV joints and components since 1963, when it established a relationship with Hardy Spicer Ltd. By the 2007 end of the program, NTN has set ambitious financial goals for itself. While sales are targeted to hit ¥ 353 billion this year, 2007's goal is ¥ 450 billion. This year's targeted profit of ¥ 12 billion is projected to hit ¥ 22 billion in 2007.