Kinex Reports Fiscal 2003 Operating Results

Kinex a.s. (Slovak Republic, a joint-stock division of HTC Holding a.s.) reported operating results for fiscal 2003, ended March 31, 2004. Kinex is the largest producer of 2 - 130mm radial single-row deep groove and angular contact ball bearings, and radial single-row cylindrical bearings in the Slovak Republic. Tapered roller bearings were added in 2001. Kinex also manufactures straight roller and needle roller bearings, and specials. Primarily, customers include automotive, truck, industrial, rail, and aerospace companies. Kinex-KLF's fastest growing market is in rail applications, where it offers a variety of axle boxes and axle box bearings. Bearings are sold under the Kinex, ZKL and ZVL brands. Manufacturing bearings since 1965, Kinex became a joint-stock company in mid-1992. In September 2000, Kinex acquired ZVL Skalaca a.s.. In late 2001, Kinex acquired the former KLF-ZVL a.s. In both 2000 and 2001, Kinex reported the largest sales gains of any non-manufacturing company in the country. In late 2003, the company divested its KLF rolling elements manufacturing business to NN Inc. (USA) Kinex reported fiscal 2003 sales fell to Sk 1.47 billion (USD $44.3 million) from Sk 1.53 billion ($46.2 million), primarily due to the effects of foreign currency translations. Across most product lines, exports account for up to 90% of Kinex sales. Profits also fell, from 2002's Sk 135 million (USD $4.0 million) to only Sk 31 million ($936,000) for 2003. Kinex blamed foreign exchange effects for the profit drop, in particular the continued strength of the Slovak koruny to the U.S. dollar.