Goldman Sachs Raises 2004 Outlook for NSK

NSK Ltd. (Japan) saw its stock price rise and outlook brighten as investment banking and research company Goldman Sachs issued upwardly revised sales and earnings estimates for fiscal 2004. Citing improved economic and industrial market conditions, and April-May sales that were, "three percentage points above target pace," Goldman said, "we regard the company's fiscal year 2004 earnings forecasts as overly conservative." NSK had forecast fiscal 2004 (period ending March 31, 2005) operating profit of ¥ 35 billion (USD $325.2 million); Goldman Sachs has now revised that estimate twice, both up, currently suggesting NSK will see profits of at least ¥ 27.5 billion ($348.5 million). NSK has forecast sales for fiscal 2004 of ¥ 555 billion ($5.2 billion). As Japan's largest bearing manufacturer, NSK is also involved in other ventures, such as automotive components and precision machinery and parts. But bearings make up almost two-thirds of its sales and often all of its profits.