NTN reports fiscal year 2002 results

NTN Reports Fiscal Year 2002 Results NTN Corporation (Japan) has reported financial results for fiscal year 2002 just ended March 31, 2003, along with forecasts for the coming year. Sales were ¥246.33 billion (USD $2.09 billion), up just over 4% from ¥235.85 billion ($2.00 billion) the previous year. Operating income hit ¥10.02 billion ($85.0 million), up almost 200% over ¥3.36 billion ($28.5 million) in fiscal 2001. Net income, however, fell 60% to ¥323 million ($2.7 million) from ¥810 million ($6.9 million) the year before. A large portion of this year's operating income shortfall, however, was related to expenses for NTN's early retirement program which put 700 employees in retirement on May 15. For the coming fiscal year 2003, ending March 31, 2004, NTN is projecting a modest sales improvement to ¥252 billion, but a dramatic improvement in profitability to ¥6.50 billion as the company moves beyond non-operational early retirement expenses and stock market losses which plagued this year's results. As long ago as February 2002, NTN warned of upcoming losses and profitability issues, planning for layoffs and plant closings. The company initially planned to cut 1,000 jobs or 12% of its payroll by the end of March 2003, but several estimates put the final number much higher. The full restructuring program, NEW Plan 21 (NTN Evolution for Worldwide Plan 21), formally kicked off in April 2002. NTN's generous 2003 early retirement program, announced in early February, attracted more than 800 applicants for the 700 openings described above. NTN has not yet adopted Japan's new option for consolidated tax filings for parent and subsidiary companies. In March 2004, however, Japan's 2% tax surcharge for consolidated filing will be eliminated; many companies such as NTN are expected to take advantage of the opportunity, consolidating their financial results and filings.