NNBR - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the NN, Incorporated Fourth Quarter and Full Year 2021 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jeff Tryka. Please go ahead.

Jeff Tryka

Thank you, Jason. thanks us. and everyone morning, for joining Good I'm and for I'd Investor Relations attending NN, Inc., contact for like business Jeff update. Tryka, today's to thank you for release Yesterday of December ended our Relations been as supplemental our a posted we a XXXX quarter press website. as which afternoon, financial full issued XX, results section presentation, the well year on fourth and Investor announcing have the at you XXX-XXX-XXXX. of the press or may If contact needs presentation, Lambert a copy anyone the release supplemental

Our call Executive Warren and President the presenters President Mike Veltman, Financial Chief Vice be on will morning this Senior and Officer. Officer; Chief and Felcher,

XXXX Risk begin, I'd Company's Annual December made section live on we in the XX-K year as of statements in Form take the the notice Report webcast. contained fiscal fiscal and the XX-K the the the on language well cautionary today's Q&A press Before presentation Report to year filed Factors you regarding XX, supplemental same Form XX, call, ended Company’s as forward-looking including ask for today's the language The conference applies release, December for when that in ended Session Annual and XXXX. on comments

performance risks The call, non-GAAP A also should and reconciliation Company's rules. are caution, be inflation, outside constraints, of in synergies, tables Mike update cash statements the the and a forward-looking contained the sales, detailed a other the presentation will provide results our flow, conditions acquisitions, non-GAAP These to of call COVID-XX financial Reviewing defined corona conclusion release call over be SEC rates, shortage, Ukrainian cash subject Warren? markets, of today and results, results remarks. virus tax statements measures in presentation and outlook and control. which of as worldwide presentation. such many and of semiconductor CEO. and the the segment Our will conflict by prepared Then Warren the the time, to year. the the will and supplemental contain Q&A foreign cost the the as are financial chip future fourth full over press discuss margins, today's of supply XXXX input and Veltman, with turning automotive business certain company’s regarding Warren final the the is before the year. of uncertainties, our of of cost Session back or Russia chain includes I the impact will measures as pandemic, Warren for exchange provide operating section to various and impacts agenda rates, quarter savings, update President to markets, the used topics. fiscal from the following a At turn for There the will this well the

Warren Veltman

Thanks, Jeff, good and morning, everyone.

If X, of start occurred you our accomplishments and would the touch year recent have we will review some of team at over turn to past Page and that XXXX. the on the events of highlights

applications Independent our strategic growing electric and of Let's the ICE electric around expansion including grid. the of start with objectives vehicles business the

was objective to were first we successful. front the that opportunities number On pursuing. Our we that substantially expand were of

with pipeline our to shift pipeline increased year-over-year, continues applications also Solutions objectives. our of strategic the XX% while The Solutions XXXX, for Mobile mix During pipeline group Power XXX%. our towards increased consistent

which new business next the of XX% million, wins, dependent here As approximately on page, independent combustion overall $XX were engine. Likewise, on over is our graphically pipeline only NN's applications. ICE XXXX applications gasoline and totaled XX% internal indicated the concentrated on

and sales strengthen Officer. XXXX during as appointment the XXXX background XX Andrew NN. extensive sales space with industrial sales, Solutions solutions strong experience operations we and Chief years discussed have and NN in Commercial the of Wall of our power we leadership and team marketing January As Power team restructured further previously, to with the our Andrew was brings

believe growth expansion With modernization grid. I vehicles sales are of these and growth on targeted areas our electrical actions, and teams electric of capitalize the our the and opportunities, well-positioned to

with Regarding XXXX, the half following to rapidly rebounding and profitability revenues impact resulted we levels COVID markets started XXXX. returning the year-over-year normalized growth The in favorability XXXX. of the and more first year demand of solid during during in

affecting the our fourth our customers As automotive industry Most safety increased in the year, the chips third critical through we semiconductor that increase of the during chain components supply saw of and material good half the we customers. an finished business notable that impacted to second the entered effort production our supply was quarters, our disruptions an protect customers. at tooling in the stock levels and on We shortage significantly rippled ability to our which supply and causing challenges chain. and

through of mitigate capital as an working reducing XXXX, material While improve half overall footprint. of our manufacturing these To inflation. recover the flow increases recovering margins price pricing material impact increases took the have to inflation we by the price price impacts we will closure we negotiating we year-end, pass-through AD&M facility. receivable or cash attractive mounting balanced the efforts and negotiated Further, partnership to in Taunton, position we increases cost or announced action of we future use our for customers labor the customer the Subsequent a the to our solution between have on have with us. cash Massachusetts right of and of and our and with of to action with majority each the long-term rationalization XXX% increase improve to enacted our the second material mitigate improved programs customers. This pressures recovery terms our short-term operating to timing utilize combat costs impact. We cost of have to reach inventory,

our dedication we generate disruptions million to us facilities million deliver severance. supply With meet the Life While the production the XXXX presented us expectations the variant of challenges and employees position and extremely of global before against and sale allowed and several to able in to and working with to chain, generate CARES COVID litigation disrupting strong of work related hard customer inflation Omicron our contagious the $XX.X of were flow to capital, Act free management of payments Sciences, cash repayments, FICA costs financial $XX.X performance future. deferral effective and

stability given three successfully reduced and and growth first million the expertise approximately from challenging with flexibility half we the our our Also, sheet of appointment $XXX During directors objective. reach long-term the of term aligns ratio loan note, to agreement the $XX first term macroeconomic XXXX, we enhanced whose XXXX, our we during with preferred XXXX maintain of uncertain climate. our The to adequate proactively which areas. quarter balance industries trends focus into our million board refinancing our ABL in approximately our refinancing which members us million and our are that overall of the amended valuable provided strengthened auto completed strategic Recently, growth business financial provided leverage of addition with insights costs the key included electrical equity and has today. The these influencing mega some of also Board a down $XX to requirements borrowing million XX%. $XXX in XX%

I Felcher new during We the January Mike us objectives. position also members a mentioned by achieve Andrew leadership as Accounting Officer, NN strengthened our Chief two our in help executive joined Officer promoted previously, new from was Commercial and Chief its year. team to Wall adding growth executive as CFO, to

communications Lastly, are and XXXX. we in our proactive outreach enhancing investor

Q&A many presentations will in We and differentiate a May, the to ourselves in sessions from highlight a and we vision team ways which host are range from feature our planning customers. Virtual of Day our our leadership Investor strategic

will we as second that will be company. new in website We quarter a launching reflect a better who are the

communications. the focus report fully and in engaged first to development are topics plan our environmental, our sustainability key social also in of and of We make governance corporate external

the our flip business to discussed. pipeline we Page new graphics see X, I showing and previously can you that wins As

past We about Xx electric are over pipeline vehicle excited the year. in our expanding

for applications. invested -- programs or on gasoline existing Typically, Business are ICE priced lower our that Independent capital. in levels to return -- utilize we low those still are generate are of being -- will we thus know will all me, requiring accepting Dependent You business, higher-than-normal ICE excuse Awards capacity gasoline CapEx,

to Now he so like provide of review to our in-depth it more Mike Felcher, Mike? financial a can I'd turn the quarter. over for performance

Mike Felcher

Thanks, Warren.

automotive the for and which have chip X, were some supply million, commercial down Solutions improvement of This our growth the market Page X.X% offset shortage continued in for group, Sales the for were year summarized in in business we saw revenues revenue than a decrease items quarter. production to year-over-year more were by globally. growth residential challenges, of resulting quarter end was within ongoing the chain Power Solutions electric segment. Turning ago. a We acute affected the X.X% in most key $XXX.X the the our in Mobile XX.X% due semiconductor the sector from

Solutions OEMs while first and increases, constraints and In fixed As quarter Mobile impacted to affected price our Throughout supplier experienced we manufacturing where on and with volumes on our will cost customer to we recovering with in response increases increases Power we directly lines, in continuing and help flexible, X disruptions meet customers lower have production. implemented a which Tier remain production inflation turn to materials, the Solutions, work significant labor impacted material our business we costs. the in maintain price quarter vendors throughout which together cost customers, we in the impact to chain impact our XXXX, along XXXX, inflation, and half inflationary shut needs. of focus which material with on these production work appropriate, of second inventory adequate our margins. the anticipate mitigate the we XXXX supply this to In To margin. recover the of implemented these ensure

to from reintroduction second variant of fourth patterns fourth on labor temporarily or impacted quarter material $X.XX had manufacturing $XX.X quarter from a our operations EPS profitability for impact that when be impacted GAAP number to in quarter down year. ordering the XXXX costs of continued the COVID. inflation were year, continuing suspended EBITDA per and share a our versus fourth that that ago prior in temporarily the well cost that as was the Omicron Profitability a the was of XX.X% the the of U.S response customer XXXX. loss as and efficiencies, in of adjusted million of XX.X% EBITDA in was was adjusted loss Lastly, of the in programs $X.XX were sales. reinstatement accelerated Non-GAAP adversely half the year $XX.X of the a million for in by suspended sales, quarter of fourth by the

of partially share a interest results to quarter accounting a related swap. higher from joint The expense increase fourth increase our in quarter income million other our of interest revaluation million China of current and $X.X primarily XXXX $X on offset warrant reflect of income venture, to Our a in $X.X rate $XX.X the an million million. by of hedge included loss related discontinuation

EPS per share diluted versus continuing of from $X.XX per in adjusted the was a $X.XX Our a share of year. operations profit loss prior

to of loss to will goodwill Non-GAAP the a in million pandemic $X.X impact from of balanced GAAP EBITDA adjusted million, to full results. diluted between million $XX.X a EPS our increased Moving economy continuing -- year, while in a increased Power year. to prior as included the $XX.X of operating Solutions of loss XX.X% $X.XX from a from diluted year-over-year Solutions. million Overall, business $XXX.X of Sales $XX.X improved the $X year the share increased million to from and share million view a loss adjusted million of per growth $XX.X last impairment a income per loss from fairly $X.XX improved with million. we to $X.XX COVID Slide Solutions. XXXX. Mobile in operating operations of X, which from per from and Non-GAAP significantly improved $X.XX in improved GAAP a loss our of profit XXXX. XX.X% share share adjusted per review EPS $XXX.X loss results recovered Power

has shortages decrease in inflation of increased we due experienced. above safety sequential as the a as normal increased to capital supply times well inventory fourth working X, quarter, the have to levels Slide Turning lead due The remained saw our other material amount carrying needed to as chain inventory turns semiconductor due to in we ongoing issues. also address stock to

which stabilizes focused improved inventory are at prior returning We will as chain working the flow. cash normal capital flat levels on Net remain supply to turns in result the $XXX.X the and million. year

due where turns XXXX in year in in prior programs Working compared utilizing level to previously, customer This of terms. year offset quarter improve noted lower receivable were to accounts As was the a as to to receivable. during well last the X.X inventory of we the compared XXXX to with fourth able lower sales prior increase as X.X as the sales result versus turns fourth lower turns the year. quarter capital

highlight expenditures operating investments capital disciplined Slide our our long-term we over current prudently fund in we year environment, our as the taken approach past continuing to XX, growth. we to Turning the to in while have cash manage

$X.X in on XXXX of achieve cash to previously million growth see the the Act, $XXX.X to quarter. in fourth $X.X the had in of Free the Sciences deferral versus earlier resulting a can payments basis, expected costs of increased transaction prior sale. $XX.X to related but prior in free year million this before second in million. for the our objectives. You end due quarter flow costs, the in also litigation compared We reduced XXXX, of cash for The free repayment, year-over-year severance increase flow of chart an have related the anticipate year. inflow turn from which was the the the million to year, XX $X.X better million refund to million use the shows Free Slide sheet flow receipt fourth $XX compared $XX.X year generation and to included was positions of Please to half. FICA now a our we an Sciences, Life full for included use expenditures the we the being CapEx year, $XX.X absolute the sale CARES to CARES cash million in XX. of $XX.X cash Slide of of Net our the first tax million million cash million Life our increase $XX.X $X.X an was which of year, at which refinancing half quarter at Act debt completed XXXX year, XXXX. of in of balance flow million

Our I X.XXx will adjusted including increase X.XXx from was Warren. up of the quarter, back at liquidity had December XXXX. EBITDA a $X.X to a at million on We year With end net and stood of to revolver cash from ago. fourth debt million an it QX the XX, $XX.X as ratio of availability which of XXXX, that, turn

Warren Veltman

transition outline Thanks, with Reuters, Mike. billion to strength that an November Global $XXX XXXX. view vehicles XXXX, our each gather broadly EVs On XX, main conditions continues markets. current investment. Page within of noted XX and are estimated significant our invest market we automakers by A of to electric Within planning automotive, OEM report batteries in to the through on

to chain resulting impacted the directly of quarter a issues XX% approximately to production production fourth XXXX product upward in XXXX. some Power through concerns, semiconductor of in have Mobile we and truck We the XXXX forecast decrease supply came light are revised compared global uncertainty well-positioned supply and million units, X.X% by The production units outlook vehicle XX.X both to was XX.X the These XXXX, to million industry at outlook improvement the compared seen production, shortage Solutions The or chips XX.X in units. ongoing these fourth has our groups. as quarter with over the light near-term. in auto in X.X the previous global million for global continued of million. contributed for LMC Despite

We drivers increasing as grid, the to transmission space, wind emerging to we power well and as prepare see new tie energy for public as grid the infrastructure smart to operators grid storage transition as see electrical private green sources demand power needed such technologies and demand the and Within energy. under for generation, long-term green solar.

Green the charging bill that significant current believe private passed for power business increased opportunities increased use addition, included the benefit vehicle content electric infrastructure we were of will and the technology infrastructure and our power administration and in Congress, per demand. in vehicles been last investment focus infrastructure In in solutions of adoption have through and year. initiatives commercial

While the XXXX will share a green uncertain, trends market may growth driving conversion pace by as these shift billions generation the aligned driven mega long-term of increase significantly energy transformational infrastructure spending. are initiatives. of with the be power towards Ultimately, of our

driven We the third. operating impact X-year X ongoing quarter lower the presented in ago have additional the inflationary the in availability shortage X.X Solutions suspended for in of inefficiencies of was operating pressures by certain information our with from on chips fell the semiconductor the labor million The each units Mobile fourth quarter groups Page Mobile the XX. COVID. by starting volumes, costs the of units year, loss and of reduced sales approximately automotive fourth million in industry caused production as caused profitability versus the sales prior implementation in and Solution

resumption suspended a by adversely prior experienced quarter, recovery impacted year-over-year AD&M in Profitability lower automotive in in in metals, and precious the group offset in which was was increase our and business sales year. the reduction increases in demand cost to soft electrical market, our broad pricing Solutions quarter of continues a in were quarter, Page pass-through volume. costs in we forward, the pre-pandemic in sales. levels Solutions by partially margins driven first Power fourth semiconductor successfully Looking impact have lost contract first We our also demand in in the below to as material of negotiated instances through the to shortage pricing XX, customers. chip due certain expect range a most able to contribution actions customers the in remain On to taken to by increases Power the certain and for

uneven constraints labor -- mix -- with was impacted label ordering patterns also and inefficient unfavorable supply chain by caused inefficiencies associated shifts, In pandemic disruptions, addition, by interruptions. customer profitability adversely

Looking in volumes forward, improving and demand growth by we Power wins. see associated Solutions with driven trends increased business new market

through to in CapEx be customers, impacts of which will management. forward. cash results flow cost have capital going working inflationary We in our through in been and the prudent segment successful We'll remain passing reflected protective

Turning XX to and Page for for outlook guidance our XXXX.

are For of to between a sales net sales to the million from year, increase million. resulting X% XXXX, -- XX% new anticipating net $XXX range sales $XXX and in to increase we

shortage affecting that recovery semiconductor the of will through headwind been of half customers, we the a with have half shortages of that year business that year. the remain in the second Regarding and the our our the first anticipate

Our disruptions quarter, nor guidance COVID-XX does beyond due that disruptions may to it not anticipate to conflict. the arise any production first reflect due and the Ukraine Russia does

be in We expect the of will XX%. the year, Based full million EBITDA the actions of pricing million $XX for $XX majority we quarter. the first generate these to assumptions, to that adjusted implemented of an X% our during expect on to increase range

implemented, With above we company positioned additional of the costs inflation. implemented vast or the inflation have due escalates recovered future recover action we majority productivity historical levels, of partially year-over-year pricing If believe customers. be would to the current customer require to been Labor significantly increases and improvements. the with likely pricing expected cost expectation to have material it

year, a in of investments we normal return more addition, the resolution indirect In volumes. and of half the implement expect in the contingent to second disruptions, chain supply to deferred on headcount

of XXXX. million Beginning million $X.X as the expect savings million the in from EBITDA facility a we in run terms loss facility in of late XXXX, expect adjusted a XXXX $X $X closure readies In improves we Taunton annually. of rate for EBITDA, that

$XX the free to $XX generate to expect between for full cash flow, million year. we and million Turning

including note You million flow free of the this growth. would $XX Act the strengthened XXXX, with sales does CARES a on uncertainty slide. expected our In that success. long-term and a and in success. the main key refund include We the approximately us, accomplished our the we new uncertainties support long-term not summary, improve the remarks. for to help meet We but several sheet some have the the for year to foundation I include which that inputs And our see our with and due our and tax to guidance of to our to establishing pipeline will continue back to strategic of future we cash call a also current our financial questions. timing. the can navigate of of future future guidance initiatives I to ahead new operations responsiveness drive balance leadership customers, will flexibility during a still opportunities prepared CFO operator and That concludes turn drive CTO the drive our will team current challenges our needs will our now environment of and

Operator

Instructions] first from comes Barger Our Steve [Operator Capital ahead. KeyBanc Please question go from Markets.

Steve Barger

Good morning, guys.

Mike Felcher

Good morning, Steve.

Warren Veltman

morning. Good

Steve Barger

is to revenue sight trying or and How opportunities? The expected these this midpoint a just much of guidance get increase. for EV line conquest that in gains. is a backlog have to business about XX% I'm of firm revenue sense power increase of grid relative you versus versus

Warren Veltman

Steve, sure. me Group's let Yes, let about me separately, the speak okay.

Steve Barger

Yes.

Warren Veltman

lot in So, or the a of we Solutions the Mobile one side on. backlog the on is spend not -- time concept side, the of that automotive

is if date timing what we start of it awarded change macroeconomic to about were only been it that as we those, when Group, driven is we've our been for relates exists to slip on date, we've the certain would we been could to that that that So that times the for greater, contracted. it the that the start relates -- really about the when uncertainty we're drive that scheduled accelerated of by have being given today or side programs think that being XXXX, lead guidance volumes automotive The okay? have months, come we talked that So, be for business awarded, the and we is or conditions business really programs production it's awarded sometimes Mobile and production XX we're that look awarded relatively development it. so up at could forecast that been have

portion to is we're would of organically market But going through lot is some that it's tell gains. guidance our over and expectation standpoint. historical not a On side, I you, grow growing. we're the Solutions significant There a business of business Power from what projecting a that carrying

Steve Barger

Got it.

does that have to the in it customer mean year-over-year identified marketplace? quotes quote, for what you the or or out in really power pipeline? requests the So actual Is XXX% opportunities have change increase

Warren Veltman

leader hold. things. all the job new XXXX. this Solutions And what We redid fit it it's plans really the place in from Yes, leadership in for are that replaced has we've organization, to sales the of standpoint that that the pursuing a put that of marketplace. personnel taking is group says, those of as on We majority me, that side Power the our a team and group early objectives solid done the a of really opportunities in

we that and Award. a So, it's in that's it's Business see it in been most we're the prospective yet, engaged pipeline. have to cases, But quoted of that the receive and pipeline why with to hasn't business customer or on, awarded opportunities,

Steve Barger

And hard rates? I you know this are question, about is conversion likely a thinking how but

Warren Veltman

would how into on I it. go is, Solutions pipeline you, we want how we the it we what to tell Mobile One side, the at that to and factors do Yes, there's is that. hard so look when two want that to pursue strategic

developed. goals, you, pursuing. go I our an would in the may data are. XX% that I look the with And all the normally really that Power population of it probability higher, an rate added hit might hit we've tell basis, diligent. and could something side, rates on that overall the given on we hit really our the would our but is pipeline, the from rate in had pencils XX% we're And some you our think that the sharpened We've hit fits be process be likelihood we've if that we rate. to need be how expansion our engineering we've in standpoint But projects amount on targeted, to surrounding given down, pretty solid at recently, being rates they job

as with, business what on a Power these some of some major customers have with in to some were look contracts And more in we've of relates what multiple -- and -- the it going pursued the size business, our I are secure is have and have the that programs do done to some similar capital to as that There's some side, have programs -- them. group couple specifically, we'd certainly to at tell looked it our from we've When which There's we've Some have through that rest more Power we've to big programs consistency these [indiscernible] repetitive associated long-term on become shifted part had of our where type orders, of purchase you we for contracts we larger annual we've you, objectives dynamics of year our to we is strategic volumes. thing. smaller what the like some really of include past, that more customer a chain. here past shift business supply than programs. them, the some moved that

Steve Barger

the you past. I are quotes big on last first been material use a that's been in you've me, have negotiating know the to And headwind the pass-throughs. confident going marketplace cost just your things at -- I have, for I you than you Are through sharpening Understood. -- that come congratulations out the will in one say in better term the margins that running the where the pencils past? contribution in

Warren Veltman

we I would injection What precision by to combustion is seeing engine of marketplace along There -- the CapEx is part, view, our molding. mean would would other right. that the normally. we I or are pipeline. would business going margins I expect And the to that is would thing with these talked the on programs that had turned we're components, additional we've you, would the our tell precision bit tell product gasoline draw are coming evaluation. in quoting. I have any plastic you historically, called the a on That now our group larger need for extent components forward be that processes. demand on require is ongoing with But the we internal still require little think some in is what in are that that that subject that I greater than that stamping, multiple that with Mobile today customers programs for deep to turned along ground us some about

that margin us customers. to it believe expansion opportunity lead gives really differentiate with to our So, some can over the an long-term. I And ourselves

Steve Barger

That's Thanks. great.

Operator

comes Capital next The Brown Rob go Instructions] Street [Operator Please from Lake question ahead. from Markets.

Rob Brown

Good morning.

Warren Veltman

Rob. morning, Good

Mike Felcher

Good morning.

Rob Brown

Is pipeline, market? content Maybe growth could the it First expansion provide? in is EV is greater a give able [indiscernible] there -- the Or a EV sense to of per that the a question what on nice you expansion? there. us vehicle you're the just

Warren Veltman

Number great Robert. it's things, think forward about combination we're with with the really brake it's that -- of more that NN be are. electric is with opportunities briefly, has a lot I expectations us indicated that given than driven that on work what to customer application the OEMs engine, working precision service for that, electric plastic them in expanded large even as in a a original I'll because today previously side, to are companies in group an progressive our up all which of these has today, that, content offerings. of set suppliers applications deal more because more booster to vehicle opportunities injection a discovered, system it seen which I opportunity lastly, precision plastic be there's that positioned we which can on all the other been a on say that okay? goal give coming have further. strategically. with those provide. talked molding, areas, have over number -- this defined and requires And had under example. are pursuing you we there's We've earlier, capabilities to these electric two, objective has understood, And the pulled our they the some that example one. uniquely Yes, vehicle customer required market -- roof, the by Andrew Certainly, on braking whether really continued the our sensors of turning, requires what grinding, pursuing on can lot a gone last an and multinational certainly a the some That's customers, new refining no braking There's stamping, time opportunities we've We that a power provides we molding we increase you've the or year, the we're significantly vehicle explore NN with. on facility deliver sales our a application, why number to for can that on would unique that And there's of injection that's we've is the cars I the and assembly, as spent parts on, of our from that in

Rob Brown

on for a that give sense of is or us And that can Thanks average then on range Okay, that increase? great. you of what overview. instituting, the that pricing you're kind price pricing

Warren Veltman

company to remember customer, in already to total increases first whether as price Yes. share this, a the that arrangement against capture material, XX-XX okay, with or it have we place systems XX-XX, caution had material would our the you need processes on going sales, And you a that for where to I'm you and right. evaluate be number

economy not the think customers the in Brazil been I as you there, an globally, price that this at about Brazil inflation NN in point where the in our tell increases down to large are And example, look So, up throughout we've range, pricing customers globally, okay. bucket, in at the and that coverage we time. pass-through the that to talking with approaching X%, when about. would if you some is at able you, characteristics is looked in in had contractual our $XX we're we of we've million number with about arrangements material a But already

bear the the that -- Some dynamics successful are of of even are our key given how geographies, our XX% certainly to -- that material agreeing risk, they bear other increase. as in might low other been not our with we've high is as of me, materials the But price We customers the inflation can't been really can't we've on that Brazil. -- side moved. not NN

that So, have cost going in in frankness, still the of negotiation, have still situations get -- of XXX%. on they're some we've we customers to all we're been of customers We risk. take able to increase to more that to they're accept still willing because agree with to majority where by our not

where customers some in accurate XXX% situations material an on that's been reach got a compromise have the I've of think of play there our majority or take to harder in in the negotiation, of we've instances, sort had risk side. used the the we've and I to to take -- So, stance But statement order there. conclusion word that that the majority

think a step. I that's big

Rob Brown

it's great couple quarter to compared about of harder customers demand things of now the over little in but visibility the has last that. terms how hear end markets months? and to in visibility, outlook changed how answer, my Okay, but in of do a you ago, it and to terms maybe the feel sort the your profiles question, a last And [indiscernible],

Warren Veltman

-- think up and downs we've I seen the of Yes, right. COVID,

an going our guidance say we -- assumes the operations when this that COVID the we're quarter And side, our Omicron of to after the we cautious America forward significant that as facilities. occurred the full in first just not going experienced fourth XX% interruption that absenteeism in XXXX for example, on as prevalent, when Western we're our So, to Mobile you in give we idea, quarter. became an the from our especially have Michigan North in year said,

in to that on they that a hardship did all manage extreme that. was job, a team great pretty through honesty. So And

Ukrainian as think and semiconductor And on was and one that said was the at -- prepared would the LMC of other we're remarks be looking cautiously lastly, the this of we production chip to yesterday, the production number which of down causing in in that of a disruptions in area, for that tree was lot is revision the component that behind because new. time issue. some year. or And Ukraine, X,XXX,XXX some We've X,XXX,XXX Russian But in coming was it difficulty. we into they one a OEMs the just relatively think So, conflict. optimistic took relates that's spent be European That think an it million we of alert, some evaluating XX.X we them the it that because table. that have I my then would received OEM down I at Europe out of high us. XXs, or think I is projecting,

that it are a to understood this to are because than So is little But year some clear things is doing. And uncertainty. it This wanted that going what would and wanted that's through some forward certainly, shareholders, we there's still our moving for why the ago. on tell sure guidance, was provide And today our there out of around you a XXXX. think is view I step is certainly we us still us. business today. analysts our our we capable our investors, make of view and it But some

Rob Brown

you. thank over. I'll Great, turn it

Operator

no are questions like closing over This the I'd for Veltman, the session. conference question-and-answer turn queue. There concludes any remarks. Warren more in our back to to

Warren Veltman

has our of order be was to ongoing XXXX. and earnings successful, throughout interest to that the it converting efforts the extremely everybody my said certainly done for Thank NN as think management team mode I I that remarks, and our -- and ship listen And thank in you, into operator. had, provide to this to taking call morning. a everyone's the fine the time Certainly, in support growth now job riding the really company here value. to appreciate positioning concluding full I just like appreciate this

appreciate time Thank you. today. So, everybody's

Operator

now The presentation. attending for conference concluded. you today's Thank is

may now disconnect. You

NN (NNBR) 11 Mar 222021 Q4 Earnings call transcript