NN, Inc. (NNBR) research, news, and more from GeoInvesting

Company description

Wed, 28 May 2008 04:00:00 GMT

NN, Inc. engages in the manufacture and supply of metal bearing components, plastic and rubber components, and precision metal components for bearing manufacturers worldwide. The company’s Metal Bearing Components segment offers precision steel balls for anti-friction bearings manufacturers; steel rollers, such as tapered rollers and cylindrical rollers; and precision metal retainers for roller bearings for use in various industrial applications. Its Plastic and Rubber Components segment provides precision bearing seals for use in automotive, industrial, agricultural, and mining markets; precision plastic retainers for ball and roller bearings in various industrial applications; and precision plastic components, including automotive under-the-hood components, electronic instrument cases, and precision electronic connectors and lenses, as well as various other specialized parts. The company’s Precision Metal Components segment offers precision metal components, such as mechanical components and assemblies, fluid control components and assemblies, shafts, and other precision metal parts used in automotive brake/chassis, thermal air conditioning systems, commercial refrigeration, automotive engine, and other automotive and industrial applications. NN, Inc. was founded in 1980 and is headquartered in Johnson City, Tennessee

Research

Fri, 27 Mar 2026 14:59:00 GMT

Nn, Inc. (NASDAQ:NNBR) ($1.56; $78.3M market cap) announced an acquisition expanding automated plating capacity for electric grid and data center components:

NN acquired a large-scale automated plating line from an existing customer moving from in-house manufacturing to outsourced operations.
The acquisition expands NN’s silver-plated busbar and terminal processing capabilities for electric grid and data center equipment.
The new plating line is larger and more automated than NN’s current operations, enabling higher-volume, lower-cost production and larger part processing.
NN expects the new capability to be operational at an existing facility in fall 2026.
New business from the plating line is included in NN’s prior 2026 guidance of $70 million to $80 million of new business wins.
Capex for the project is included in NN’s prior 2026 capex guidance of $20 million to $22 million.
The Company said it is funding the strategic addition from operating cash flow.
NN is initially targeting switchgear assemblies used in emergency power generation for the grid, hospitals, and data centers.
NN said it has secured more than $200 million of new awards from its technology-based new business development program.
NN expects to launch approximately 100 awarded programs during 2026.
The Company said it is guiding to a fourth consecutive year of improved adjusted EBITDA and materially higher operating cash flow.

Management Commentary:

“This equipment acquisition is another stepping stone for NN’s strategic pivot into certain high-value verticals. We are adding capabilities that open up the aperture for growth in the target markets of electric grid and data center... This is accretive business for NN.”

“This is precisely the type of high-value, capital-efficient growth opportunity that we are focused on securing... This business is key to growth in electronics, defense, electric grid, and data center... this is a win-win for all parties.”

“NN has a couple of other small acquisitions that we are focused upon... They are also focused on non-automotive, high-value capability expansion and profitable growth…

We have turned the page onto a new chapter and have a balanced approach to our revenue growth and repositioning. We are pursuing a few target markets that require safety critical features on linchpin metal parts and assemblies. We are extremely committed to a common engineering and manufacturing platform that can deliver value-added metal part solutions in several safety-critical end markets that offer high margins due to delivering high value. These include:

High-value auto parts – our #1 end market
Electric grid and data center parts – our #2 market, on a plan to become our #1 market
Defense, weapons, and electronic parts
Medical equipment parts”

“We are intentionally pricing higher on low-value, low-margin business like commodity auto... 2026 will probably be the most amount of new equipment installed in our company... 2026 is shaping up to be a fun year focused upon engineering-driven revenue growth.”

Our Quick Take

Recall, that we just talked about NNBR in a prior email because of its entry into the data center market. While today’s news might not seem that exciting at first glance, (since it does not increase the size of the order book the company has already communicated to investors), its relevance lies in the improved margin profile the acquisition gives the company. This is particularly important because we were concerned that the company still might not be able to reach profitability, despite the good news it had been reporting.

It might be a good time for us to reach out to management for a phone call to discuss recent developments, as well as the plan to address the unpaid, accumulating preferred stock dividends that we also mentioned in our prior morning email on NNBR.

NN, Inc. designs and manufactures high-precision metal and plastic components and assemblies for automotive and industrial systems, including powertrain, braking, HVAC, and electrification applications.

Research

Sun, 22 Mar 2026 04:00:00 GMT

Nn, Inc. (NASDAQ:NNBR) surfaces as an idea to watch on new award wins connected to AI infrastructure and data center computing equipment.

We are maintaining closer monitoring of NNBR, a precision metal components manufacturer, following its announced multi-year awards in AI infrastructure and data center computing equipment.

The company remains unprofitable, though current analyst estimates point to a return to profitability in 2026–2027. However, we do not think analysts are taking into account $65.7M of unpaid preferred dividends, a liability that just keeps compounding on the balance sheet.

2023-2025 Preferred Dividends

NNBR could be interesting if they get rid of this liability, but for now, this idea is looking kind of toxic. We presume it’s possible that the company could “use” the data center narrative to explore financing alternatives to address the preferred dividends.

Research

Mon, 10 Jul 2017 14:36:03 GMT

Nn Inc. (NMS:NNBR) ($27.45) - announced this morning it has entered into a definitive agreement to sell its Precision Bearing Components Group ("PBC") to Tsubaki Nakashima Co., Ltd. ("Tsubaki Nakashima"), for $375 million in cash. The transaction is expected to be completed in the second half of 2017, and is subject to regulatory and customary closing conditions. Management commented:

"...This transaction further balances our portfolio and provides us with the capital to execute on our strategic expansion into the higher-growth, medical and aerospace end markets. Importantly, we will also strengthen our balance sheet and will now have the additional flexibility through cash on hand to make strategic acquisitions in markets that we believe have strong growth potential"

We plan on listening to the call today. Our initial concern is that this asset accounted for about 30% of revenue, but it’s unclear if the entity was making or losing money on its own. The company has a substantial debt load of about $820M compared to the $138.31M in EBITDA it did over the last year. The sale of this asset is probably to help the company deal with some of its leverage in a rising rate environment.

Comments & Business Outlook

Wed, 04 Nov 2015 05:00:00 GMT

Third Quarter 2015 Results

Net sales for the third quarter of 2015 increased $29.2 million, or 23% to $154.8 million, compared to $125.6 million for the third quarter of 2014. Acquisitions added $41.6 million in revenue. Negative currency impacts reduced reported net sales by $7.8 million versus the third quarter of last year.
Adjusted net income, which excludes the after-tax impact of foreign exchange on inter-company loans and after-tax acquisition and integration expenses, increased to $8.3 million, or $0.31 per diluted share, compared to $6.3 million, or $0.34 per diluted share for the same period in 2014.

Richard Holder, President and Chief Executive Officer, commented, "The third quarter presented a series of challenges in the broader economy that impacted our sales during the quarter. Despite these headwinds we began to see the impact of the NN Operating System as we were able to appropriately manage our business in a rapidly changing environment and deliver strong operating performance."

Guidance

Holder continued, "As previously committed, beginning with the fourth quarter we will initiate a more comprehensive set of financial guidance designed to help our shareholders have the appropriate information to accurately evaluate our performance. This will include sales, adjusted EBITDA, adjusted operating margin, and adjusted earnings per share. With the completion of the PEP acquisition we will also begin excluding non-cash amortization charges from our adjusted earnings per share. We believe removing these charges provides the shareholder with the best evaluation of the Company's performance."

Comments & Business Outlook

Thu, 29 Oct 2015 17:05:09 GMT

JOHNSON CITY, Tenn., Oct. 29, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced that it is expanding its North American manufacturing footprint by opening a new precision ball plant in Ciudad Juarez in the Mexican state of Chihuahua in response to increasing demand and growth in auto manufacturing in Mexico. The plant, which has been under construction since June of this year, is expected to commence production in November, 2015. The plant will be co-located with NN's existing precision metal components plant in Juarez and will share management, supply chain, and administrative services.

Rich Holder, NN's President and CEO commented, "I am pleased to announce NN's expansion in Mexico, which is a growing market for automotive and industrial manufacturing. This new plant will serve existing and new customers and represents incremental demand created with the expansion of the Mexican automotive market. The rapid construction of this new plant was made possible by NN's existing presence in Mexico and showcases our ability to leverage our assets across multiple platforms. The plant will implement the next generation NN operating system complete with advanced 'in house developed' manufacturing technology from the NN R&D centers in the U.S. and Italy."

The plant will operate under the IMMEX Program (formerly the Maquiladora Program).

The plant is expected to have capacity to produce nearly 200 million tight-tolerance, high precision steel balls within 2016, with additional room to expand in the future. Production will ramp through 2016 as production validation continues.

Acquisition Activity

Tue, 20 Oct 2015 13:00:51 GMT

JOHNSON CITY, Tenn., Oct. 20, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced that the Company has successfully completed its acquisition of Precision Engineered Products Holdings, Inc. (PEP), a global manufacturer of highly engineered precision customized solutions serving the medical, electrical, transportation and aerospace end markets.

Richard Holder, President and CEO commented, "The acquisition of PEP, the largest in NN's 35 year history, is a transformational milestone that expands our market segment reach, broadens our portfolio of products, services, and solutions, as well as expands margins and strengthens our global geographic footprint."

"PEP adds proven capabilities in medical, electrical, transportation and aerospace to NN's strengths in light auto, CAFE technologies, general industrial, commercial transportation and fluid power," Holder said. "These complementary technologies further accelerate NN's growth as a diversified industrial focused on delivering a complete portfolio of world class products and solutions to our customers and being a consistent earner through the economic cycle."

NN, Inc., a diversified industrial company, manufactures and supplies high precision metal bearing components, industrial plastic and rubber products and precision metal components to a variety of markets on a global basis. Headquartered in Johnson City, Tennessee, NN has 43 manufacturing plants in North America, Western Europe, Eastern Europe, South America and China.

Acquisition Activity

Tue, 18 Aug 2015 15:09:09 GMT

JOHNSON CITY, Tenn., Aug. 17, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced that it has entered into a definitive agreement to acquire Precision Engineered Products Holdings, Inc. (P.E.P.) for $615 million in cash. The transaction is expected to be immediately accretive to earnings. The Company anticipates that the transaction will close by the end of October, 2015, subject to customary closing conditions and regulatory approval. NN was advised on the transaction by KeyBanc Capital Markets, Inc.

P.E.P. is a global manufacturer of highly engineered precision customized solutions serving the medical, electrical, transportation and aerospace end markets. P.E.P. has built a highly respected brand on which customers rely to solve their most difficult problems across diversified end markets. P.E.P.'s net sales for the last twelve months ending June 30, 2015, including acquisitions, were$245.3 million, with approximately $180.0 million coming from the medical and electrical businesses.

Richard Holder, President and CEO commented, "The addition of the P.E.P. business into our portfolio is a transformative step in creating a diversified industrial company that serves a variety of end markets and delivers consistent results through the economic cycle. P.E.P. strengthens our technical capabilities and provides us with additional dynamic platforms to support outgrowth of our end markets. P.E.P.'s focus on the medical, electrical, and aerospace end markets and delivery of world class precision and technology to their customers aligns perfectly with our strategic plan. Utilizing the NN Operating System, P.E.P. will have the tools and resources to continue to develop new products and drive operational efficiency in the years to come. We look forward to welcoming the P.E.P. team into the NN family."

NN expects to finance the transaction primarily with available cash and the issuance of debt from new fully committed credit facilities.

Comments & Business Outlook

Thu, 06 Aug 2015 16:26:24 GMT

NNBR ($21.63) announced Q2 2015 financial results:

Sales of $164.9 million vs $106.7 million in the prior year and slightly below analyst estimates of $166.8 million
Non-GAAP EPS of $0.37 vs $0.33 in the prior year and ahead of analyst estimates of $0.35.

Quotes from management included:

“Excluding the macro-economic challenges in Brazil our businesses along with our financial results continue to meet our expectations for the year. Our adjusted income from operations continued to improve during the quarter as the remainder of our portfolio continues to grow and hit our operating targets. The acquisitions we've made since 2014 remain on or ahead of our stated integration and synergy targets for 2015…

...The second quarter was an important quarter in the history of our company. We made our first acquisition in our plastics portfolio and raised $182 million in equity to prepare for future acquisitions and continued growth as we remain focused on executing our strategic plan."

We have successfully been in and out of shares on a number of occasions, most recently buying the dips on what we felt were unwarranted sell offs on recent earnings releases. We currently have no position but are maintaining NNBR as a GeoBargain due to its long term strategic growth plan to become a $1+ billion revenue company by 2018. NNBR expects to grow revenue by 270% and EPS 400% over its “strategic plan years” (2013 to 2018). We will be on this mornings conference call to determine if there are any changes to the long term strategic growth plan.

Research

Thu, 25 Jun 2015 15:22:50 GMT

Maintaining NNBR as a GeoBargain

We have successfully been in and out of GeoBargain NNBR ($24.49) on a number of occasions. Our most recent trade was buying the dip on Q4 2014 results, where we stated we felt the 30% selloff (to about $20.00) was overdone. On April 1, 2015 we closed our our long position at $25.00, but maintained NNBR as a GeoBargain rating based on the company’s strategic growth prospects. We are beginning to look at shares for possible re-entry due to recent weakness. Prior to yesterday's bounce, shares of GeoBargain NNBR have been hit hard the past week falling from $30.00 to lows of $22.00 in a matter of 3 days. On June 18, 2015 the company revised its full year revenue outlook:

“revising its 2015 revenue guidance from the previously provided range of $670 - $690 million dollars as a result of continued weakness in the Brazilian economy. The company now expects 2015 revenue to be between $660 - $670 million dollars.”

On June 22, 2015 the company announced a public offering of 6 million shares. The terms of the deal have yet to be disclosed.

“NN intends to use the net proceeds from the offering to repay debt under its term loan and asset-backed revolving credit facility, and the remainder of the net proceeds will be used for other general corporate purposes, including to fund acquisitions and investments, to finance capital expenditures, to repay or refinance other borrowings and to provide working capital.”

The company maintained its long term strategic growth targets, and plans to become a $1+ billion revenue company by 2018. NNBR expects to grow revenue 270% and EPS 400% over its “strategic plan years” (2013 to 2018). We need determine if the dilution from the recent offering will change the company’s EPS growth goal and what the terms of the offering will be.

Comments & Business Outlook

Tue, 23 Jun 2015 15:34:04 GMT

JOHNSON CITY, Tenn., June 18, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced it is revising its 2015 revenue guidance from the previously provided range of $670 - $690 million dollars as a result of continued weakness in the Brazilian economy. The company now expects 2015 revenue to be between $660 - $670 million dollars.

During 2014, NN and its acquired companies sold approximately $47 million into Brazil. The company now expects 2015 revenue in Brazil to be off the planned $52 million by approximately 38% - 40% based on new estimates showing Brazil's GDP will contract 2% in 2015 along with the reduction in automotive build and sales estimates in the country.

NN's 2015 revenue in North America, Europe and Asia remain at or near the guidance levels previously provided. NN continues to reaffirm its 2018 strategic targets.

Richard Holder, President and CEO commented, "While our team did a great job in the first quarter managing our Brazilian business, the economic challenges continue to persist. Light vehicle sales in Brazil were 20% lower through May and are expected to be 30% lower in the coming months compared to the last several years, which have pushed OEM inventories higher than normal. While this economic struggle is disappointing, we remain committed to the Brazilian market and believe our competitive position in the country will provide us a significant advantage in the future. Excluding Brazil, the remainder of our businesses around the globe continue to perform in line with our expectations and we remain committed to achieving our 2018 strategic plan and targets."

Direct Public Offering

Tue, 23 Jun 2015 15:33:01 GMT

JOHNSON CITY, Tenn., June 22, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced that it is commencing an underwritten registered public offering of 6,000,000 shares of its common stock. In connection with this offering, NN expects to grant the underwriters a 30-day option to purchase up to an additional 900,000 shares. There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

NN intends to use the net proceeds from the offering to repay debt under its term loan and asset-backed revolving credit facility, and the remainder of the net proceeds will be used for other general corporate purposes, including to fund acquisitions and investments, to finance capital expenditures, to repay or refinance other borrowings and to provide working capital..

KeyBanc Capital Markets Inc. is acting as sole book-running manager for the offering and William Blair & Company, L.L.C., Stephens Inc., Stifel, Nicholaus, & Company, Incorporated, Avondale Partners, LLC, CJS Securities, Inc. and Regions Securities LLC are acting as co-managers.

Comments & Business Outlook

Thu, 07 May 2015 04:00:00 GMT

Reported Q1 2015 results:

Q1 2015 revenues of $163.7 million vs $102.5 million in the prior year and slightly below analyst estimates of $164.1 million.
Q1 2015 EPS of $0.36 vs $0.31 in the prior year and ahead of analyst estimates of $0.34

Comments from managment:

Richard Holder, President and Chief Executive Officer, commented, "Our first quarter results are in line with our expectations and provide a solid start to the year. The four acquisitions made in 2014 remain ahead of our stated integration and synergy targets for 2015. "

Research

Thu, 02 Apr 2015 04:00:00 GMT

Sold our long position in NNBR

$NNBR ($25.25) - GeoBargain NNBR manufactures and sells metal bearing, plastic and rubber, and precision metal components for bearing, automotive, and industrial parts manufacturers worldwide.

On 11/3/2014 we stated we were buying NNBR pre Q3 earnings. (shares were $25.00)
On 11/5/2014 and 11/6/2014, via tweets and email, we stated we were buying NNBR on the dip as shares pulled back despite the company reporting strong Q3 financials and increasing its 2014 guidance. (shares were $22.00)
Shares rebounded, reaching a high of $28.49 on 3/2/2015
On 3/11/2015 we stated we were adding to our long position as we felt the drop of near 30% on Q4 2014 results was overdone. (shares dipped to low $19.00 area)
Shares once again rebounded, reaching current levels of $25.00.
We have now closed out our long position, but will look to re-buy on dips.
NNBR will remain a GeoBargain, as we feel the long term story is still intact. The company’s strategic plan is to become a $1+ billion revenue company by 2018. NNBR expects to grow revenue 270% and EPS 400% over its “strategic plan years” (2013 to 2018), translating into near $5.00 per share in EPS by 2018 (projected EPS does not factor in any possible dilution).

Research

Wed, 18 Mar 2015 04:00:00 GMT

$NNBR ($21.11) - GeoBargain NNBR released an investor presentation via 8-K this morning. The presentation outlines the company’s strategic plan of becoming a $1+ billion revenue company by 2018. NNBR expects to grow revenue 270% and EPS 400% over its “strategic plan years” (2013 to 2018), translating into near $5.00 per share in EPS by 2018 (projected EPS does not factor in any possible dilution). This echoes the sentiment from the investor presentation release in early February at the company’s investor & analyst day in New York City. While it seems the weak Euro has impacted current results slightly, management looks confident in maintaining its long term bullish growth outlook. Recall, on March 11, 2015 we stated we were adding to our long position as we felt the drop of near 30% on Q4 2014 results was overdone. Shares have begun to rebound off the lows of around $19.30 at that time.

Research

Thu, 12 Mar 2015 04:00:00 GMT

Weak Euro Affecting GeoBargain NNBR and MNTX

Although both MNTX and NNBR will be impacted by a weaker Euro, the market seems to be ignoring the positive effect QE in Europe could have on respective operations . Thus, we still like both these companies at current levels, but have to concede that shares may not be as timely options as we would like.

Yesterday, via premium tweet, we stated:

“Believe yesterday's drop in $NNBR of 30% is overdone, as was the case on Q3 2014 numbers before recovering to previous highs.”

Our tweet from November 6, 2014:

“Our newest GeoBargain is $NNBR. We are long. Pull back on Q3 results was, and continues to be, a gift.”

The stock was trading at around $21 at this time and recovered to near $28 prior to Q4 earnings. We believe shares dropped due the company’s forecasted 2015 foreign currency adjusted revenue of $670 million to $690 million, which are negatively impacted by weakness in the Euro vs the Dollar. Analyst estimates were around $708 million before being adjusted to $690 million. We believe the near 30% selloff in shares is overdone given analyst adjusted revenue estimates and the company’s revenue guidance is roughly 3% off prior estimates. EPS estimates also decreased to $1.91 from $2.10, and while certainly not a positive event, it is not an event that should call for a 30% decline in the stock, especially given that 2015 sales and EPS are still expected to grow 41% and 48%, respectively. We believe shares will once again eventually recover, but that some volatility in shares could ensue until the decline in the Euro stabilizes.

In MNTX’s case, the company acquired PM Group S.p.A. ("PM") in January. MNTX reported that PM generated around $100 million revenue and $9+ million EBITDA (based on EBITDA % in line with MNTX’s) in 2014. Many used PM’s estimated revenue and EBITDA for 2014 in US dollar terms as the basis for projecting its operating results in 2015 and beyond. The 2014 estimate, however, was based on a Euro exchange rate of $1.35 which indicates PM generated around 74 million Euros revenues and 7 million Euros EBITDA. If we translate PM’s Euro denominated operating results back to US $ at the current exchange rate of $1.06, the US $ equivalents become revenues of approximately $78 million and EBITDA of $7.4 million, or around $22 million less US $ denominated revenue and $1.6 million less EBITDA. We do not think investors should judge MNTX and its acquisition of PM based on what could prove to be a temporary plunge in the value of the Euro. The real issue is whether PM is a solid and growing business in local currency terms and we believe it is.

In terms of GeoPowerRanking (GPR), NNBR is strong at 4, where MNTX had carried a GPR of 8 just 6 days ago, however, strong EPS comps are now not expected until Q3 2015 where MNTX will have a GPR of 6.

Research

Thu, 06 Nov 2014 05:00:00 GMT

Call to Action: NN Inc (NNBR) - Added some shares in yesterday’s session.

Over the last 2 days we mentioned we are buying NNBR as shares pulled back despite the company reporting strong Q3 financials and increasing its 2014 guidance. We believe the company's exposure to Europe where recovery from global recession has been slow has turned some investors away from NNBR. However, it’s important to note that the company has been growing despite Europe, once Europe improves the company should see an additional catalyst for growth and offer upside to analyst estimates.

The following commentary from the Q3 conference call sums it up best:

“We experienced the normal expected European seasonal decline in Europe in the third quarter. Sales in Europe were down versus the first half, also due to lower heavy truck sales, which Rich will comment on in a moment. And this is also combined with a continued slow, but still recovering business in auto and industrial sales in Europe. Europe continued -- does continue to improve but at a fairly slow pace. Despite this, all of our European operations are still performing quite well. Adjusted income from operations was up 9.5% versus last year on the 4% increase in sales. So you can see that we have maintained as promised, good incremental profitability on the higher sales, combined with good cost control, which led to the earnings improvement...
...In total, we remain ahead of plan for the year, but we expect the fourth quarter will see slower growth in Europe and Asia, and will be down due to the currency numbers I just mentioned.”

In related news, Nomura raised NNBR price target to $31.30 from $27.

Research

Fri, 27 Aug 2010 04:00:00 GMT

Earlier today, we began tracking NNBR due to:

Bullish commentary in its financial press release issued on August 11, 2010.

"For the second half of the year, we are forecasting continued strong customer demand for our products. Traditionally, in terms of revenues, our third quarter is our weakest quarter due to seasonality factors. Historically, our third quarter has been down sequentially versus the second quarter in a range of 8% to 10%. However, based on continued strong customer demand, we are anticipating a third quarter with sales only slightly down from second quarter levels with continuing good demand through the end of the year. We therefore are revising our previous guidance of $315 million to $335 million in revenues to a range of $350 million to $360 million in revenues for the full 2010 year. The midpoint of our guidance reflects the assumption that during the second half of 2010 we will see revenues in line with our experience during the first half of the year. We are encouraged by the pace of the recovery and the significant improvement we have experienced in profitability and corresponding cash flows during the first half of 2010. We look forward to the last half of 2010 with some level of confidence that the global economic recovery will continue to provide a level of demand that will return NN to solid levels of profitability moving forward."

EPS Estimates that point to some strong growth for the back half of 2010, where the company is expected to report EPS of $0.34 compared to a loss in EPS of $(0.53) in the same period in 2009.
At $7.30, the stock has pulled back from a recent high of $8.42, which could give investors a chance to enter a stock that is selling at a P/E of 10 on 2010 EPS estimates of $0.73.

Please note that EPS comparisons will become more challenging starting in the second half of 2011.