Special Report : Supplier Targets Industrial, Export Markets

Financial analysts have often called National Mine Service Co. the only "pure play" company to the mining industry, meaning that an investment in NMS is an investment in the mining industry. As a leading manufacturer and supplier to the industry, National Mine Service does enjoy a close and direct relationship with mining. It is the only independent company that offers products and services that include mining machinery, health, safety, instrumentation, mine supplies, and reconditioning services for hydraulics, electronics, and machinery. But what is a positive relationship in periods of economic upturn can be eauallv as negative during the downturns. In fact, National Mine Service has felt the resounding blows of the current recession in the mining industry. Two-Fold Strategy Rising unemployment, corporate losses, bankruptcies, and mine closings in particular have directly affected NMS. But the company embarked on a strategy several years ago that included a two-fold approach to becoming less dependent upon the vagaries of the US coal industry. One strategy was to develop additional products and services for other mineral industries such as potash, trona, and salt and, where possible, apply the technology developed for the mining industry to industrial markets. The other strategy was to become a more international company. The objective was to make export sales a minimum of 10% of total corporate sales. Even today, NMS believes this is a good strategy as opposed to diversifying because its expertise is in mining, not in other areas. A review of NMS's fiscal 1982 annual report indicates that the company's strategy did begin to pay off. 1982 was a turnaround