Message #7 From:
NewsBot Date: October 25, 2006 08:10:00 AM
EML News The Eastern Company Reports Results for the Third Quarter and Nine Months of 2006
NAUGATUCK, Conn.--(BUSINESS WIRE)--The Eastern Company (AMEX-EML) today announced the results of its
operations for the third quarter and nine months of 2006. All per share
data reflects the impact of the three-for-two stock split announced on
September 28, 2006. Sales for the third quarter were $31.2 million,
compared to $27.2 million for the same period in 2005, a 15% increase,
while net income was $1.7 million, or $0.28 per diluted share, compared
to the $1.3 million, or $0.21 per diluted share, reported in the second
quarter of 2005, a 33% increase.
Net sales for the nine months were $88.7 million compared to $80.9
million for the first nine months of the previous year, a 10% increase.
Year to date earnings for the nine month period ended September 30, 2006
were $4.0 million or $0.69 per diluted share, compared to $3.1 million
or $0.53 per diluted share for the same period in 2005, a 31% increase.
Both the quarter and nine month results reflect favorable tax provision
adjustments of approximately $0.06 per diluted share.
Leonard F. Leganza, President and CEO stated, “Our
sales increase in the third quarter was the sixteenth consecutive
quarter of improved year-to-year sales, a trend that should continue
into 2007. In September, the Industrial Hardware segment received orders
from a military contractor for door latching components to be used in a
project to retro-fit military Humvees which should result in an
additional $31.5 million in sales between September 2006 and March of
2007.”
Mr. Leganza added, “Also, toward the end of
the third quarter, the Security Products segment of the Company
completed the acquisition of the Royal Lock Corporation. That
acquisition will expand our product range and provide a stronger market
presence for that segment of our business. Royal Lock is a supplier of
cam locks, switch locks, padlocks, latches, handles and specialty
hardware parts. Its products are sold to numerous OEM's in several
market segments, including automotive, recreational vehicles and
furniture as well as to electronics and fabricated metal parts
producers. Royal Lock's capabilities provide customized solutions to an
unlimited range of lock and specialty part requirements.”
Mr. Leganza continued, “We are encouraged that
sales at our Metal Products segment continue to improve, however,
productivity in this segment fell far short of our anticipated goals in
the third quarter. The installation of new metal pouring systems, which
will improve the efficiency and productivity in manufacturing ductile
iron castings, took longer to implement and encountered factors that we
had not expected. The installation has now been completed, is operating
reliably and improvements in our production efficiency should now begin
to be realized. During the third quarter charges to earnings resulted in
a loss of approximately $0.11 per diluted share.”
Mr. Leganza concluded, “As I stated earlier
this year, we continue to be optimistic about our current and future
opportunities and results despite the escalating costs of raw materials,
utilities and health care presently being experienced. Our optimism is
reflected in the 9% dividend increase announced in April of this year
and the three-for-two stock split announced in September 2006.”
The Eastern Company is a 148-year-old manufacturer of industrial
hardware, security products and metal castings. It operates from nine
locations in the U.S., Canada, Mexico, Taiwan and China. The diversity
of the Company’s products helps it to respond
to the changing requirements of a broad array of markets.
Forward-Looking Statements:
Information in this news release contains statements which reflect the
Company’s current expectations regarding its
future operating performance and achievements. Actual results may differ
due to the many economic uncertainties that affect the Company’s
business environment. Further information about the potential factors
which could affect the Company’s financial
results are included in the Company’s reports
and filings with the Securities and Exchange Commission. The Company is
not obligated to update or revise the aforementioned statements for
those new developments.
