The Eastern Company Reports Results for the Third Quarter and Nine Months of 2008
22 Octobre 2008 - 5:48PM
Business Wire
The Eastern Company (AMEX-EML) today announced the results of its
operations for the third quarter and nine months of 2008. Sales for
the quarter were $34.6 million, compared to $36.0 million for the
same period in 2007, a 4% decrease. Net income for the third
quarter was $875 thousand or $0.14 per diluted share compared to
the $1.7 million, or $0.29 per diluted share that was reported in
the third quarter 2007. Net sales for the nine months of 2008 were
$103.6 million compared to $122.5 million for the first nine months
of the previous year. Sales in the 2007 period included $18.1
million of latching system sales for use in the military�s
up-armored Humvee program under a one-time limited contract. �Core�
business sales for the nine months of 2007 therefore were $104.4
million. Year to date earnings for the nine month period ended
September 27, 2008 were $3.4 million or $0.56 per diluted share,
compared to $9.2 million or $1.54 per diluted share for the same
period in 2007. Leonard F. Leganza, Chairman, President and CEO
stated, �The extremely higher costs of metals, which we use a great
deal of, as well as other raw materials and energy, all had a
downward impact on our operating earnings. Many of these increases
outpaced our ability to pass the increases on to our customers in a
timely manner. We anticipate these costs should level off in the
near future. The slow down and unpredictability of the general
economy also made the third quarter a challenging one, particularly
in view of our diversity and participation in several markets.� Mr.
Leganza also stated, �The Frazer & Jones Division had to
contend with the severe impact caused by the rising costs of scrap
steel and energy, both critical to that operation. However, higher
global fuel costs has increased the world wide demand for coal
resulting in a 45% increase in Frazer & Jones sales of our
proprietary mine roof support anchors. Our Eberhard Division
continues to receive orders for latching systems and other hardware
used in military vehicles with initial shipments of those orders
beginning in the fourth quarter of 2008 and into 2009.� Mr. Leganza
continued, �As we stated in our second quarter news release, the
Class 8 truck market has experienced a significant downturn and
current projections are that market will remain relatively flat
through the third quarter of 2009. Overall, sales of products to
the Class 8 truck market are down for the first nine months of
2008, as compared to the same period in 2007. However, our Canadian
Commercial Vehicle subsidiary continues to expand the marketing and
sale of their lightweight honeycomb composite technology to be used
in other markets. This should lessen our dependence on the Class 8
truck market.� Mr. Leganza continued further, �Our Security
Products Group is also feeling the effects of the economic slow
down in some of the market segments they serve. Airline and other
leisure travel have had a downward impact on the luggage industry
which we serve, while housing and credit conditions have affected
the products we offer the appliance industry. In addition, our
security group has had to contend with Asian suppliers passing on
price increases related to raw materials as well as foreign
exchange rate increases, reducing our margins.� Mr. Leganza
concluded, �As always, we are confident we will overcome these
challenges as we move forward and we continue to expend efforts to
enhance shareholder value.� The Eastern Company is a 150-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 is 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. Statement of Consolidated
Income (unaudited) � � � � � THE EASTERN COMPANY (AMEX - EML) � � �
THREE Months Ended NINE Months Ended � 13 wks 13 wks 39 wks 39 wks
Sept. 27, 2008 Sept. 29, 2007 Sept. 27, 2008 Sept. 29, 2007 Net
Sales $ 34,550,899 $ 36,027,712 $ 103,568,528 $ 122,520,357 � � Net
Income After Tax $ 875,041 $ 1,706,642 $ 3,436,419 $ 9,193,236 � �
Net Income Per Share: Basic $ 0.15 $ 0.30 $ 0.59 $ 1.64 Diluted $
0.14 $ 0.29 $ 0.56 $ 1.54 � Weighted average shares outstandings:
Basic 5,881,284 5,669,274 5,842,948 5,589,905 Diluted 6,189,149
5,942,529 6,166,849 5,974,234
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