The Eastern Company Reports Results for the Fourth Quarter and Twelve Months of 2009
09 Fevereiro 2010 - 8:22PM
Business Wire
The Eastern Company (NYSE Amex-EML) today announced the results
of its operations for the fourth quarter and twelve months of 2009.
Sales for the quarter were $28.0 million, compared to $32.3 million
for the same period in 2008, a 13% decrease. Net income for the
fourth quarter was $369,000 or $0.06 per diluted share compared to
the $1.1 million or $0.17 per diluted share that was reported in
the fourth quarter of 2008.
Net sales for the twelve months of 2009 were $112.7 million
compared to $135.9 million in 2008, a 17% decrease. Net income for
2009 was $1.0 million or $0.17 per diluted share, compared to $4.5
million or $0.73 per diluted share for the same period in 2008.
Leonard F. Leganza, Chairman, President and CEO stated,
“Earnings in the fourth quarter were adversely affected by a charge
of $967,000 to conclude an interest rate “SWAP” contract related to
our long-term debt arrangement with Bank of America. It was
necessary for the Company to make that payment as part of
restructuring the company’s credit facility. In January 2010, the
Company replaced Bank of America as its lender and entered into a
new banking relationship with People’s United Bank. Our new debt
arrangement and credit facilities provide us with greater
flexibility, lower financing costs and will be more beneficial
towards working at our primary goal of enhancing shareholder
value.”
Mr. Leganza, continued, “Sales held steady in the fourth quarter
and were comparable to the sales reported in previous quarters of
2009. This indicated, we believe, to some degree that the economy
is leveling off in the many market areas we serve and some
indication that those markets might be improving. Our Canadian
Commercial Vehicles subsidiary increased its shipments of Sleeper
Cabs for both commercial and military Class 8 heavy trucks with
additional shipments anticipated during 2010. We are also pleased
with the progress that unit has made in developing composite panels
now manufactured and being used in the construction of local
delivery vans where the lighter weight of the vehicles reduces fuel
consumption. In that regard, we have established a subsidiary in
Mexico, “Composite Panels Technologies” devoted solely to the
development of this new product and promising market. In addition
to commercial vehicles, our goal is to introduce the product into
new markets where those panels will be applicable.”
Mr. Leganza also stated, “Our Greenwald Industries division has
developed and will be introducing several new advanced technology
products into the commercial laundry and various other markets
during the first half of 2010. These advanced coin recognition
systems and contactless and wireless cash payment systems will open
up several new sectors in the coin vending and metering
industry.”
Mr. Leganza continued, “Our Frazer & Jones Division has
experienced strong demand for its proprietary mine roof products.
This increased demand has helped to stabilize the future of this
operation and we intend to invest approximately $2.5 million in a
capital equipment improvement plan to upgrade equipment where
necessary in order to produce the highest level of quality products
and meet all the expectations of our global customers.”
Mr. Leganza concluded, “Despite the turmoil in the economy
affecting our businesses and the resulting uncertainties in the
stock markets, we remain very positive about our future and will
continue to invest in the development of new products and the
capital needs of our operating units in order to maintain our
competitive edge in the marketplace. On December 15, 2009 the
Company proudly paid its 277th consecutive quarterly dividend.”
The Eastern Company is a 151-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 (NYSE Amex - EML) THREE Months
Ended TWELVE Months Ended
13 wks 14 wks 52
wks 53 wks Jan 2, 2010 Jan
3, 2009 Jan 2, 2010 Jan 3,
2009 Net Sales
$ 28,014,270 $
32,309,962 $ 112,665,464 $
135,878,490 Net Income After Tax
$
369,178 $ 1,068,204 $ 1,036,407
$ 4,504,623 Net Income Per Share: Basic
$ 0.06 $ 0.18 $ 0.17
$ 0.77 Diluted
$ 0.06 $
0.17 $ 0.17 $ 0.73
Weighted averageshares
outstandings:
Basic
6,017,708 5,964,813 5,985,640
5,875,140 Diluted
6,177,192 6,130,805
6,241,780 6,159,563
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