The Eastern Company Reports an Increase in Revenue of 7% for the Second Quarter and 5% for the Six Months of 2015
30 July 2015 - 5:31AM
Business Wire
The Eastern Company (NASDAQ-EML) today announced the results of
its operations for the second quarter and six months of 2015. Sales
for the quarter were $37.0 million, compared to $34.8 million for
the same period in 2014, a 7% increase, while net income was
$585,000 or $0.09 per diluted share, compared to the $1.7 million
or $0.27 per diluted share, reported in the second quarter of
2014.
Net sales for the six months of 2015 were $73.9 million compared
to $70.6 million for the first six months of 2014, a 5% increase.
For the six month period ended July 4, 2015 net income was $1.5
million or $0.23 per diluted share, compared to $3.2 million or
$0.51 per diluted share for the same period in 2014.
Leonard F. Leganza, Chairman, President and CEO, stated, “Sales
for the second quarter increased 7% and 5% for first half of the
year primarily due to the Argo acquisition in December 2014. Our
new composite panel production facility located in North Carolina
is now in production manufacturing sleeper cabs for the Western
Star new Class 8 truck called the “Phantom.” The build rate in June
was 4 sleepers per day which has accelerated to a build rate of 10
sleepers per day in July and is anticipated to grow to 18 sleepers
per day in the fourth quarter of 2015. We expect to recoup all of
our start up costs and be accretive to earnings for the full
year.”
Mr. Leganza added, “Net income in the second quarter of 2015 and
the first half of 2015 were significantly down due to the one-time
expenses incurred during a Proxy Contest during the first half of
the year. The proxy contest expense had a negative impact on the
second quarter earnings of approximately ($0.14) per diluted share
and had a negative impact for the first half of 2015 of
approximately ($0.21) per diluted share. No further expenses
relating to the proxy contest are anticipated.”
Mr. Leganza continued, “Sales in the Security Products Segment
were up 24% in second quarter. Sales in the Metal Products segment
were down 11% in the second quarter and down 12% for the first half
of 2015 compared to the prior year periods. Continued softness in
the U.S. mining industry where mine closings in the Eastern
(Appalachian) region coal has been the major reason for the
decrease in sales in this segment. However, some of the decline in
the U.S. mining industry has been partially offset with increased
sales of mining products into the Canadian mining industry in the
second quarter and first half of 2015. To offset the softness in
the U.S. Mining industry we are working with our major mining
supply customers to expand mining product sales internationally.
Further, on the positive side, our contract casting sales increased
8% in the second quarter and 4% for the first half compared to the
same periods in the prior year and we are working with several new
customers on casting projects which should have a positive impact
in the second half of the year.
About the Company
The Eastern Company is a 157-year-old manufacturer of industrial
hardware, security products and metal castings. It operates from 13
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. More information
on the Company can be found at www.easterncompany.com
Safe Harbor for Forward-Looking
Statements
Statements in this document about the Company’s future
expectations, beliefs, goals, plans or prospects constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any statements that are
not statements of historical fact (including statements containing
the words “believes,” “plans,” “anticipates,” “expects,”
“estimates” and similar expressions) should also be considered to
be forward-looking statements. There are a number of important
factors that could cause actual results or events to differ
materially from those indicated by such forward-looking statements,
including those set forth in the Company’s reports and filings with
the U.S. Securities and Exchange Commission. The Company is not
obligated to update or revise any forward-looking statements as a
result of developments occurring after the date of this
document.
Statement of Consolidated Income
(unaudited) THE EASTERN COMPANY (NASDAQ
- EML) THREE Months Ended SIX Months Ended
13 wks 13 wks 26 wks 26 wks
July 4,2015
June 28, 2014 July 4,2015 June 28,
2014 Net Sales $ 37,037,697 $ 34,779,773 $ 73,914,539 $
70,628,899 Net Income $ 584,594 $ 1,693,503 $
1,458,545 $ 3,196,388 Net Income Per Share: Basic $
0.09 $ 0.27 $ 0.23 $ 0.51 Diluted $ 0.09 $ 0.27 $ 0.23 $ 0.51
Weighted average shares outstandings: Basic 6,244,451
6,222,676 6,244,250 6,222,444 Diluted 6,244,451 6,239,866 6,244,250
6,239,507
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version on businesswire.com: http://www.businesswire.com/news/home/20150729006609/en/
The Eastern CompanyLeonard F. Leganza or John L.
Sullivan III, 203-729-2255
Eastern (NASDAQ:EML)
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