NAUGATUCK, Conn.--(BUSINESS WIRE)--July 27, 2005--The Eastern
Company (AMEX:EML) today announced the results of its operations for
the second quarter and six months of 2005. Sales for the quarter were
$27.4 million, compared to $25.3 million for the same period in 2004,
an 8% increase, while net income was $1.1 million, or $0.28 per
diluted share, compared to the $761,000, or $0.20 per diluted share,
reported in the second quarter of 2004, a 42% increase.
Net sales for the six months were $53.7 million compared to $49.9
million for the first six months of the previous year, an 8% increase.
Year to date earnings for the six-month period ended July 2, 2005 were
$1.8 million or $0.47 per diluted share, compared to $1.8 million or
$0.49 per diluted share for the same period in 2004.
Leonard F. Leganza, President and CEO stated, "We are pleased with
the results of the second quarter and particularly those of our
Industrial Hardware Group where we experienced a 23% increase in sales
for the second quarter and 21% for the six month period as compared to
the same periods a year ago. Continued strength in the vehicular and
industrial hardware markets, coupled with a resurgence in demand for
product supplied to subcontractors for military vehicles, were
important factors leading to the positive performance of the group. We
anticipate strong results from this group for the balance of the year.
Mr. Leganza continued, "Despite a reduced demand in the sales of
locks to the computer industry, sales in our Security Products Group
did increase 5% in the second quarter as compared to the second
quarter of 2004. Our SearchAlert(TM) luggage locks continued to
reflect strong demand, and sales of our smart card products to the
commercial laundry industry also increased."
Mr. Leganza commented further, "Our Metal Products Group second
quarter sales revenues were off 30% as compared to the second quarter
of 2004. We will continue to evaluate our various options, which
include the introduction of our proprietary mine roof support anchors
in underground coal mines in China."
Mr. Leganza also stated, "The Company will continue to invest in
its Asian Operations to fulfill our objective of developing a market
for our products in Asia despite the recent revaluation policies with
respect to the Chinese yuan."
The Eastern Company is a 147-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.
Statement of Consolidated Income (unaudited)
THE EASTERN COMPANY (AMEX - EML)
THREE Months Ended SIX Months Ended
13 wks 13 wks 26 wks 26 wks
July 2, 2005 July 3, 2004 July 2, 2005 July 3, 2004
------------ ------------ ------------ ------------
Net Sales $27,421,294 $25,297,964 $53,688,878 $49,863,172
Net Income $1,083,389 $760,726 $1,813,971 $1,837,099
Net Income Per
Basic $0.30 $0.21 $0.50 $0.51
Diluted $0.28 $0.20 $0.47 $0.49
Basic 3,636,100 3,628,818 3,635,546 3,622,926
Diluted 3,885,059 3,738,306 3,876,236 3,726,021
CONTACT: The Eastern Company
Leonard F. Leganza or John L. Sullivan III
SOURCE: The Eastern Company