NAUGATUCK, Conn.--(BUSINESS WIRE)--July 30, 2003--The Eastern
Company (AMEX:EML) today announced its operating results for the
second quarter. Second-quarter net income increased to $936,700, or
$.26 per diluted share compared to the $758,500 or $ .20 per diluted
share reported in the second quarter of 2002, a 23% increase. Sales
for the second quarter of 2003 increased slightly to $21.6 million,
compared to $21.3.
Year-to-date earnings for the six-month period ended June 28 were
$1.9 million or $.52 per diluted share, compared to $1.4 million or
$.38 per diluted share for the same period in 2002, a 32% increase.
Net sales for six months were $43.2 million compared to $41.6 million
for the first six months of the previous year, a 4% increase.
Leonard F. Leganza, President and CEO, stated, "While the
operating results for the quarter and year to date have been positive,
sales improvements have not been as robust as expected, an indication
that the economy has not yet improved significantly in our core niche
markets. Our profit margins have continued to remain strong as a
result of new product sales, and the addition of the Canadian
Commercial Vehicles subsidiary which produces "sleeper boxes" for
large trailer trucks."
Mr. Leganza continued, "Our presence in China has recently been
expanded with the establishment of Eastern Industries (Shanghai) Ltd.,
a manufacturing facility located in Shanghai, China. This subsidiary
will be instrumental in helping us remain price competitive in North
America and will open up the possibility to more effectively pursue
markets in Asia and elsewhere. In addition to producing fabricated
metal products, it will include plastic injection molding capability.
It will also serve as a sourcing center for non-competitive products."
The Eastern Company is a 145-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 enables 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 result
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
June 28, June 29, June 28, June 29,
2003 2002 2003 2002
Net Sales $21,591,111 $21,291,745 $43,181,825 $41,612,262
Net Income $936,688 $758,518 1,890,065 1,435,625
Net Income Per Share:
Basic $0.26 $0.21 $0.52 $0.40
Diluted $0.26 $0.20 $0.52 $0.38
Weighted average shares
Basic 3,625,310 3,630,586 3,627,807 3,629,931
Diluted 3,630,514 3,717,031 3,630,409 3,729,542
CONTACT: The Eastern Company
Leonard F. Leganza or John L. Sul livan III, 203-729-2255
SOURCE: The Eastern Company