NAUGATUCK, Conn.--(BUSINESS WIRE)--July 13, 2000--The Eastern Company (AMEX:EML) today reported continued increases in both sales and net earnings for the second quarter of this year. Net income for this period was $1.7 million or $.47 per basic share compared to $1.6 million or $.44 per basic share for the same quarter in 1999. Net sales for the second quarter were $20.3 million compared to $20.0 million for the same period in the previous year.
Year-to-date earnings for the six-month period ended July 1 were $3.2 million or $.88 per basic share, compared to $3.0 million or $.84 per basic share for the same period in 1999. Net sales for six months were $40.5 million compared to $39.4 million for the first six months of the previous year.
Leonard F. Leganza, President and CEO, stated, "In addition to the record sales that we are reporting for the second quarter, this is our 14th consecutive quarterly earnings per share increase as compared to the same quarter of the previous year. One particular highlight for this solid performance has been the continued market strength at our Eberhard divisions in Ohio and Canada. Eberhard is a leading designer and producer of hardware for a variety of industrial and transportation end users. This segment of our company has been strengthened further by the recent acquisitions of Ashtabula Industrial Hardware as well as the acquisition of some complimentary product lines from Hansen International."
"The recent announcement of the purchase of Greenwald Industries, Inc. and Greenwald Intellicard, Inc. from PubliCARD, Inc. affords us with some new and challenging opportunities. Greenwald has long been a market leader in mechanical coin handling systems which predominately serve the commercial laundry industry. The Intellicard product line, which develops and manufactures smart card solutions, is a new and fast-growing technology which may create new marketing opportunities."
Mr. Leganza concluded, "Incoming orders and backlogs remain strong for most of our product lines and the year 2000 continues to look favorable."
The Eastern Company manufactures and markets a broad range of locks, latches, fasteners and other security hardware that meets diverse security and safety needs of industrial and commercial customers. Headquartered in Naugatuck, CT, the Company has eight manufacturing locations in the U.S.A., Canada, Mexico and the Pacific Rim.
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
July 1, 2000 July 3, 1999 July 1, 2000 July 3, 1999
Net Sales $20,324,617 $20,029,666 $40,539,036 $39,413,320
After Tax 1,695,468 1,577,909 3,203,930 3,040,656
Basic $0.47 $0.44 $0.88 $0.84
Diluted $0.46 $0.42 $0.87 $0.81
Basic 3,617,873 3,621,688 3,626,166 3,621,911
Diluted 3,646,295 3,739,512 3,681,923 3,744,834
CONTACT: The Eastern Company
Leonard F. Leganza, President/C.E.O.
203/729-2255, Ext. 105
John L. Sullivan III, Vice President/Treasurer
203/729-2255. Ext. 110