NAUGATUCK, Conn.--(BUSINESS WIRE)--Jan. 10, 2000--The Eastern Company (AMEX-EML) a leading manufacturer of vehicular and industrial hardware, locks, and other metal products, today announced that it expects to report strong 1999 fourth-quarter financial results. The Company anticipates that fourth-quarter net income will be approximately $1.8 million, or $.50 per basic share which will represent a 25 percent gain over last year's fourth quarter net income of $1.4 million or $.40 per basic share. The Company expects that net income for the year 1999 will increase 20 percent to approximately $6.5 million or $1.80 per basic share, compared with net income of $5.4 million or $1.49 per basic share, for 1998.
Sales for the fourth quarter of 1999 are expected to be in the range of $17 million, compared to $16.9 million in 1998. Sales for the full year 1999 should be approximately $75 million, which represents an increase of 6 percent over sales of $70.7 million in 1998.
Leonard F. Leganza, President and CEO stated, "The year 2000 should provide some interesting and challenging opportunities for The Eastern Company. We intend to expand our business activity in all of our core product lines. In addition, we will maintain our high commitment to searching out acquisitions and other alliances in certain targeted markets. We expect that our Eberhard Mfg. division, a leading producer of vehicular and industrial hardware, will show the most activity in both of these areas of growth initiatives." Leganza continued, "Incoming orders remain solid at most of our seven operating locations. Also important to recognize is that all of our three product segments serve a cross section of markets which are fundamental to the everyday needs of our society. As a result, we feel that 2000 will produce another outstanding year for Eastern in both sales and earnings."
Eastern's year-end earnings will be released around January 25, 2000.
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 seven 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 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.