The Eastern Company Announces Record Second Quarter Financial Results

The Eastern Company Announces Record Second Quarter Financial Results7/14/1998 The Eastern Company Announces Record Second Quarter Financial Results
(c) 1998 Business Wire | www.businesswire.com

BW0378  JUL 14,1998      13:47  PACIFIC      16:47  EASTERN

( BW)(EASTERN-COMPANY)(EML) The Eastern Company Announces Record Second Quarter Financial Results


    Business Editors

    NAUGATUCK, Conn.--(BUSINESS WIRE)--July 14, 1998--

    Net Income Growth May Exceed Previous Projections of 20 to 30%

    The Eastern Company (AMEX:EML) announced the highest quarterly financial results in the company's 140-year-old-history. For the second quarter ended July 4, 1998, Eastern reported net income of $1,305,000, or $0.55 per basic share, compared with 1997's second quarter net income of $833,000, or $0.30 per basic share. Eastern's second quarter performance marks the sixth consecutive quarter that the company has reported higher earnings. Sales for the second quarter of 1998 were $17.4 million, compared with $16.9 million in the same period of 1997.
    For the first six months of 1998, Eastern reported net income of $2,595,000, or $1.05 per basic share, on sales of $35.8 million. These results compare with net income of $1,447,000, or $0.53 per basic share, on sales of $32.9 million for the first six months of 1997.
    Leonard F. Leganza, president and chief executive officer of The Eastern Company, stated, "The company continues to generate good operating results. Our performance reflects momentum within each of our product families and is also a result of commitment by our operating management teams to achieve our business and financial objectives. Incoming orders and backlogs remain firm. These second quarter results and our expectations for a continuing good economic climate, now position us for earnings growth in 1998 that may exceed our previous projections of 20 to 30 percent."
    Leganza continued, "There are a number of promising initiatives underway throughout the company. Our Eberhard operations recently added two large Canadian truck trailer manufacturers to its customer base. We have designed two locks that will be used on a new, soon-to-be-introduced American-made, motorcycle. In addition, we are experiencing increased business in Mexico due to the growing demand for our security and industrial hardware."
    The Eastern Company manufactures and markets a broad range of specialty locks and industrial hardware and has seven operating locations in the U.S.A., Canada, Mexico and the Pacific Rim. It has paid consecutive dividends since 1940.

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 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

                                           13 wks           13 wks
                                       July 4, 1998    June 27, 1997

Net Sales                               $17,353,207      $16,919,070

Net Income After Tax                      1,304,509          832,940

Net Income Per Share:
     Basic                              $      0.55      $      0.30
     Diluted                            $      0.52      $      0.30

Weighted average shares 
  outstanding: 

    Basic                                2,393,358        2,722,616
    Diluted                              2,512,085        2,754,718




                                             SIX Months Ended

                                           26 wks           26 wks
                                       July 4, 1998    June 27, 1997

Net Sales                               $35,765,163      $32,853,668

Net Income After Tax                      2,594,606        1,447,363

Net Income Per Share:
     Basic                              $      1.05      $      0.53
     Diluted                            $      1.01      $      0.52

Weighted average shares 
  outstanding:                            
     Basic                                2,476,320        2,734,855  
     Diluted                              2,580,621        2,765,581



     --30--cd/bos* kl/bos ls/bos

     CONTACT: The Eastern Company
              John Dibble, 203/729-2255, Ext. 241

    KEYWORD: MASSACHUSETTS CONNECTICUT
    INDUSTRY KEYWORD: EARNINGS


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