Eastern Company Reports Solid Second Quarter Sales and Earnings

7/13/2000 11:21:00 AM

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)


                     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

Net Income
 After Tax         1,695,468     1,577,909     3,203,930     3,040,656

Net Income
 Per Share:
    Basic              $0.47         $0.44         $0.88         $0.84
    Diluted            $0.46         $0.42         $0.87         $0.81

Weighted average
    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