The Eastern Company Reports Record Nine Months Performance; Strong Third Quarter Contributes to Financial Results

10/8/1999 3:33:00 PM

NAUGATUCK, Conn.--(BUSINESS WIRE)--Oct. 8, 1999--The Eastern Company (AMEX:EML) today reported an eighteen percent increase in nine month earnings to $4.7 million or $1.30 per basic share compared to $4.0 million or $1.09 per basic share for the same nine month period in 1998. Net sales were $57.7 million which represents a seven percent increase over the $53.8 million net sales for the nine months in the previous year.

Third quarter earnings for 1999 increased nineteen percent to $1.7 million or $.46 per basic share. This compares to last year's earnings of $1.4 million or $.39 per basic share for the same quarter of 1998. Net sales of $18.2 million for this period compare to the $18.0 million sales reported in the third quarter of 1998. Leonard F. Leganza, President and CEO of Eastern, commented, "Strong earnings results in both vehicular and industrial hardware product lines were contributors to this earnings increase."

Mr. Leganza continued, "As 1999 has progressed, our financial results are generally in line with the projections forecasted earlier in the year. We expect that this year-to-year trend of strong performance, combined with solid incoming orders and backlogs at most of our seven operating locations, will keep The Eastern Company on target for a third record year of both sales and earnings."

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 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. -0-