NAUGATUCK, Conn.--(BUSINESS WIRE)--July 1, 1999--The Eastern
Company (AMEX:EML) stated today that its business remains strong and
that it is on target for another year of solid growth in both sales
and earnings. The Company's optimistic outlook and solid financial
position were important factors for declaring two dividend increases
over the past 12 months as well as a three-for-two stock split that
became effective June 15, 1999.
Eastern has grown from $57.9 million in sales in 1996 to $70.8
million in 1998. Earnings have expanded at an even faster rate-from
$0.33 per basic share in 1996 to $2.24 per basic share in 1998.
Leonard F. Leganza, President and CEO, stated, "The introduction
of new, higher margin security products, the addition of new customers
and a growing demand for the Company's vehicular hardware by the truck
body industry have all contributed to this growth. Of particular note
are the sustained high levels of demand of our locks and latches used
on sport utility and pickup trucks and also on locking systems which
secure personal computer networks."
Mr. Leganza continued, "In view of the continuing strength of
incoming orders and backlogs in all of our three product segments, we
expect that Eastern's sales and earnings momentum will continue at a
record level through the remainder of 1999. On a POST-SPLIT basis, we
anticipate a 15% to 20% growth in second quarter earnings per share as
compared to the same period in 1998 while sales for this same period
are expected to increase about 10% to 15%. As a result, sales and net
earnings for the first half of this year should be in the range of
$40 million and $3 million respectively. This compares to last year's
results of $35.8 million and $2.6 million."
Eastern expects to announces its second quarter results during
the week of July 12, 1999.
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
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.
CONTACT: The Eastern Company
(203)729-2255, ext. 102
KEYWORD: CONNECTICUT MASSACHUSETTS
INDUSTRY KEYWORD: AUTOMOTIVE