Eastern Reports Record Third Quarter Earnings
NAUGATUCK, Conn.--(BUSINESS WIRE)--Oct. 13, 1998--The Eastern
Company (AMEX:EML) today announced that third quarter net income
increased to $1,407,000, or $0.59 per basic share, compared to
$1,067,000 or $0.40 per basic share, for the same quarter in 1997.
Year-to-date earnings for the nine-month period ended October 3 were
$4,002,000, or $1.64 per basic share, compared to $2,514,000, or $0.93
per basic share, for the same period in the previous year.
Sales for the third quarter were $17,996,000, an 8 percent
increase over sales of $16,664,000 for the same quarter in 1997.
Sales for the nine-month period increased to $53,761,000 from sales of
$49,518,000 for the same nine-month period of 1997.
Leonard F. Leganza, CEO and President, stated, "This growth in
sales and earnings performance for the third quarter is in line with
the projections we announced on Sept. 29, 1998. It is most gratifying
that Eastern continues to conform to its business plan, which is
generating improved operating results. We are pleased to announce
that this represents the seventh consecutive quarter the company has
announced an improvement in its earnings."
"Overall incoming orders and backlogs remain firm at our various
facilities. One particular highlight has been the continued market
strength at out Eberhard division's two manufacturing facilities in
Ohio and Canada. Eberhard is the leading producer of locking bars and
other vehicular hardware for truck trailers. Production of these
items at Eberhard's Canadian operations is 40 percent higher than last
year. To accommodate this increased activity, a 10,000 square foot
expansion of its production facility is under way."
Leganza concluded, "Year-to-date earnings already exceed the
record earnings for the entire full year of 1997. We also anticipate
solid momentum in our fourth quarter performance. As a result, we
should exceed last year's $1.40 per basic share earnings performance
by about 50 percent."
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. It has paid consecutive quarterly dividends since 1940.
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.
Statement of Consolidated Income (unaudited)
THE EASTERN COMPANY (AMEX - EML)
THREE Months Ended NINE Months Ended
13 wks 13 wks 39 wks 39 wks
Oct. 3, 1998 Sept. 27, 1997 Oct. 3,1998 Sept. 27, 1997
Sales $17,995,724 $16,663,855 $53,760,887 $49,517,523
After Tax 1,407,301 1,066,997 4,001,907 2,514,360
Basic $ 0.59 $ 0.40 $ 1.64 $ 0.93
Diluted $ 0.56 $ 0.40 $ 1.57 $ 0.92
Basic 2,381,009 2,624,150 2,444,426 2,702,431
Diluted 2,492,701 2,661,720 2,551,190 2,735,438
CONTACT: The Eastern Company
John Dibble, 203/729-2255, Ext. 241