The Eastern Company Reports Record Results for 2007
2/6/2008 10:03:00 AM
NAUGATUCK, Conn.--(BUSINESS WIRE)--Feb. 6, 2008--The Eastern
Company (AMEX-EML) today announced its operating results for the
fourth quarter and full year of 2007.
Sales for the fourth quarter of 2007 were $33.8 million, a 32%
decrease when compared to the $49.7 million in the fourth quarter of
2006. The 2006 fourth quarter, however, included $18.5 million of
sales attributed to a military contract where we provided latching
systems for the up-armored Humvee program. Sales of the Company's
"core" business units increased by 8% in the fourth quarter of 2007
compared to 2006.
Sales for the full year 2007 were $156.3 million compared to
$138.5 in 2006, an increase of 13%. The year 2007 included $20.5
million of military sales while the year 2006 included $18.5 million
of military sales. The Company's "core" business unit sales in 2007
increased approximately 13% to $135.8 million from $119.9 million in
For the full year 2007, net income increased 4%, from $9.7 million
or $1.67 per diluted share to $10.1 million or $1.68 per diluted
share. Fourth quarter earnings of $887,500 or $.15 per diluted share
compared to $5.6 million or $.96 per diluted share in the fourth
quarter of 2006.
Leonard F. Leganza, Chairman and President stated, "While 2007 was
a challenging year, we did set records in both sales and earnings for
the full year. Notwithstanding the positive impact as a result of
fulfilling our military contract shipments, the Company's "core"
business units did increase sales in both the fourth quarter and full
year of 2007. Barring any major slow down in the economy, we are
optimistic that this trend will continue through 2008."
Mr. Leganza continued, "The full integration of the Royal Lock and
Summit Corporation acquisitions were completed in 2007 and contributed
over $11 million in sales for the year. They will continue to be a
positive benefit to the Company in 2008. In addition, our Metal
Castings Group is experiencing increasing order activity partially the
result of the currently favorable exchange rate between the U.S.
dollar and Euro as well as the slowly increasing Chinese Yuan making
our pricing more competitive in this global economy."
Mr. Leganza added, "Even though we had fulfilled the one-time
military contract to deliver door latching components used in the
retro fit program for up armored Humvees in the fourth quarter of 2006
and first quarter of 2007, our Eberhard Division continues to develop
additional combat latching systems for newly designed military
vehicles. Those activities will be positive factors toward increasing
our revenue growth."
Mr. Leganza concluded, "In 2008 The Eastern Company will have
achieved a historical milestone - 150 years of continuous excellence
and we intend to further build on our past successes through strategic
acquisitions in addition to our internal growth and market
The Eastern Company is a 150-year-old leading manufacturer of
vehicular and industrial hardware, locks, metal castings, coin
collection and smart card products. It operates from nine locations in
the U.S., Canada, Mexico, Taiwan and China. The diversity of the
Company's products enables it to respond to the changing requirements
of a broad array of markets.
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 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 TWELVE Months Ended
13 wks 13 wks 52 wks 52 wks
Dec. 29, Dec. 30, Dec. 29, Dec. 30,
2007 2006 2007 2006
----------- ----------- ------------ ------------
Net Sales $33,760,726 $49,729,681 $156,281,083 $138,465,411
Net Income After Tax 887,457 5,635,259 10,080,693 9,658,748
Net Income Per
Basic $ 0.15 $ 1.03 $ 1.79 $ 1.76
Diluted $ 0.15 $ 0.96 $ 1.68 $ 1.67
Basic 5,754,584 5,478,592 5,631,073 5,474,137
Diluted 6,036,320 5,854,147 5,989,754 5,768,108
CONTACT: The Eastern Company
Leonard F. Leganza or John L. Sullivan III
SOURCE: The Eastern Company