8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (date of earliest event reported): July 20, 2012

ACME UNITED CORPORATION

(Exact name of registrant as specified in its charter)

__________________

Connecticut	001-07698	06-0236700
(State or other jurisdiction of incorporation or organization)	(Commission file number)	(I.R.S. Employer Identification No.)
60 Round Hill Road, Fairfield, Connecticut		06824
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:  (203) 254-6060

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[_]     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[_]     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[_]     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[_]     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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ITEM 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 20, 2012, Acme United Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2012.  A copy of the press release is attached as Exhibit 99.1 to this current report.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS.

(c)           Exhibits

Exhibit Number	Description
99.1	Press release dated July 20, 2012.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ACME UNITED CORPORATION

By	/s/  Walter C. Johnsen
	Walter C. Johnsen Chairman and Chief Executive Officer
Dated:   July 20, 2012
By	/s/  Paul G. Driscoll
	Paul G. Driscoll Vice President and Chief Financial Officer
Dated:  July 20, 2012

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EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release dated July 20, 2012.

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EX-99.1

Exhibit 99.1

ACME UNITED CORPORATION           NEWS RELEASE

CONTACT:	Paul G. Driscoll	Acme United Corporation	60 Round Hill Road	Fairfield, CT  06824
		Phone: (203) 254-6060	FAX: (203) 254-6521

 FOR IMMEDIATE RELEASE   July 20, 2012

ACME UNITED CORPORATION REPORTS 15% SALES GROWTH AND 18% EARNINGS INCREASE FOR SECOND QUARTER

FAIRFIELD, CONN. – July 20, 2012 – Acme United Corporation (NYSE AMEX:ACU) today announced that net sales for the second quarter ended June 30, 2012 were $27.6 million, compared to $24.0 million in the comparable period of 2011, an increase of 15% (16% in local currency).

Net income was $2,061,000, or $.66 per diluted share, for the quarter ended June 30, 2012, compared to $1,743,000 or $.56 per diluted share for the comparable period last year, an increase of 18% in both net income and diluted earnings per share.

Net sales for the six months ended June 30, 2012 were $44.5 million, compared to $38.4 million in the same period in 2011, an increase of 16% (17% in local currency).

Net income for the six months ended June 30, 2012 was $2,320,000, or $.74 per diluted share, compared to $1,863,000, or $.60 per diluted share in the comparable period last year, a 25% increase in net income and 23% in diluted earnings per share.

Net sales for the quarter ended June 30, 2012 in the U.S. segment increased 22% compared to the same period in 2011 primarily due to increased sales of Camillus knives, iPoint pencil sharpeners, paper trimmers and first aid products. Net sales for the six months ended June 30, 2012 in the U.S. segment increased 21% compared to the same period in 2011.  Net sales in Canada for the three months ended June 30, 2012 were constant in U.S. dollars but increased 4% in local currency compared to the same period in 2011.  Net sales for the six months ended June 30, 2012 in Canada decreased 4% in U.S. dollars and 1% in local currency compared to the same period in 2011.

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Net sales in Europe for the three months ended June 30, 2012 decreased 21% in U.S. dollars and 11% in local currency compared to the same period in 2011 due to the loss of a large customer as a result of their financial troubles. Net sales for the six months ended June 30, 2012 in Europe increased 4% in U.S. dollars and 13% in local currency compared to the same period in 2011.

Gross margins were 36% in the second quarters of both 2012 and 2011.  Gross margins were 35% for the six months ended June 30, 2012 compared to 36% for the comparable period last year.

Operating profit was $3,078,000 for the quarter ended June 30, 2012 compared to$2,460,000 for the comparable period last year, an increase of 25%. Operating profit was$3,536,000 for the six months ended June 30, 2012 compared to $2,643,000 for the comparableperiod last year, an increase of 34%.

Walter C. Johnsen, Chairman and CEO said, “I am very pleased with the Company’s performance, which has just recorded its highest quarterly sales and earnings in its history.  Our Westcott, Clauss, Camillus, Physicians Care, and Pac-Kit brands each had record quarterly sales. In addition, our back-to-school sales continue to be strong.”

Mr. Johnsen added that The C-Thru Ruler product family has now been integrated into Acme United’s operations. He looks forward to its contribution to earnings in the third quarter and going forward.

The Company’s bank debt less cash on June 30, 2012 was $15.9 million compared to $14.4 million on June 30, 2011.  On June 7, 2012, the Company paid approximately $1.5 million for certain assets of the C-Thru Ruler Company. Additionally, during the 12 month period ended June 30, 2012, Acme purchased 40,560 shares of its common stock for treasury for a total of approximately $400,000, paid approximately $800,000 in dividends on its common stock and generated $1.3 million in cash flow from operations less capital expenditures.

ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and safety products to the school, home, office, hardware and industrial markets. Its leading brands include Westcott®, Clauss®, Camillus®, PhysiciansCare ® and Pac-Kit®.

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Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, the following:  (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the impact of current uncertainties in global economic conditions and the ongoing financial crisis affecting the domestic and foreign banking system and financial markets, including the impact on the Company’s suppliers and customers (iii) currency fluctuations (iv) the Company’s plans and results of operations will be affected by the Company’s ability to manage its growth, including its ability to integrate successfully companies which it may acquire from time to time and (v) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
SECOND QUARTER REPORT 2012
(Unaudited)
	Three Months Ended			Three Months Ended
Amounts in 000's except per share data	June 30, 2012			June 30, 2011
Net sales	$	27,594		$	24,029
Cost of goods sold		17,773			15,346
Gross profit		9,821			8,683
Selling, general, and administrative expenses		6,743			6,223
Income from operations		3,078			2,460
Interest expense		91			114
Interest income		(29	)		(40	)
Net interest expense		62			74
Other expense		43			3
Total other expense		105			77
Pre-tax income		2,973			2,383
Income tax expense		912			640
Net income	$	2,061		$	1,743
Shares outstanding - Basic		3,103			3,096
Shares outstanding - Diluted		3,144			3,117
Earnings per share basic	$	0.66		$	0.56
Earnings per share diluted		0.66			0.56

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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
SECOND QUARTER REPORT 2012 (cont.)
(Unaudited)
	Six Months Ended			Six Months Ended
Amounts in 000's except per share data	June 30, 2012			June 30, 2011
Net sales	$	44,472		$	38,430
Cost of goods sold		28,707			24,439
Gross profit		15,765			13,991
Selling, general, and administrative expenses		12,229			11,348
Income from operations		3,536			2,643
Interest expense		193			211
Interest income		(76	)		(90	)
Net interest expense		118			121
Other expense (income)		86			(22	)
Total other expense		203			99
Pre-tax income		3,333			2,544
Income tax expense		1,013			681
Net income	$	2,320		$	1,863
Shares outstanding - Basic		3,118			3,085
Shares outstanding - Diluted		3,142			3,111
Earnings per share basic	$	0.74		$	0.60
Earnings per share diluted		0.74			0.60

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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
SECOND QUARTER REPORT 2012
(Unaudited)
Amounts in 000's	June 30, 2012		June 30, 2011
Assets:
Current assets:
Cash	$	7,141	$	4,234
Accounts receivable, net		23,857		23,481
Inventories		26,681		23,575
Prepaid and other current assets		1,859		1,298
Total current assets		59,538		52,588
Property and equipment, net		2,377		2,303
Long term receivable		1,734		1,810
Intangible assets, less amortization		4,288		3,331
Other assets		1,217		1,032
Total assets	$	69,154	$	61,064
Liabilities and stockholders' equity:
Current liabilities
Accounts payable	$	9,968	$	8,210
Other current liabilities		5,612		5,145
Total current liabilities		15,580		13,355
Bank debt		23,005		18,601
Other non current liabilities		1,130		1,583
		39,715		33,539
Total stockholders' equity		29,439		27,525
Total liabilities and stockholders' equity	$	69,154	$	61,064

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