-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EXWcLgL8BL3PtfZBpRR05iG+VAu1J42XRxgvaD3K34KTWzauCT4VudZwwb2Xv+4x D7z/mtM021bDg1EBRfUtpg== 0000031107-06-000084.txt : 20061025 0000031107-06-000084.hdr.sgml : 20061025 20061025102133 ACCESSION NUMBER: 0000031107-06-000084 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061025 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061025 DATE AS OF CHANGE: 20061025 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EASTERN CO CENTRAL INDEX KEY: 0000031107 STANDARD INDUSTRIAL CLASSIFICATION: CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420] IRS NUMBER: 060330020 STATE OF INCORPORATION: CT FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-00599 FILM NUMBER: 061161747 BUSINESS ADDRESS: STREET 1: 112 BRIDGE ST STREET 2: P O BOX 460 CITY: NAUGATUCK STATE: CT ZIP: 06770 BUSINESS PHONE: 2037292255 MAIL ADDRESS: STREET 1: 112 BRIDGE STREET STREET 2: P O BOX 460 CITY: NAUGATUCK STATE: CT ZIP: 06770 8-K 1 third8k2006.txt THIRD QTR 2006 PRESS RELEASE 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: October 25, 2006 ---------------- (Date of earliest event reported) The Eastern Company ------------------- (Exact name of Registrant as specified in its charter) Connecticut 0-599 06-0330020 ----------- ----- ---------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 112 Bridge Street, Naugatuck, Connecticut 06770 - ----------------------------------------- ----- (Address of principal executive offices) (Zip Code) (203) 729-2255 -------------- (Registrant's telephone number, including area code) Section 2 - Financial Information ITEM 2.02 - Results of Operations and Financial Condition Press Release dated October 25, 2006 announcing the third quarter earnings for 2006 is attached hereto. Section 7 - Regulation FD. ITEM 7.01 - Regulation FD Disclosure On October 25, 2006, The Eastern Company released the third quarter of 2006 quarterly earnings. A copy of the Press Release dated October 25, 2006 announcing the third quarter earnings for 2006 is attached hereto. Section 9 - Financial Statements and Exhibits ITEM 9.01 - (d) Exhibits (99) Press Release dated October 25, 2006 announcing the third quarter earnings for 2006. 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. The Eastern Company Date: October 25, 2006 By: /s/John L. Sullivan III ----------------- ---------------------------- John L. Sullivan III Vice President, Secretary & Treasurer EX-99 2 third06ex998k.txt PRESS RELEASE DATED 10/25/06 Exhibit 99 FOR IMMEDIATE RELEASE October 25, 2006 THE EASTERN COMPANY REPORTS RESULTS FOR THE THIRD QUARTER AND NINE MONTHS OF 2006 Naugatuck, CT-The Eastern Company (AMEX-EML) today announced the results of its operations for the third quarter and nine months of 2006. All per share data reflects the impact of the three-for-two stock split announced on September 28, 2006. Sales for the third quarter were $31.2 million, compared to $27.2 million for the same period in 2005, a 15% increase, while net income was $1.7 million, or $0.28 per diluted share, compared to the $1.3 million, or $0.21 per diluted share, reported in the second quarter of 2005, a 33% increase. Net sales for the nine months were $88.7 million compared to $80.9 million for the first nine months of the previous year, a 10% increase. Year to date earnings for the nine month period ended September 30, 2006 were $4.0 million or $0.69 per diluted share, compared to $3.1 million or $0.53 per diluted share for the same period in 2005, a 31% increase. Both the quarter and nine month results reflect favorable tax provision adjustments of approximately $0.06 per diluted share. Leonard F. Leganza, President and CEO stated, "Our sales increase in the third quarter was the sixteenth consecutive quarter of improved year-to-year sales, a trend that should continue into 2007. In September, the Industrial Hardware segment received orders from a military contractor for door latching components to be used in a project to retro-fit military Humvees which should result in an additional $31.5 million in sales between September 2006 and March of 2007." Mr. Leganza added, "Also, toward the end of the third quarter, the Security Products segment of the Company completed the acquisition of the Royal Lock Corporation. That acquisition will expand our product range and provide a stronger market presence for that segment of our business. Royal Lock is a supplier of cam locks, switch locks, padlocks, latches, handles and specialty hardware parts. Its products are sold to numerous OEM's in several market segments, including automotive, recreational vehicles and furniture as well as to electronics and fabricated metal parts producers. Royal Lock's capabilities provide customized solutions to an unlimited range of lock and specialty part requirements." Mr. Leganza continued, "We are encouraged that sales at our Metal Products segment continue to improve, however, productivity in this segment fell far short of our anticipated goals in the third quarter. The installation of new metal pouring systems, which will improve the efficiency and productivity in manufacturing ductile iron castings, took longer to implement and encountered factors that we had not expected. The installation has now been completed, is operating reliably and improvements in our production efficiency should now begin to be realized. During the third quarter charges to earnings resulted in a loss of approximately $0.11 per diluted share." Mr. Leganza concluded, "As I stated earlier this year, we continue to be optimistic about our current and future opportunities and results despite the escalating costs of raw materials, utilities and health care presently being experienced. Our optimism is reflected in the 9% dividend increase announced in April of this year and the three-for-two stock split announced in September 2006." The Eastern Company is a 148-year-old manufacturer of industrial hardware, security products and metal castings. It operates from nine locations in the U.S., Canada, Mexico, Taiwan and China. The diversity of the Company's products helps 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. Contact: Leonard F. Leganza or John L. Sullivan III (203) 729-2255
Statement of Consolidated Income (unaudited) THE EASTERN COMPANY (AMEX - EML) THREE Months Ended NINE Months Ended 13 wks 13 wks 39 wks 39 wks Sept. 30, 2006 Oct. 1, 2005 Sept. 30, 2006 Oct. 1, 2005 -------------- ------------ -------------- ------------ Net Sales $ 31,206,388 $ 27,204,815 $ 88,735,730 $ 80,893,693 Net Income After Tax $ 1,667,167 $ 1,256,367 $ 4,023,489 $ 3,070,338 Net Income Per Share: Basic $ 0.30 $ 0.23 $ 0.74 $ 0.56 Diluted $ 0.28 $ 0.21 $ 0.69 $ 0.53 Weighted average shares outstandings: Basic 5,477,302 5,455,973 5,472,682 5,454,197 Diluted 5,855,170 5,878,151 5,822,208 5,835,614
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