-----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, UvTSWbyVVej/D4ggxH3WW5xpLjQWEe8oeNA38MLGCYeBdXCol6WzVs4R23YKx7fS HEHqqpBBi76bJe+wLb0Ujw== 0000031107-07-000079.txt : 20070726 0000031107-07-000079.hdr.sgml : 20070726 20070726092317 ACCESSION NUMBER: 0000031107-07-000079 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070726 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070726 DATE AS OF CHANGE: 20070726 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: 071000938 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 form8k2nd2007.txt FORM 8K 2ND QTR 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: July 26, 2007 ----------------------------- (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 July 26, 2007 announcing the second quarter earnings for 2007 is attached hereto. Section 7 - Regulation FD. ITEM 7.01 - Regulation FD Disclosure On July 26, 2007, The Eastern Company released the second quarter earnings of 2007. A copy of the Press Release dated July 26, 2007 announcing the second quarter earnings for 2007 is attached hereto. Section 9 - Financial Statements and Exhibits ITEM 9.01 - (d) Exhibits (99) Press Release dated July 26, 2007 announcing the second quarter earnings for 2007. 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: July 26, 2007 By: /s/Leonard F. Leganza -------------- ------------------------- Leonard F. Leganza Chairman, President and Chief Executive Officer EX-99 2 ex99second2007.txt PRESS RELESE 7/26/07 Exhibit 99 FOR IMMEDIATE RELEASE July 26, 2007 THE EASTERN COMPANY REPORTS RESULTS FOR THE SECOND QUARTER AND SIX MONTHS OF 2007 Naugatuck, CT-The Eastern Company (AMEX-EML) today announced the results of its operations for the second quarter and six months of 2007. Sales for the quarter were $34.2 million, compared to $29.7 million for the same period in 2006, a 15% increase, while net income was $728,000, or $0.12 per diluted share, compared to the $1.2 million, or $0.21 per diluted share, reported in the second quarter of 2006, a 40% decrease. Net sales for the six months of 2007 were $86.5 million compared to $57.5 million for the first six months of the previous year, a 50% increase. Year to date earnings for the six month period ended June 30, 2007 were $7.5 million or $1.25 per diluted share, compared to $2.4 million or $0.41 per diluted share for the same period in 2006, a 218% increase. Leonard F. Leganza, Chairman, President and CEO stated, "Sales and profits in the six month period were impacted favorably by the sales of door latching system components used in a military project which up-armored existing Humvees. That project was completed during the first quarter of 2007. In addition, the acquisitions of Royal Lock and Summit Manufacturing, which were completed in the latter part of 2006, contributed approximately 11% of the sales increase in the second quarter of 2007 and 10% of the increase in the six month period compared to the prior year periods. Excluding the impact of the military project and acquisitions, sales increases were experienced in each of our "core" business segments in both the second quarter and six month periods compared to the 2006 periods. We continue to anticipate further increases in sales and earnings as the year progresses." Mr. Leganza continued, "Notwithstanding the sales increase in the second quarter, which was our nineteenth consecutive quarter of improved year to year sales, profit margins were negatively impacted by several factors. We continued to face the challenge of offsetting the increased costs of raw materials, energy and health care by price increases, improvements in efficiency or by global outsourcing. The quarter also reflects the amortization of intangible expenses related to the Royal Lock and Summit acquisitions. In our Security Products segment, certain higher margin products were phased out by customers in favor of other products with lower margins, and in our Metal Products segment, we experienced some challenging problems in casting two new products related to military orders which resulted in higher manufacturing costs and lower margins. The Company believes the problems associated with these two products are now behind us." Mr. Leganza added, "As we noted in our first quarter 10-Q, the Industrial Hardware segment was affected by the slowdown in sales of "sleeper cabs" for the Class 8 truck market that was caused by the tighter emissions regulations which were enacted in the first quarter. We expect the "sleeper cab" business to pick up over the remainder of 2007." Mr. Leganza concluded, "Despite the increased costs and other factors affecting the second quarter, we continue to be optimistic about our current and future opportunities and results. The Company is continuing to seek additional military business including the retrofitting of additional Humvees, the Mine Resistant Ambush Protected (MRAP) program and various other projects being developed. In addition, the Company continues to pursue complementary businesses and product lines." The Eastern Company is a 149-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 SIX Months Ended 13 wks 13 wks 26 wks 26 wks June 30, 2007 July 1, 2006 June 30, 2007 July 1, 2006 ------------- ------------ ------------- ------------ Net Sales $ 34,175,471 $ 29,669,159 $ 86,492,645 $ 57,529,342 Net Income $ 728,356 $ 1,212,557 $ 7,486,594 $ 2,356,322 Net Income Per Share: Basic $ 0.13 $ 0.22 $ 1.35 $ 0.43 Diluted $ 0.12 $ 0.21 $ 1.25 $ 0.41 Weighted average shares outstandings: Basic 5,593,073 5,476,055 5,550,219 5,470,373 Diluted 6,048,133 5,740,326 5,990,085 5,721,276
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