-----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, P+RfvFy6JS/viu0DduWefaZQ6WLimjwiuAiwdECd6TUhJipQYAU+lvGSlpTbvALL jCPrrtnkQPuRVgX2GNwSzA== 0000031107-07-000101.txt : 20071024 0000031107-07-000101.hdr.sgml : 20071024 20071024095919 ACCESSION NUMBER: 0000031107-07-000101 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071024 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071024 DATE AS OF CHANGE: 20071024 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: 071187073 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 form8k3rd2007.txt FORM 8-K 3RD QTR 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 24, 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) 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 (see General Instruction A.2) [ ] 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 4d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 3e-4(c) under the Exchange Act (17 CFR 240.13e-4( c)) Section 2 - Financial Information ITEM 2.02 - Results of Operations and Financial Condition Press Release dated October 24, 2007 announcing the third quarter earnings for 2007 is attached hereto. Section 7 - Regulation FD. ITEM 7.01 - Regulation FD Disclosure On October 24, 2007, The Eastern Company released the third quarter earnings of 2007. A copy of the Press Release dated October 24, 2007 announcing the third quarter earnings for 2007 is attached hereto. Section 9 - Financial Statements and Exhibits ITEM 9.01 - (d) Exhibits (99) Press Release dated October 24, 2007 announcing the third 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: October 24, 2007 By: /s/Leonard F. Leganza ----------------- ------------------------- Leonard F. Leganza Chairman, President and Chief Executive Officer EX-99 2 ex99third2007.txt PRESS RELEASE - 3RD QTR 2007 Exhibit 99 FOR IMMEDIATE RELEASE October 24, 2007 THE EASTERN COMPANY REPORTS RESULTS FOR THE THIRD QUARTER AND NINE MONTHS OF 2007 Naugatuck, CT-The Eastern Company (AMEX-EML) today announced the results of its operations for the third quarter and nine months of 2007. Sales for the quarter were $36.0 million, compared to $31.2 million for the same period in 2006, a 15% increase, while net income showed a slight increase and is comparable to the $1.7 million, or $0.29 per diluted share that was reported in the third quarter 2006. Net sales for the nine months of 2007 were $122.5 million compared to $88.7 million for the first nine months of the previous year, a 38% increase. Year to date earnings for the nine month period ended September 29, 2007 were $9.2 million or $1.54 per diluted share, compared to $4.0 million or $0.70 per diluted share for the same period in 2006, a 128% increase. Leonard F. Leganza, Chairman, President and CEO stated, "Profitability returned to a more acceptable level in the third quarter of 2007 compared to the second quarter, primarily the result of price increases to recover ever increasing raw material costs that we have been experiencing. In addition to the items that have been negatively impacting our profit margins, such as the increases in raw materials, energy and health care, the third quarter and nine month periods in 2007 were also impacted by the external costs resulting from mandatory compliance with the Sarbanes-Oxley Act of 2002. The Company's external costs of compliance with Section 404 of the Sarbanes-Oxley Act have totaled approximately $598,000 through the end of the third quarter of 2007. The external costs incurred during the first nine months of 2007 were approximately $315,000 or $0.04 per diluted share, not including difficult to determine internal costs." Mr. Leganza continued, "As we stated in our second quarter news release, sales and profits in the nine 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 9% of the sales increase in the third quarter of 2007 and 10% of the increase in the nine 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 third quarter and nine month periods compared to the 2006 periods." Mr. Leganza added, "The sales increase in the third quarter was our twentieth consecutive quarter of improved year to year sales, an accomplishment that we expect will end during the fourth quarter of 2007, because the fourth quarter of 2006 reflected the large military project for up-armored Humvees. The Company will continue to face the challenges of offsetting the increased costs of raw materials, energy, health care and mandatory compliance with regulations, such as Sarbanes-Oxley, by price increases, improvements in efficiency or by global outsourcing." Mr. Leganza concluded, "As I stated earlier this year, 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, we are also continuing our marketing efforts for our mine roof anchors to be sold in China. The Company continues to pursue complementary businesses and product lines. Despite all of the challenges the Company has been faced with, the Company is on track to set new records for both sales and profits for the full year 2007." 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 NINE Months Ended 13 wks 13 wks 39 wks 39 wks Sept. 29, 2007 Sept. 30, 2006 Sept. 29, 2007 Sept. 30, 2006 -------------- -------------- -------------- -------------- Net Sales $ 36,027,712 $ 31,206,388 $ 122,520,357 $ 88,735,730 Net Income After Tax $ 1,706,642 $ 1,667,167 $ 9,193,236 $ 4,023,489 Net Income Per Share: Basic $ 0.30 $ 0.30 $ 1.64 $ 0.74 Diluted $ 0.29 $ 0.29 $ 1.54 $ 0.70 Weighted average shares outstandings: Basic 5,669,274 5,477,302 5,589,905 5,472,682 Diluted 5,942,529 5,766,147 5,974,234 5,739,458
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