-----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, UX1pFdafjBQJ+8LRrBtj/QycbDkJqpoPGaktl6gvDrLepEICTo4QRQ+zfPNTLzHb gp7xOFtjl/n6fo+x/o8lcg== 0000031107-08-000101.txt : 20081022 0000031107-08-000101.hdr.sgml : 20081022 20081022110221 ACCESSION NUMBER: 0000031107-08-000101 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080927 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20081022 DATE AS OF CHANGE: 20081022 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: 081134682 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 form8k3rdqtr2008.htm FORM 8K 3RD QTR 2008

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 22, 2008

(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)

 

________________________________________________

(Former name or former address, if changed since last report)

 

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)

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

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

 

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

 

o Pre-commencement communications pursuant to Rule 13e-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 22, 2008 announcing the third quarter earnings for 2008 is attached hereto.

 

Section 7 – Regulation FD

 

 

ITEM 7.01 - Regulation FD Disclosure

 

On October 22, 2008, The Eastern Company released the third quarter earnings of 2008. A copy of the Press Release dated October 22, 2008 announcing the third quarter earnings for 2008 is attached hereto.

 

Section 9 – Financial Statements and Exhibits

 

ITEM 9.01 - (d) Exhibits

 

 

(99)

Press Release dated October 22, 2008 announcing the third quarter earnings for 2008.

 

 

 

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 22, 2008     

By:  /s/John L. Sullivan III

 

John L. Sullivan III
Vice President and Chief Financial Officer

 

 

 

 EX-99 2 ex993rdqtr2008.htm PRESS RELEASE OCT. 22, 2008

Exhibit 99

 

FOR IMMEDIATE RELEASE

 

October 22, 2008

 

THE EASTERN COMPANY REPORTS RESULTS

FOR THE THIRD QUARTER AND NINE MONTHS OF 2008

 

Naugatuck, CT–The Eastern Company (AMEX-EML) today announced the results of its operations for the third quarter and nine months of 2008. Sales for the quarter were $34.6 million, compared to $36.0 million for the same period in 2007, a 4% decrease. Net income for the third quarter was $875 thousand or $0.14 per diluted share compared to the $1.7 million, or $0.29 per diluted share that was reported in the third quarter 2007.

 

Net sales for the nine months of 2008 were $103.6 million compared to $122.5 million for the first nine months of the previous year. Sales in the 2007 period included $18.1 million of latching system sales for use in the military’s up-armored Humvee program under a one-time limited contract. “Core” business sales for the nine months of 2007 therefore were $104.4 million. Year to date earnings for the nine month period ended September 27, 2008 were $3.4 million or $0.56 per diluted share, compared to $9.2 million or $1.54 per diluted share for the same period in 2007.

 

Leonard F. Leganza, Chairman, President and CEO stated, “The extremely higher costs of metals, which we use a great deal of, as well as other raw materials and energy, all had a downward impact on our operating earnings. Many of these increases outpaced our ability to pass the increases on to our customers in a timely manner. We anticipate these costs should level off in the near future. The slow down and unpredictability of the general economy also made the third quarter a challenging one, particularly in view of our diversity and participation in several markets.”

 

Mr. Leganza also stated, “The Frazer & Jones Division had to contend with the severe impact caused by the rising costs of scrap steel and energy, both critical to that operation. However, higher global fuel costs has increased the world wide demand for coal resulting in a 45% increase in Frazer & Jones sales of our proprietary mine roof support anchors.

 

Our Eberhard Division continues to receive orders for latching systems and other hardware used in military vehicles with initial shipments of those orders beginning in the fourth quarter of 2008 and into 2009.”

 

Mr. Leganza continued, “As we stated in our second quarter news release, the Class 8 truck market has experienced a significant downturn and current projections are that market will remain relatively flat through the third quarter of 2009. Overall, sales of products to the Class 8 truck market are down for the first nine months of 2008, as compared to the same period in 2007. However, our Canadian Commercial Vehicle subsidiary continues

 

to expand the marketing and sale of their lightweight honeycomb composite technology to be used in other markets. This should lessen our dependence on the Class 8 truck market.”

 

Mr. Leganza continued further, “Our Security Products Group is also feeling the effects of the economic slow down in some of the market segments they serve. Airline and other leisure travel have had a downward impact on the luggage industry which we serve, while housing and credit conditions have affected the products we offer the appliance industry. In addition, our security group has had to contend with Asian suppliers passing on price increases related to raw materials as well as foreign exchange rate increases, reducing our margins.”

 

Mr. Leganza concluded, “As always, we are confident we will overcome these challenges as we move forward and we continue to expend efforts to enhance shareholder value.”

 

The Eastern Company is a 150-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 is 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. 27, 2008

 

Sept. 29, 2007

 

Sept. 27, 2008

 

Sept. 29, 2007

Net Sales

 

 

$34,550,899

 

$ 36,027,712

 

$103,568,528

 

$122,520,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income After Tax

 

$ 875,041

 

$ 1,706,642

 

$ 3,436,419

 

$ 9,193,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Per Share:

 

 

 

 

 

 

 

 

Basic

 

$ 0.15

 

$ 0.30

 

$ 0.59

 

$ 1.64

 

Diluted

 

$ 0.14

 

$ 0.29

 

$ 0.56

 

$ 1.54

 

 

 

 

 

 

 

 

 

 

Weighted average

 

 

 

 

 

 

 

 

shares outstandings:

 

 

 

 

 

 

 

 

Basic

 

5,881,284

 

5,669,274

 

5,842,948

 

5,589,905

 

Diluted

 

6,189,149

 

5,942,529

 

6,166,849

 

5,974,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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