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): May 7, 2015

Hardinge Inc.

(Exact name of registrant as specified in its charter)

New York	000-15760	16-0470200
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)
One Hardinge Drive Elmira, NY		14902
(Address of principal executive offices)		(Zip Code)

(607) 734-2281

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, 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:

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

o Soliciting material 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))

Item 2.02 Results of Operations and Financial Condition.

On May 7, 2015, Hardinge Inc. (the “Company”) issued a press release announcing the Company’s first quarter 2015 financial results. Copies of the press release and the presentation slides used in connection with the Company’s earnings conference call and webcast on May 7, 2015 are respectively included as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K. On May 5, 2015, the Board of Directors of the Company declared a cash dividend of $0.02 per share on the Company’s common stock. The dividend is payable on June 10, 2015 to stockholders of record as of June 1, 2015.

Item 8.01. Other Events.

On May 5, 2015, Hardinge's Board of Directors voted to separate the positions of Chairman of the Board and Chief Executive Officer. As a result, John J. Perrotti was elected to succeed Richard L. Simons as Chairman of the Board. Mr. Perrotti, age 54, has served as a director of the Company since 2003 and had been serving as the Company's Lead Independent Director since 2014. Mr. Perrotti has spent over 20 years as a machine tool company executive with Gleason Corporation, a global, privately-held manufacturer of gear production equipment. He is a Director of Gleason and has served as its President and Chief Executive Officer since 2005. He has an M.B.A from the Simon School of Business at the University of Rochester.

On May 5, 2015, Hardinge’s Board of Directors adopted revised stock ownership guidelines for independent directors and certain executive officers. The guidelines apply to all independent directors, the Chief Executive Officer, and such other executive officers of the Company as from time to time determined by the Board and the Chief Executive Officer. Under the guidelines, independent directors are expected to own an amount of the Company’s common stock with a value equal to at least five times the annual retainer payable to independent directors for Board service, and the Chief Executive Officer is expected to own an amount of the Company’s stock with a value equal to at least five times the Chief Executive Officer’s annual base salary. Any other executive subject to the policy is expected to own an amount of the Company’s common stock with a value equal to at least three times the executive’s annual base salary. Directors and executive officers who are subject to the revised guidelines are expected to be in compliance no later than five years after first becoming subject to the revised guidelines.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits.

EXHIBIT NUMBER	DESCRIPTION
99.1	Press release issued by Registrant on May 7, 2015 announcing first quarter 2015 results.
99.2	Presentation slides used by Registrant in connection with its May 7, 2015 earnings conference call and webcast.

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.

		Hardinge Inc.
		(Registrant)
Date	May 7, 2015
		/s/ Douglas J. Malone
		Douglas J. Malone Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

NEWS RELEASE

Hardinge Inc. One Hardinge Drive, Elmira, N.Y. 14902

For more information contact:
Company:	Investor Relations:
Douglas J. Malone Chief Financial Officer Phone: (607) 378-4140	Deborah K. Pawlowski, Kei Advisors LLC Phone: (716) 843-3908 Email: dpawlowski@keiadvisors.com

Hardinge Reports First Quarter2015 Results

• First quarter 2015 orders increase 15% over prior year to $92.9 million

• John J. Perrotti appointed Chairman of the Board

ELMIRA, N.Y., May 7, 2015-Hardinge Inc. (NASDAQ: HDNG), a leading international provider of advanced metal-cutting solutions and accessories, reported financial results for its first quarter ended March 31, 2015.

Net sales (“sales”) for the quarter were $69.1 million, essentially unchanged from the prior year’s first quarter after considering the impact of unfavorable foreign currency translation of $2.5 million. Orders for the quarter increased 15% to $92.9 million, compared with $81.0 million in the prior-year period. This increase was driven by demand for the Company’s grinding machines, especially in Europe.

Net loss was $1.4 million, or $0.11 per diluted share for the quarter, compared with net loss of $0.5 million, or $0.04 per diluted share, in the prior year’s first quarter.

Richard L. Simons, President and Chief Executive Officer, commented, “Revenue for the quarter was in line with our expectations. As in 2014, we anticipated that we would have a slow start to 2015 given the effect that the Chinese Lunar New Year holiday has on our results. We were especially pleased with our strong order levels for the quarter. Orders were up double digit percentages in all of our geographic regions compared with last year’s first quarter, and orders for our specialized grinding machines were the key contributor to our order growth. During the quarter we also received our first orders for our newly acquired Voumard product line. We believe this demonstrates the strength of the brand acquired last September and the market opportunities it presents."

Mr. Simons added, “With orders in excess of $90 million for the second consecutive quarter, backlog is at the highest level it has been in nearly two years. Thus, despite headwinds with currency exchange rates, we anticipate second quarter sales to be in the mid $80 million range. As always, variables that impact the level of recognized quarterly sales include our dependency upon timing of customer acceptances for large customized equipment orders. Such timing can be impacted by customer travel schedules, receipt of test material, readiness of the customer facilities and our ability to finalize complex and demanding processes to meet their requirements. However, as we look out over the year, given the recent order trend and our current pipeline, our confidence in our expectations for solid growth in 2015 has been bolstered."

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Hardinge Reports First Quarter 2015 Results

May 7, 2015

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Quarterly Orders by Region ($ in thousands)
	Quarter Ended
	March 31, 2015		March 31, 2014		December 31, 2014
Orders from Customers in	$	% of Total	$	Year-over-Year % Change	$	Sequential % Change
North America	27,354	29%	24,361	12%	31,467	(13)%
Europe	31,294	34%	28,437	10%	31,302	—%
Asia	34,279	37%	28,241	21%	31,582	9%
Total	92,927		81,039	15%	94,351	(2)%

Net orders (“orders”) during the quarter were $92.9 million, reflecting 15% improvement over the prior-year period. Excluding the impact of foreign currency translation, orders for the quarter were up 18% over the prior year. The quarter benefited from two large orders in excess of $5 million each, one for the European auto industry and the other for the Chinese consumer electronic industry. The Company’s order backlog of

$128.1 million at March 31, 2015 is the highest backlog level since June 2013.

Quarterly Sales by Region ($ in thousands)
	Quarter Ended
	March 31, 2015		March 31, 2014		December 31, 2014
Sales to Customers in	$	% of Total	$	Year-over-Year % Change	$	Sequential % Change
North America	26,305	38%	23,203	13%	28,636	(8)%
Europe	22,929	33%	25,305	(9)%	31,102	(26)%
Asia	19,894	29%	22,342	(11)%	33,270	(40)%
Total	69,128		70,850	(2)%	93,008	(26)%

____________________

Note: Fluctuations in Hardinge’s consolidated sales among geographic locations and industries can vary from quarter to quarter based on the timing and magnitude of orders and projects. Hardinge does not believe that such quarter-to-quarter fluctuations are necessarily indicative of larger business trends. Rather, the Company believes that such business trends can be discerned from the Company’s performance during a longer period of time, such as a trailing twelve-month period.

First Quarter Review

Sales of $69.1 million were essentially flat year-over-year after considering the impact of unfavorable foreign currency translation of $2.5 million. Sales to the North America market increased over the prior-year period as improved economic activity and industrial capacity utilization in the U.S. led to investments in production. Reduced sales to Europe and Asia were largely a result of unfavorable currency translation and offset sales growth in North America.

Gross profit of $18.2 million declined $1.0 million compared with the prior-year period. Gross profit was favorably impacted by increased levels of machine production, particularly at the Company’s European grinding facility. However, an inventory valuation adjustment of approximately $0.7 million at one of its European subsidiaries, combined with $0.6 million of unfavorable foreign currency translation more than offset the improvement realized by increased production levels. Gross margin as a percent of sales declined to 26.4%, compared with 27.1% in the first quarter of 2014.

Selling, general and administrative (“SG&A”) expense increased by $0.5 million compared with the prior-year period to $19.6 million, or 28.4% of sales. SG&A increases were primarily related to our investments for growth in the recently acquired Voumard business, increased expenses to support the higher demand for grinding machines, and expansion of the Company’s Forkardt businesses in China and India. These increases were partially offset by $0.7 million of favorable foreign currency translation when compared with the prior-year period.

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Hardinge Reports First Quarter 2015 Results

May 7, 2015

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Operating loss was $1.4 million, compared with an operating loss of $0.3 million in the prior-year period.

Flexible Balance Sheet for Strategic Investments

Cash and cash equivalents at March 31, 2015 were $18.3 million. Total debt was $15.1 million, a reduction of $1.1 million from December 31, 2014 levels.

Chairman Appointed

On May 5, 2015, Hardinge's Board of Directors voted to separate the positions of Chairman of the Board and Chief Executive Officer. As a result, John J. Perrotti was elected to succeed Richard L. Simons as Chairman of the Board. Mr. Perrotti, age 54, has served as a director of the Company since 2003 and had been serving as the Company's Lead Independent Director since 2014. Mr. Perrotti has spent over 20 years as a machine tool company executive with Gleason Corporation, a global, privately-held manufacturer of gear production equipment. He is a Director of Gleason and has served as its President and Chief Executive Officer since 2005. He has an M.B.A from the Simon School of Business at the University of Rochester.

Webcast and Conference Call

Hardinge will host a conference call and webcast today at 11:00 a.m. ET. During the conference call and webcast, Richard L. Simons, President and CEO, and Douglas J. Malone, Vice President and CFO, will review the financial and operating results for the quarter, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion. Their review will be accompanied by a slide presentation which will be available on Hardinge’s website at www.hardinge.com/ir/events.

The conference call can be accessed by calling (315) 625-6888. The listen-only audio webcast can be monitored at www.hardinge.com/ir/events.

A telephonic replay will be available from 2:00 p.m. ET the day of the call through Thursday, May 14, 2015. To listen to the archived call, dial (404) 537-3406 and enter conference ID number 24789822. Alternatively, the archive can be heard on the Company’s website at www.hardinge.com/ir/events. A transcript will also be posted to the website, once available.

About Hardinge

Hardinge is a leading global designer and manufacturer of high precision, computer-controlled machine tool solutions developed for critical, hard-to-machine metal parts and of technologically advanced workholding accessories.  The Company’s strategy is to leverage its global brand strength to further penetrate global market opportunities where customers will benefit from the technologically advanced, high quality, reliable products Hardinge produces.  With approximately two-thirds of its sales outside of North America, Hardinge serves the worldwide metal working market.  Hardinge’s machine tool and accessory solutions can alsobe found in a broad base of industries to include aerospace, agricultural, automotive, construction, consumer products, defense, energy, medical, technology and transportation. 

Hardinge applies its engineering design and manufacturing expertise inhigh performance machining centers, high-end cylindrical and jig grinding machines, SUPER-PRECISION^® and precision CNC lathes and technologically advanced workholding accessories.  Hardinge has manufacturing operations in China, France, Germany, India, Switzerland, Taiwan, the United Kingdom and the United States.   

The Company regularly posts information on its website: http://www.hardinge.com.

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Hardinge Reports First Quarter 2015 Results

May 7, 2015

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Safe Harbor Statement

This news release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Such statements are based on management's current expectations that involve risks and uncertainties. Any statements that are not statements of historical fact or that are about future events may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. The Company's actual results or outcomes and the timing of certain events may differ significantly from those discussed in any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

FINANCIAL TABLES FOLLOW.

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Hardinge Reports First Quarter 2015 Results

May 7, 2015

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HARDINGE INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except share and per share data)

	Three Months Ended   March 31,
	2015			2014
	(unaudited)
Sales	$	69,128		$	70,850
Cost of sales	50,880			51,630
Gross profit	18,248			19,220
Gross profit margin	26.4		%	27.1		%
Selling, general and administrative expenses	19,600			19,120
Other expense, net	65			391
Loss from operations	(1,417		)	(291		)
Operating margin	(2.0		)%	(0.4		)%
Interest expense	157			243
Interest income	(17		)	(20		)
Loss from continuing operations before income taxes	(1,557		)	(514		)
Income taxes	(149		)	157
Net loss from continuing operations	(1,408		)	(671		)
Gain from disposal of discontinued operation, net of tax	—			218
Net loss	$	(1,408	)	$	(453	)
Per share data:
Basic loss per share:
Continuing operations	$	(0.11	)	$	(0.05	)
Discontinued operations	—			0.01
Basic loss per share	$	(0.11	)	$	(0.04	)
Diluted loss per share:
Continuing operations	$	(0.11	)	$	(0.05	)
Discontinued operations	—			0.01
Diluted loss per share	$	(0.11	)	$	(0.04	)
Cash dividends declared per share:	$	0.02		$	0.02
Weighted avg. shares outstanding: Basic	12,742			12,499
Weighted avg. shares outstanding: Diluted	12,742			12,499

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Hardinge Reports First Quarter 2015 Results

May 7, 2015

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HARDINGE INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except share and per share data)

	March 31, 2015			December 31, 2014
	(Unaudited)
Assets
Cash and cash equivalents	$	18,300		$	16,293
Restricted cash	3,019			3,151
Accounts receivable, net	55,600			62,877
Inventories, net	116,281			111,821
Other current assets	13,818			10,545
Total current assets	207,018			204,687
Property, plant and equipment, net	65,375			65,874
Goodwill	6,718			6,698
Other intangible assets, net	29,870			30,217
Other non-current assets	4,119			3,844
Total non-current assets	106,082			106,633
Total assets	$	313,100		$	311,320
Liabilities and shareholders’ equity
Notes payable to bank	$	124		$	—
Accounts payable	27,128			25,592
Accrued expenses	22,810			25,071
Customer deposits	16,077			12,736
Accrued income taxes	1,682			646
Deferred income taxes	2,326			2,332
Current portion of long-term debt	4,247			3,972
Total current liabilities	74,394			70,349
Long-term debt	10,740			12,253
Pension and postretirement liabilities	52,558			53,119
Deferred income taxes	2,467			2,516
Other liabilities	3,548			3,487
Total non-current liabilities	69,313			71,375
Commitments and contingencies
Common stock ($0.01 par value, 20,000,000 authorized; 12,847,716 issued and outstanding as of March 31, 2015, and 12,825,468 issued and 12,821,768 outstanding as of December 31, 2014)	128			128
Additional paid-in capital	120,900			120,538
Retained earnings	86,112			87,777
Treasury shares (at cost, none as of March 31, 2015, and 3,700 as of December 31, 2014)	—			(46		)
Accumulated other comprehensive loss	(37,747		)	(38,801		)
Total shareholders’ equity	169,393			169,596
Total liabilities and shareholders’ equity	$	313,100		$	311,320

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Hardinge Reports First Quarter 2015 Results

May 7, 2015

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HARDINGE INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

	Three Months Ended   March 31,
	2015			2014
	(Unaudited)
Operating activities
Net loss	$	(1,408	)	$	(453	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,338			2,531
Debt issuance costs amortization	10			14
Deferred income taxes	(64		)	205
Loss (gain) on sale of assets	8			(42		)
Gain on sale of business	—			(218		)
Unrealized foreign currency transaction loss (gain)	1,309			(325		)
Changes in operating assets and liabilities:
Accounts receivable	6,640			5,468
Inventories	(4,821		)	1,705
Other assets	(2,605		)	(1,389		)
Accounts payable	2,083			(1,540		)
Customer deposits	3,378			(1,683		)
Accrued expenses	(3,021		)	(5,453		)
Accrued pension and postretirement liabilities	(34		)	(22		)
Net cash provided by (used in) operating activities	3,813			(1,202		)
Investing activities
Capital expenditures	(699		)	(325		)
Proceeds from sales of assets	—			48
Net cash used in investing activities	(699		)	(277		)
Financing activities
Proceeds from short-term notes payable to bank	10,212			4,455
Repayments of short-term notes payable to bank	(10,088		)	(4,455		)
Repayments of long-term debt	(1,458		)	(5,792		)
Dividends paid	(255		)	(249		)
Net proceeds from sales of common stock	—			5,202
Net cash used in financing activities	(1,589		)	(839		)
Effect of exchange rate changes on cash	482			94
Net increase (decrease) in cash	2,007			(2,224		)
Cash and cash equivalents at beginning of period	16,293			34,722
Cash and cash equivalents at end of period	$	18,300		$	32,498

-END-

EX-99.2

First Quarter 2015 Financial Results Conference Call May 7, 2015 NASDAQ: HDNG www.hardinge.com Douglas J. Malone Vice President and Chief Financial Officer Richard L. Simons President and Chief Executive Officer

© Hardinge 2015 www.hardinge.com 2 Safe Harbor Statement This presentation may contain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Any such statements are based upon management’s current expectations that involve risks and uncertainties. Any statements that are not statements of historical fact or that are about future events may be deemed to be forward-looking statements. For example, words such as “may”, “will”, “should”, “estimates”, “predicts”, “potential”, “continue”, “strategy”, “believes”, “anticipates”, “plans”, “expects”, “intends” and similar expressions are intended to identify forward-looking statements. The Company’s actual results or outcomes and the timing of certain events may differ significantly from those discussed in any forward-looking statements. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: fluctuations in the machine tool business cycles, changes in general economic conditions in the U.S. or internationally, the mix of products sold and the profit margins thereon, the relative success of the Company’s entry into new product and geographic markets, the Company’s ability to manage its operating costs, actions taken by customers such as order cancellations or reduced bookings by customers or distributors, competitor’s actions such as price discounting or new product introductions, governmental regulations and environmental matters, changes in the availability of cost of materials and supplies, the implementation of new technologies and currency fluctuations. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

© Hardinge 2015 www.hardinge.com 3 Sales ($ in millions) $90 $84 $109 $101 $104 $105 $121 $100 $103 $101 $147 $129 $120 $108 $105 2011 2012 2013 2014 Q1 2015 TTM North America Europe Asia $329 $342 $334 $23 $25 $24 $29 $26 $25 $26 $21 $31 $23 $23 $28 $24 $33 $20 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 North America Europe Asia $79 $69 Quarterly Net Sales Annual Net Sales  Q1 2015 sales were slightly less than prior-year period due to the negative impact of foreign currency translation  First quarter sales are typically negatively impacted by the Chinese Lunar New Year Actual net sales may differ due to rounding. $312 $71 $93 $69 $310

© Hardinge 2015 www.hardinge.com 4 $342 $334 $329 $312 $310 26.7% 29.0% 28.9% 27.9% 27.8% 2011 2012 2013* 2014* Q1 2015 TTM $71 $79 $69 $93 $69 27.1% 28.0% 27.1% 29.1% 26.4% Q1 2014 Q2 2014* Q3 2014 Q4 2014 Q1 2015 Gross Margin Quarterly Sales & Adjusted Gross Margin* Annual Sales & Adjusted Gross Margin* Q1 2015 gross margin was impacted by an inventory valuation adjustment and unfavorable FX translation, partially offset by improved production levels Sales ($ in millions) * Gross Margin for Q2 2014, 2013 and 2014 were adjusted to exclude atypical items. Adjusted Gross Margin is a non-GAAP measure. See supplemental slides for Adjusted Gross Margin reconciliation and other important disclaimers regarding Adjusted Gross Margin. Amounts shown pertain to continuing operations. Actual net sales may differ due to rounding.

© Hardinge 2015 www.hardinge.com 5 $342 $334 $329 $312 $310 $71 $79 $69 $93 $69 4.9% 6.1% 5.3% 1.7% 1.3% 2011 2012* 2013* 2014* Q1 2015 TTM* (0.4)% 2.2% (2.3)% 5.6% (2.0)% Q1 2014* Q2 2014* Q3 2014* Q4 2014* Q1 2015 Operating Margin Quarterly Sales & Adjusted Operating Margin* Annual Sales & Adjusted Operating Margin* Sales ($ in millions) * Operating Margin for all periods shown except for Q1 2015 and 2011 were adjusted to exclude atypical items. Adjusted Operating Margin is a non-GAAP measure. See supplemental slides for Adjusted Operating Margin reconciliation and other important disclaimers regarding Adjusted Operating Margin. Actual net sales may differ due to rounding. Q1 2015 operating margin was unfavorably impacted by an inventory valuation adjustment, investments related to the recently acquired Voumard business and expenses to support higher demand All amounts shown pertain to continuing operations.

© Hardinge 2015 www.hardinge.com 6 $342 $334 $329 $312 $310 $71 $79 $69 $93 $69 7.1% 8.3% 8.2% 4.8% 4.4% 2011 2012 2013 2014 Q1 2015 TTM 3.1% 5.4% 1.1% 8.3% 1.3% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 EBITDA Margin* Quarterly Sales & Adjusted EBITDA Margin* Annual Sales & Adjusted EBITDA Margin* Sales ($ in millions) * Adjusted EBITDA Margin is a non-GAAP financial measure. Hardinge believes that the use of Adjusted EBITDA Margin helps in the understanding of the Company’s financial results. See supplemental slides for an Adjusted EBITDA Margin reconciliation and other important disclaimers regarding Adjusted EBITDA Margin. Actual net sales may differ due to rounding. All amounts shown pertain to continuing operations. $2.2 $4.2 $0.7 $7.7 $0.9 $24.3 $26.9 $14.9 $27.9 $13.5

© Hardinge 2015 www.hardinge.com 7 $4.6 ($0.7) $1.4 ($2.7) ($1.4) Q1 2014* Q2 2014* Q3 2014* Q4 2014* Q1 2015 Quarterly Adjusted Net (Loss) Income* $12.0 $15.4 $14.9 $2.8 $2.0 2011 2012* 2013* 2014* Q1 2015 TTM* Annual Adjusted Net Income* Net (Loss) Income ($ in millions) * Net Income (Loss) for all periods shown except Q1 2015 and 2011 were adjusted to exclude atypical items. Adjusted Net Income is a non-GAAP measure. See supplemental slides for Adjusted Net Income (Loss) reconciliation and other important disclaimers regarding Adjusted Net Income (Loss). All amounts shown pertain to continuing operations.

© Hardinge 2015 www.hardinge.com 8 Geographic Diversity Creates Larger Addressable Market ($ in millions) Annual Orders $95 $79 $86 $105 $108 $120 $106 $95 $109 $112 $157 $103 $107 $117 $123 2011 2012 2013 2014 Q1 2015 TTM North America Europe Asia $331 $288 $372 $288 Quarterly Orders $24 $27 $22 $32 $27 $29 $23 $26 $31 $32 $28 $30 $27 $32 $34 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 North America Europe Asia $75 $95 $80 $81 Q1 2015 orders improved in all markets over prior-year period, driven by higher demand for grinding machines Actual orders may differ due to rounding. $93 $343

© Hardinge 2015 www.hardinge.com 9 ($ in millions) Backlog Lead times vary by product line  Grinding: six to nine months  Milling and turning: two to six months  Workholding parts and accessories: Standard - next day, Specials – four to eight weeks Backlog Drives 2015 Sales Growth Outlook $43 $45 $48 $47 $56 $47 $46 $47 $48 $61 $11 $12 $12 $10 $11 3/31/2014 6/30/2014 9/30/2014 12/31/2014 3/31/15 Grinding Milling & Turning Workholding Parts & Accessories $107 $128 $101 $103 $105

© Hardinge 2015 www.hardinge.com 10 Source: Oxford Economics Spring 2015 Global Machine Tool Outlook Report Emerging Economies Drive Demand $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Americas Europe Asia World M ac h in e T o ol C o n s u m p ti o n (i n U S $ b ill io n s ) Drivers of Machine Tool Consumption:  Older machines – technologically obsolete  Skilled machinists – shrinking supply  Emerging economies – growing middle class  Global competitiveness – advancing productivity 2014-2018 Forecast CAGR  World ~4%  Asia ~5%  Europe ~4%  Americas ~4% Oxford Economics Machine Tool Forecast $80 billion industry

© Hardinge 2015 www.hardinge.com 11 2015 Expectations  Optimistic outlook for 2015  Orders above $90 million for second consecutive quarter  Strong, growing backlog underpins growth expectation  Economists project further growth in machine tool orders  Considering seasonality, Q3 impacted by European summer vacation season

© Hardinge 2015 www.hardinge.com 12 2020 VISION Hardinge’s 2020 Vision  Capture market share with new products and improved distribution  Penetrate new industrial and geographic end markets  Participate in projected 4% compound annual growth rate of global machine tool demand  Acquire additional Aftermarket Tooling and Accessories businesses (~$60 to $80 million) EBITDA Margin: ~13% Current Strength Enables Achievement of 2020 Vision

NASDAQ: HDNG www.hardinge.com First Quarter 2015 Financial Results Conference Call May 7, 2015

NASDAQ: HDNG SUPPLEMENTAL INFORMATION www.hardinge.com

© Hardinge 2015 www.hardinge.com 15 58 57 59 61 62 2011 2012 2013 2014 Q1 2015 TTM Emphasis on Productivity and Cash Inventory Turns (Monthly Avg) Receivable Days Outstanding (Monthly Avg) * Managed Working Capital is defined as: Receivables + Inventory - Payables - Customer Deposits  At 43%, we believe our managed working capital to be in upper quartile of industry • Building up inventory ahead of expected growth year in 2015  Machine tool industry requires higher inventory to support customers’ needs 38% 41% 43% 41% 43% 2011 2012 2013 2014 Q1 2015 TTM 2.1 1.8 1.9 1.9 1.9 2011 2012 2013 2014 Q1 2015 TTM Managed Working Capital* as a Percent of Sales (Monthly Avg)

© Hardinge 2015 www.hardinge.com 16 $147.0 $161.2 $203.8 $169.6 $169.4 $21.5 $20.0 $26.6 $16.2 $15.1 2011 2012 2013 2014 3/31/2015 Equity Debt $21.7 $26.9 $34.7 $16.3 $18.3 2011 2012 2013 2014 3/31/2015 Financial Strength and Flexibility Total Capitalization ($ in millions) $19.2 $7.6 $3.9 $3.2 $6.0 2011 2012 2013 2014 2015E (1) Reflects expansion capital investments in China and Switzerland of $17.2 million in 2011 and $3.3 million in 2012 (2) Guidance provided on May 7, 2015 Cash & Cash Equivalents Capital Expenditures $168.5 $181.2 $230.4 $185.8 $184.5 Total Capitalization Q1 2015 capex was $0.7 million (1) (1) (2)

© Hardinge 2015 www.hardinge.com 17 Adjusted Gross Profit & Margin Reconciliation ($ in millions) Gross Profit and Gross Margin for 2013, 2014, Q1 2015 TTM, and Q2 2014 were adjusted to exclude atypical items as listed above. Hardinge believes that when used in conjunction with GAAP measures, Adjusted Gross Profit, which is a non-GAAP measure, assists in the understanding of Hardinge’s operating performance. Actual amounts may differ due to rounding. Q1 2015 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 TTM 2014 2014 2014 2014 2015 Sales $ 341.6 $ 334.4 $ 329.5 $ 311.6 $ 309.9 $ 70.9 $ 78.9 $ 68.9 $ 93.0 $ 69.1 Cost of sales 250.5 237.6 236.2 224.8 224.0 51.7 56.9 50.2 66.0 50.9 Gross profit 91.1 96.8 93.3 86.8 85.9 19.2 22.0 18.7 27.0 18.2 Inventory step-up charge - - 1.9 0.1 0.1 - 0.1 - - - Adjusted gross profit $ 91.1 $ 96.8 $ 95.2 $ 86.9 $ 86.0 $ 19.2 $ 22.1 $ 18.7 $ 27.0 $ 18.2 Adjusted gross margin 26.7% 29.0% 28.9% 27.9% 27.8% 27.1% 28.0% 27.1% 29.1% 26.4%

© Hardinge 2015 www.hardinge.com 18 2011 2012 2013 2014 Q1 2015 TTM Net income (loss) 12.0$ 17.9$ 9.9$ (2.1)$ (3.2)$ Impairment charges - - 6.2 5.4 5.4 Income from discontinued operations and gain on disposal of discontinued operation, net of tax - - (5.5) (0.2) - Gain on purchase of business - - - (0.5) (0.5) Inventory step-up charge - - 1.9 0.1 0.1 Acquisition transaction expenses - 0.2 2.2 0.1 0.1 Other adjustments - (2.7) 0.2 - - Adjusted net income 12.0 15.4 14.9 2.8 2.0 Plus: Interest expense, net 0.2 0.7 1.0 0.7 0.6 Adjusted income tax expense 4.4 4.3 1.4 1.6 1.4 Adjusted operating income 16.6 20.4 17.3 5.1 3.9 Depreciation and amortization expense 7.7 7.5 9.6 9.8 9.6 Adjusted EBITDA 24.3$ 27.9$ 26.9$ 14.9$ 13.5$ Sales $341.6 $334.4 $329.5 $311.6 309.9 Adjusted operating margin 4.9% 6.1% 5.3% 1.7% 1.3% Adjusted EBITDA margin 7.1% 8.3% 8.2% 4.8% 4.4% Annual Adjusted Net Income, Operating Income & Margin and EBITDA & Margin Net Income (Loss), Operating Income, Operating Margin, EBITDA and EBITDA Margin in 2012, 2013 and 2014 and Q1 2015 TTM were adjusted to exclude atypical items as listed above. Hardinge believes that when used in conjunction with GAAP measures, Adjusted Net (Loss) Income, Adjusted Operating (Loss) Income and Adjusted EBITDA, which are non-GAAP measures, assist in the understanding of Hardinge’s operating performance. Actual amounts may differ due to rounding. ($ in millions)

© Hardinge 2015 www.hardinge.com 19 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Net (loss) income (0.5)$ 1.3$ (7.6)$ 4.5$ (1.4)$ Impairment charges - - 5.4 - - Gain on disposal of discontinued operation, net of tax (0.2) - - - - Gain on purchase of business - - (0.5) - - Inventory step-up charge - 0.1 - - - Acquisition transaction expenses - - - 0.1 - Adjusted net (loss) income (0.7) 1.4 (2.7) 4.6 (1.4) Plus: Interest expense, net 0.2 0.1 0.2 0.2 0.1 Adjusted income tax expense 0.2 0.2 0.9 0.4 (0.1) Adjusted operating (loss) income (0.3) 1.7 (1.6) 5.2 (1.4) Depreciation and amortization expense 2.5 2.5 2.3 2.5 2.3 Adjusted EBITDA 2.2$ 4.2$ 0.7$ 7.7$ 0.9$ Sales 70.9 78.9 68.9 93.0 69.1 Adjusted operating margin (0.4)% 2.2 % (2.3)% 5.6 % (2.0)% Adjusted EBITDA margin 3.1 % 5.4 % 1.1 % 8.3 % 1.3 % Quarterly Adjusted Net (Loss) Income, Operating (Loss) Income & Margin and EBITDA & Margin ($ in millions) Quarterly Net (Loss) Income, Operating (Loss) Income, Operating Margin, EBITDA and EBITDA Margin in Q1 2014, Q2 2014, Q3 2014 and Q4 2014 were adjusted to exclude atypical items as listed above. Hardinge believes that when used in conjunction with GAAP measures, Adjusted Net (Loss) Income , Adjusted Operating (Loss) Income and Adjusted EBITDA, which are non-GAAP measures, assist in the understanding of Hardinge’s operating performance. Actual amounts may differ due to rounding.

© Hardinge 2015 www.hardinge.com 20 6/30/2013 9/30/2013 12/31/2013 3/31/2014 6/30/2014 9/30/2014 12/31/2014 3/31/2015 Sales 79.4$ 79.8$ 103.1$ 70.9$ 78.9$ 68.9$ 93.0$ 69.1$ Cost of sales 56.6 57.7 73.7 51.7 56.9 50.2 66.0 50.9 Gross profit 22.8 22.1 29.4 19.2 22.0 18.7 27.0 18.2 Gross profit margin 28.7% 27.7% 28.6% 27.1% 27.9% 27.1% 29.1% 26.4% Selling, general and administrative expenses 20.0 19.6 21.8 19.1 20.1 20.1 21.7 19.6 Impairment charges - - 6.2 - - 5.8 - - Other expense (income) 0.1 (0.1) 0.1 0.4 0.3 (0.3) 0.2 - Income (loss) from operations 2.7 2.6 1.3 (0.3) 1.6 (6.9) 5.1 (1.4) Operating margin 3.4 % 3.2 % 1.3 % (0.4)% 2.1 % (10.0)% 5.5 % (2.0)% Interest expense, net 0.3 0.3 0.3 0.2 0.1 0.2 0.2 0.1 Income (loss) from continuing operations before income taxes 2.4 2.3 1.0 (0.5) 1.5 (7.1) 4.9 (1.5) Income tax expense (benefit) 0.3 1.1 (0.1) 0.2 0.2 0.5 0.4 (0.1) Income (loss) from continuing operations 2.1$ 1.2$ 1.1$ (0.7)$ 1.3$ (7.6)$ 4.5$ (1.4)$ Income from discontinued operations, and gain from disposal of discontinued operation, net of tax 0.2 0.3 5.0 0.2 - - - - Net income (loss) 2.3$ 1.5$ 6.1$ (0.5)$ 1.3$ (7.6)$ 4.5$ (1.4)$ Basic earnings (loss) per share Continuing operations 0.18$ 0.10$ 0.09$ (0.05)$ 0.11$ (0.60)$ 0.36$ (0.11)$ Discontinued operations 0.01 0.03 0.41 0.01 - - - - Earnings (loss) per share 0.19$ 0.13$ 0.50$ (0.04)$ 0.11$ (0.60)$ 0.36$ (0.11)$ Diluted earnings (loss) per share Continuing operations 0.18$ 0.10$ 0.09$ (0.05)$ 0.11$ (0.60)$ 0.35$ (0.11)$ Discontinued operations 0.01 0.03 0.41 0.01 - - - - Earnings (loss) per share 0.19$ 0.13$ 0.50$ (0.04)$ 0.11$ (0.60)$ 0.35$ (0.11)$ Cash dividends declared per share 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ Weighted avg. shares outstanding: Basic 11.7 11.7 12.2 12.5 12.7 12.7 12.7 12.7 Weighted avg. shares outstanding: Diluted 11.8 11.8 12.3 12.5 12.8 12.7 12.8 12.7 Quarter Ended Quarterly Financial Appendix Actual amounts may differ due to rounding. (in millions, except per share data)