Document

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 9, 2017

(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)

(Registrant’s telephone number, including area code)

(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 February 9, 2017, Hardinge Inc. (the “Company”) issued a press release announcing the Company’s fourth quarter and full year 2016 financial results. Copies of the press release and the supplemental slides posted to the Company’s website are respectively included as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K. On February 7, 2017, 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 March 10, 2017 to stockholders of record at the close of business on March 1, 2017.

Item 9.01 Financial Statements and Exhibits.



EXHIBIT NUMBER		DESCRIPTION
99.1		Press release issued by the Company on February 9, 2017 announcing fourth quarter and full year 2016 results.
99.2		Supplemental slides posted to the Company's website.

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	February 9, 2017
		/s/ Douglas J. Malone
		Douglas J. Malone Vice President and Chief Financial Officer

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

Hardinge Reports Fourth Quarter and Full Year 2016 Results

ELMIRA, N.Y., February 9, 2017 - Hardinge Inc. (NASDAQ: HDNG), a leading international provider of advanced metal-cutting solutions and accessories, reported financial results for its fourth quarter and year ended December 31, 2016.

Orders for the fourth quarter increased 22% to $90.4 million compared with the prior-year period on strength in all regions: Europe up 37%, Asia up 26% and North America up 4%

Sales for the quarter were $86.8 million and demonstrated a measurable improvement over the previous three quarters of 2016

Net income for the quarter was $3.7 million, or $0.29 per diluted share; Non-GAAP⁽¹⁾ adjusted net income was $4.1 million, or $0.31 per diluted share

Richard L. Simons, President and Chief Executive Officer, commented, “We ended 2016 in a much better position than where we started. Market conditions are improving with the order trend in the second half of 2016 healthier than the first half. The restructuring program we worked on most of the year has also proven successful. It was accomplished on time and on budget and, importantly, is achieving our cost reduction goals.”

He concluded, “Based on our strong backlog and favorable outlook, we expect sales to moderately improve in 2017. Additionally, we are confident that the effects of our restructuring program will be demonstrated in our financial results.”

⁽¹⁾Management believes that the use of non-GAAP financial measures help in the understanding of the Company's operating performance. See pages 9 and 10 of this release for the reconciliation tables between reported amounts and non-GAAP measures discussed in this document.

Hardinge Reports Fourth Quarter 2016 Results

February 9, 2017

Page 2 of 10

Sales, Orders and Backlog for the Quarter and Full Year

(Please refer to the Sales and Orders tables included in this release)

North America: Market conditions in the U.S. have begun to improve. North America sales were up 5% in the quarter, while orders increased by 4%. For the full year, sales were down 15% reflecting the weak industrial economy over the last two years. Orders, however, improved by 3% over 2015 as the inquiry activity in the U.S. was higher in the second half of 2016.

Europe: Political uncertainty in Europe contributed to a 12% decline in sales during the fourth quarter. For the full year, Europe sales were down 6%. Excluding the $2.0 million negative impact from foreign currency translation, sales were down 4% in 2016. Encouragingly, orders in the fourth quarter increased by 37%. For the full year, orders were down 5%, partly due to unfavorable foreign currency effect.

Asia: While Asia’s rate of economic growth remains softer than it has in the past, activity in the second half of 2016 also strengthened in this market. Fourth quarter sales improved by 8%. The Company believes the increase was related to the positive impact of its focus on industries and customers that favor high-precision products and custom solutions combined with improving market conditions. Orders for the quarter of $36.8 million, up 26% over the prior-year period, reached their highest level since 2011. Sales to Asia for the full year 2016 were relatively unchanged and orders for the full year were down 3%; however, after adjusting for the impact of foreign exchange, both sales and orders increased in 2016.

Consolidated Backlog: Order backlog at December 31, 2016 was $117.0 million, down slightly from the end of the trailing third quarter, but up 15% over the December 31, 2015 backlog.

Fourth Quarter Operating Results (comparisons are to the prior-year period except where noted)

Gross profit for the quarter was $28.1 million, or 32.4% of sales, down from the prior-year period due to the mix of sales which included fewer specialized machine tool solutions

Selling, general and administrative (“SG&A”) expense declined $1.3 million, or 6%, from savings realized from the recently completed restructuring program and the favorable impact of foreign exchange

Income from operations was $5.0 million. On a non-GAAP⁽¹⁾ adjusted basis, income from operations was $5.3 million compared with $6.3 million last year. As a percent of sales, adjusted income from operations was 6.1%.

2016 Full Year Review (comparisons are to the prior-year period except where noted)

Gross margin of 33.4% was relatively unchanged

The impact of lower sales volume and less favorable product mix was more than offset by reduced costs

SG&A was down $1.6 million to $79.6 million

Hardinge Reports Fourth Quarter 2016 Results

February 9, 2017

Page 3 of 10

SG&A had a favorable foreign currency impact of approximately $2.1 million and was unfavorably impacted by $1.8 million in additional expenses related to severance and the Company’s strategic review initiative

Excluding those aforementioned items, 2016 SG&A decreased by $1.3 million, mostly as a result of savings from the recently completed restructuring program

Restructuring expenses in 2016 were $0.7 million compared with $3.6 million in 2015.

Income from operations was $3.4 million. Non-GAAP⁽¹⁾adjusted income from operations declined on lower sales to $6.6 million, or 2.2% of sales, compared with $9.9 million, or 3.1% of sales, in 2015.

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. Supplemental slides will be made available on Hardinge’s website at http://ir.hardinge.com/events.cfm.

The conference call can be accessed by calling (201) 689-8560. The listen-only audio webcast can be monitored at http://ir.hardinge.com/events.cfm.

A telephonic replay will be available from 2:00 p.m. ET today through Thursday February 16, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13654118. Alternatively, the archive can be heard on the Company’s website at http://ir.hardinge.com/events.cfm. A transcript will also be posted to the website, once available.

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 also be 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 in high 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.

Hardinge Reports Fourth Quarter 2016 Results

February 9, 2017

Page 4 of 10

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

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.



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

FINANCIAL TABLES FOLLOW.

Hardinge Reports Fourth Quarter 2016 Results

February 9, 2017

Page 5 of 10

HARDINGE INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share data)



	Three Months Ended December 31,						Year Ended December 31,
	2016			2015			2016			2015
	(unaudited)

Sales	$	86,795		$	86,960		$	292,013		$	315,249
Cost of sales	58,716			56,608			194,486			210,711
Gross profit	28,079			30,352			97,527			104,538
Gross profit margin	32.4		%	34.9		%	33.4		%	33.2		%

Selling, general and administrative expenses	19,426			20,675			79,647			81,271
Research & development	3,561			3,425			13,514			14,140
Restructuring charges	53			2,681			661			3,558
Other expense, net	61			356			310			632
Operating Income	4,978			3,215			3,395			4,937
Operating margin	5.7		%	3.7		%	1.2		%	1.6		%

Interest expense	128			183			555			655
Interest income	(35		)	(76		)	(227		)	(156		)
Income before income taxes	4,885			3,108			3,067			4,438
Income taxes	1,177			349			1,843			1,828

Net income	$	3,708		$	2,759		$	1,224		$	2,610

Per share data:
Basic earnings per share:	$	0.29		$	0.22		$	0.10		$	0.20

Diluted earnings per share:	$	0.29		$	0.21		$	0.09		$	0.20

Cash dividends declared per share:	$	0.02		$	0.02		$	0.08		$	0.08

Weighted avg. shares outstanding: Basic	12,854			12,793			12,824			12,776
Weighted avg. shares outstanding: Diluted	12,923			12,886			12,909			12,872

Hardinge Reports Fourth Quarter 2016 Results

February 9, 2017

Page 6 of 10

HARDINGE INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except share and per share data)



	December 31, 2016			December 31, 2015

Assets
Cash and cash equivalents	$	28,255		$	32,774
Restricted cash	2,923			2,192
Accounts receivable, net	55,573			56,945
Inventories, net	107,018			110,232
Other current assets	6,926			7,212
Total current assets	200,695			209,355

Property, plant and equipment, net	56,961			62,025
Goodwill	6,579			6,620
Other intangible assets, net	26,730			28,018
Other non-current assets	6,585			4,920
Total non-current assets	96,855			101,583
Total assets	$	297,550		$	310,938

Liabilities and shareholders’ equity
Accounts payable	$	24,920		$	24,696
Accrued expenses	25,629			27,964
Customer deposits	18,215			19,845
Accrued income taxes	1,160			1,919
Current portion of long-term debt	2,923			5,621
Total current liabilities	72,847			80,045

Long-term debt	2,970			5,985
Pension and postretirement liabilities	58,840			57,322
Deferred income taxes	3,800			3,088
Other liabilities	3,152			3,393
Total non-current liabilities	68,762			69,788
Commitments and contingencies
Common stock ($0.01 par value, 20,000,000 authorized; 12,903,037 issued and 12,893,794 outstanding as of December 31, 2016, and 12,856,716 issued and 12,838,227 outstanding as of December 31, 2015)	129			128
Additional paid-in capital	121,015			120,524
Retained earnings	89,557			89,368
Treasury shares (at cost, 9,243 as of December 31, 2016, and 18,489 as of December 31, 2015)	(104		)	(202		)
Accumulated other comprehensive loss	(54,656		)	(48,713		)
Total shareholders’ equity	155,941			161,105
Total liabilities and shareholders’ equity	$	297,550		$	310,938

Hardinge Reports Fourth Quarter 2016 Results

February 9, 2017

Page 7 of 10

HARDINGE INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows



	Year Ended
	December 31, 2016			December 31, 2015
Operating activities
Net income	$	1,224		$	2,610
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,789			8,824
Debt issuance costs amortization	131			134
Deferred income taxes	689			(768		)
Gain on sale of assets	(38		)	(26		)
Unrealized foreign currency transaction loss	524			404
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable	(284		)	3,942
Restricted cash	(927		)	827
Inventories	252			(1,442		)
Other assets	(372		)	834
Accounts payable	141			450
Customer deposits	(776		)	7,762
Accrued expenses	(3,964		)	3,250
Accrued pension and postretirement liabilities	(92		)	(74		)
Net cash provided by operating activities	5,297			26,727

Investing activities
Capital expenditures	(2,479		)	(4,210		)
Proceeds from sales of assets	118			69
Net cash used in investing activities	(2,361		)	(4,141		)

Financing activities
Proceeds from short-term notes payable to bank	42,820			32,502
Repayments of short-term notes payable to bank	(42,114		)	(32,502		)
Repayments of long-term debt	(5,761		)	(4,464		)
Dividends paid	(1,052		)	(1,037		)
Purchases of treasury stock	(368		)	(201		)
Net cash used in financing activities	(6,475		)	(5,702		)

Effect of exchange rate changes on cash	(980		)	(403		)
Net (decrease) increase in cash	(4,519		)	16,481

Cash and cash equivalents at beginning of period	32,774			16,293

Cash and cash equivalents at end of period	$	28,255		$	32,774

Hardinge Reports Fourth Quarter 2016 Results

February 9, 2017

Page 8 of 10

HARDINGE INC. AND SUBSIDIARIES



	Quarter Ended
	December 31, 2016		December 31, 2015		September 30, 2016
Sales to Customers in	$	% of Total	$	Year-over-Year % Change	$	Sequential % Change
North America	29,744	34%	28,431	5%	24,780	20%
Europe	27,026	31%	30,716	(12)%	18,271	48%
Asia	30,025	35%	27,813	8%	24,160	24%
Total	86,795		86,960	-%	67,211	29%



	Twelve months ended
	December 31, 2016		December 31, 2015
Sales to Customers in	$	% of Total	$	Year-over-Year % Change
North America	92,668	32%	108,470	(15)%
Europe	91,381	31%	97,269	(6)%
Asia	107,964	37%	109,510	(1)%
Total	292,013		315,249	(7)%

HARDINGE INC. AND SUBSIDIARIES



	Quarter Ended
	December 31, 2016		December 31, 2015		September 30, 2016
Orders from Customers in	$	% of Total	$	Year-over-Year % Change	$	Sequential % Change
North America	25,378	28%	24,305	4%	26,740	(5)%
Europe	28,248	31%	20,610	37%	20,412	38%
Asia	36,778	41%	29,133	26%	27,457	34%
Total	90,404		74,048	22%	74,609	21%



	Twelve months ended
	December 31, 2016		December 31, 2015
Orders from Customers in	$	% of Total	$	Year-over-Year % Change
North America	101,541	33%	98,809	3%
Europe	92,648	30%	97,223	(5)%
Asia	116,683	37%	120,045	(3)%
Total	310,872		316,077	(2)%

Hardinge Reports Fourth Quarter 2016 Results

February 9, 2017

Page 9 of 10

Hardinge believes that providing non-GAAP financial measures such as adjusted operating income, adjusted net income, and adjusted earnings per diluted share is important for investors and other readers of Hardinge's financial statements, as they are used as an analytical indicator by Hardinge management to better understand its operating performance.

HARDINGE INC. AND SUBSIDIARIES

Reconciliation of GAAP Operating Income to Non-GAAP Operating Income



	Three Months Ended December 31, 2016					Three Months Ended December 31, 2015
	Amount			% of Sales		Amount		% of Sales
Operating income as reported	$	4,978		5.7	%	$	3,215	3.7	%
Adjustments to reported operating income:
Restructuring charges	53			0.1		2,681		3.1
Professional fees for strategic review process	42			0.1		414		0.4
Pension settlement adjustment	(132		)	(0.2	)	—		—
Other adjustments	371			0.4		—		—
Non-GAAP operating income as adjusted	$	5,312		6.1	%	$	6,310	7.2	%

	Year Ended December 31, 2016					Year Ended December 31, 2015
	Amount			% of Sales		Amount		% of Sales
Operating income as reported	$	3,395		1.2	%	$	4,937	1.6	%
Adjustments to reported operating income:
Restructuring charges	661			0.2		3,558		1.1
Professional fees for strategic review process	1,270			0.4		756		0.2
Pension settlement adjustment	633			0.2		—		—
Inventory adjustment	—			—		679		0.2
Other adjustments	666			0.2		—		—
Non-GAAP operating income as adjusted	$	6,625		2.2	%	$	9,930	3.1	%

Hardinge Reports Fourth Quarter 2016 Results

February 9, 2017

Page 10 of 10

HARDINGE INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income to Non-GAAP Net Income

(in thousands, except per share data)



	Three Months Ended December 31, 2016						Three Months Ended December 31, 2015
	Amount			EPS			Amount		EPS

Net income as reported	$	3,708		$	0.29		$	2,759	$	0.21
Adjustments to reported net income, net of taxes:
Restructuring charges	53			—			2,681		0.21
Professional fees for strategic review process	42			—			414		0.03
Pension settlement adjustment	(108		)	(0.01		)	—		—
Other adjustments	371			0.03			—		—
Non-GAAP net income as adjusted	$	4,066		$	0.31		$	5,854	$	0.45

	Year Ended December 31, 2016						Year Ended December 31, 2015
	Amount			EPS			Amount		EPS

Net income as reported	$	1,224		$	0.09		$	2,610	$	0.20
Adjustments to reported net income, net of taxes:
Restructuring charges	661			0.05			3,558		0.28
Professional fees for strategic review process	1,270			0.10			756		0.06
Pension settlement adjustment	517			0.04			—		—
Inventory adjustment	—			—			679		0.05
Other adjustments	666			0.05			—		—
Non-GAAP net income as adjusted	$	4,338		$	0.33		$	7,603	$	0.59

© 2017 Hardinge Inc. 2 www.Hardinge.com 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.

© 2017 Hardinge Inc. 3 www.Hardinge.com Sales ($ in millions) $84 $109 $101 $108 $93 $121 $100 $103 $97 $91 129 $120 $108 $110 $108 2012 2013 2014 2015 2016 $315 $292 $312 $334 $329 $28 $17 $21 $25 $30 $31 $24 $22 $18 $27 $28 $27 $27 $24 $30 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Quarterly Net Sales Annual Net Sales  FX translation unfavorable impact: $2.1 million in Q4 2016; $6.9 million in 2016  Asia and North America strength offset Europe weakness in Q4 2016 versus prior year  2016 reflects slow start to the year Actual net sales may differ due to rounding. $68 $70 $67 $87 North America Europe Asia $87

© 2017 Hardinge Inc. 4 www.Hardinge.com $30.4 $22.7 $23.6 $23.2 $28.1 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Gross Profit & Margin Quarterly Annual  Sales mix including a higher concentration of less specialized machine tool solutions impacted Q4 2016 gross margin  2016 gross margin highest in 5 years, reflecting benefit of 2015-2016 restructuring $109.1 $105.7 $100.8 $104.6 $97.5 2012 2013 2014 2015 2016 34.9% 33.5% 33.6% 34.4% 32.6% 32.1% 32.3% 33.2% 33.4% All amounts shown pertain to continuing operations. 32.4%

© 2017 Hardinge Inc. 5 www.Hardinge.com $17.9 $9.9 $2.6 $1.2 $15.4 $14.9 $2.8 $7.7 $4.4 $2.7 ($0.2) $5.9 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 ($0.3) $3.7 ($1.2) ($1.4) $4.2 ($2.1) 2012 2013 2014 2015 2016 Quarterly Net Income (Loss) Reported & Adjusted* Annual Net Income (Loss) Reported & Adjusted* Net Income (Loss) ($ in millions) * Adjusted Net Income (Loss) is a non-GAAP financial measure. Hardinge believes that the use of Adjusted Net Income (Loss) helps in the understanding of the Company’s financial results. See supplemental slides for an Adjusted Net Income (Loss) reconciliation and other important disclaimers. All amounts shown pertain to continuing operations. $0.7 GAAP NON-GAAP * * * * * * * * * * $0.1

© 2017 Hardinge Inc. 6 www.Hardinge.com $27.9 $26.9 $14.9 $18.8 $15.7 2012 2013 2014 2015 2016 $8.2 $2.0 $3.1 $2.9 $7.7 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 EBITDA and Margin* Adjusted EBITDA & Margin* Adjusted EBITDA & Margin* * Adjusted EBITDA & Margin are non-GAAP financial measures. 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. All amounts shown pertain to continuing operations. 8.3% 8.2% 4.8% 6.0% 5.4% 9.4% 2.9% 4.4% 4.3% 8.9%

© 2017 Hardinge Inc. 7 www.Hardinge.com ($ in millions) Annual Orders $79 $86 $105 $99 $102 $106 $95 $109 $97 $92 $103 $107 $117 $120 $117 2012 2013 2014 2015 2016 $331 $288 $288 Quarterly Orders $25 $24 $26 $27 $25 $20 $17 $27 $20 $28 $29 $24 $28 $28 $37 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 $81 $75  Quarterly orders trending upwards from early 2016 bottom; Q4 2016 orders up 22% from Q4 2015:  Europe +37%, Asia +26%, North America +4%  2016 orders reflect weaker first half compared with prior year Actual orders may differ due to rounding. $316 $74 Geographic Diversity $65 $311 North America Europe Asia $90

© 2017 Hardinge Inc. 8 www.Hardinge.com ($ in millions) Backlog  Growing grinding machine backlog expected to benefit 2017  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 $46 $45 $58 $64 $57 $48 $46 $41 $43 $51 $8 $10 $11 $10 $9 12/31/2015 3/31/2016 6/30/2016 9/30/2016 12/31/2016 Grinding Milling & Turning Workholding Parts & Accessories $102 Backlog by Product Line $101 $110 $117 $117

© 2017 Hardinge Inc. 9 www.Hardinge.com Source: Oxford Economics Autumn 2016 Global Machine Tool Outlook Report $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Americas Europe Asia World M ach in e To o l C o n su m p ti o n (in U S$ b ill io n s) Oxford Economics Machine Tool Forecast Machine tool industry - $80 billion Drivers of Machine Tool Consumption:  Emerging economies - growing middle class  Obsolescence - older machines technologically outdated  Automation - shrinking supply of skilled machinists  Global competitiveness - advancing productivity Expect moderate long-term demand growth ~3% Emerging Economies Drive Demand China driving global growth

© 2017 Hardinge Inc. 10 www.Hardinge.com 2017 Outlook  Expecting moderate sales growth in 2017  Solid order activity across all product lines  Backlog exiting 2016 points to improved 2017 revenue  EBITDA will reflect full year of post 2015-2016 restructuring cost savings

© 2017 Hardinge Inc. 13 www.Hardinge.com Annual Adjusted Net Income, Operating Income & Margin and EBITDA & Margin Net Income (Loss), Operating Income, Operating Margin, EBITDA and EBITDA Margin in 2012, 2013, 2014, 2015 and 2016 were adjusted to exclude atypical items as listed above. Hardinge believes that when used in conjunction with GAAP measures, Adjusted Net Income, Adjusted Operating 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) 2012 2013 2014 2015 2016 Net income (loss) 17.9$ 9.9$ (2.1)$ 2.6$ 1.2$ Impairment charges - 6.2 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) - - Inventory adjustment - - - 0.7 - Inventory step-up charge - 1.9 0.1 - - Acquisition transaction expenses 0.2 2.2 0.1 - - Restructuring expenses - - - 3.6 0.7 Professional fees for strategic review process - - - 0.8 1.3 Pension Settlement Loss - - - - 0.5 Other adjustments (2.7) 0.2 - - 0.7 Adjusted net income 15.4 14.9 2.8 7.7 4.4 Plus: Interest expense, net 0.7 1.0 0.7 0.4 0.4 Adjusted income tax expense 4.3 1.4 1.6 1.9 2.1 Adjusted operating income 20.4 17.3 5.1 10.0 6.9 Depreciation and amortization expense 7.5 9.6 9.8 8.8 8.8 Adjusted EBITDA 27.9$ 26.9$ 14.9$ 18.8$ 15.7$ Sales $334.4 $329.5 $311.6 315.3$ 292.0$ Adjusted operating margin 6.1% 5.3% 1.7% 3.2% 2.4% Adjusted EBITDA margin 8.3% 8.2% 4.8% 6.0% 5.4%

© 2017 Hardinge Inc. 14 www.Hardinge.com Quarterly Adjusted Net Income (Loss), Operating Income (Loss) & Margin and EBITDA & Margin Quarterly Net Income (Loss) , Operating Income (Loss) , Operating Margin, EBITDA and EBITDA Margin in all periods presented were adjusted to exclude atypical items as listed above. Hardinge believes that when used in conjunction with GAAP measures, Adjusted Net Income (Loss), Adjusted Operating Income (Loss) 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) Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Net income (loss) 2.7$ (1.2)$ 0.1$ (1.4)$ 3.7$ Restructuring expenses 2.7 0.2 0.2 0.2 0.1 Professional fees for strategic review process 0.5 0.7 0.4 0.1 0.1 Pension Settlement Loss - - - 0.6 (0.1) Other adjustments - 0.1 - 0.2 0.4 Adjusted net income (loss) 5.9 (0.2) 0.7 (0.3) 4.2 Plus: Interest expense, net 0.1 0.1 0.1 0.1 0.1 Adjusted income tax expense (benefit) 0.4 (0.1) 0.1 0.9 1.2 Adjusted operating income (loss) 6.4 (0.2) 0.9 0.7 5.5 Depreciation and amortization expense 1.8 2.2 2.2 2.2 2.2 Adjusted EBITDA 8.2$ 2.0$ 3.1$ 2.9$ 7.7$ Sales 87.0 67.8 70.2 67.2 86.8 Adjusted operating margin 7.4 % (0.3)% 1.3 % 1.0 % 6.3 % Adjusted EBITDA margin 9.4 % 2.9 % 4.4 % 4.3 % 8.9 %

© 2017 Hardinge Inc. 15 www.Hardinge.com (in millions, except per share data) Quarterly Financial Appendix Actual amounts may differ due to rounding. 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 12/31/2016 Sales 69.1$ 82.4$ 76.8$ 87.0$ 67.8$ 70.2$ 67.2$ 86.8$ Cost of sales 47.3 55.4 51.4 56.6 45.1 46.6 44.0 58.7 Gross profit 21.8 27.0 25.4 30.4 22.7 23.6 23.2 28.1 Gross profit margin 31.6% 32.8% 33.1% 34.9% 33.5% 33.6% 34.4% 32.4% Selling, general and administrative expenses 19.6 21.1 19.9 20.7 20.5 19.7 20.0 19.3 Research & development 3.6 3.5 3.7 3.4 3.3 3.4 3.3 3.6 Restructuring charges - - 0.9 2.7 0.2 0.2 0.2 0.1 Other expense (income) - - 0.2 0.4 (0.1) - 0.3 0.1 Operating (loss) income (1.4) 2.4 0.7 3.2 (1.2) 0.3 (0.6) 5.0 Operating margin (2.0)% 2.9 % 1.0 % 3.7 % (1.8)% 0.4 % (0.9)% 5.8 % Interest expense, net 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 (Loss) income before income taxes (1.5) 2.3 0.6 3.1 (1.3) 0.2 (0.7) 4.9 Income tax expense (benefit) (0.1) 0.7 0.9 0.4 (0.1) 0.1 0.7 1.2 Net (loss) income (1.4)$ 1.6$ (0.3)$ 2.7$ (1.2)$ 0.1$ (1.4)$ 3.7$ Basic earnings (loss) per share: (Loss) earnings per share (0.11)$ 0.12$ (0.03)$ 0.22$ (0.10)$ 0.01$ (0.11)$ 0.29$ Diluted earnings (loss) per share: (Loss) earnings per share (0.11)$ 0.12$ (0.03)$ 0.21$ (0.10)$ 0.01$ (0.11)$ 0.29$ 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 12.7 12.8 12.8 12.8 12.8 12.8 12.8 12.9 Weighted avg. shares outstanding: Diluted 12.7 12.9 12.8 12.9 12.8 12.9 12.8 12.9

© 2017 Hardinge Inc. 16 www.Hardinge.com $161.2 $203.6 $169.6 $161.1 $155.9 $20.0 $26.6 $16.2 $11.8 $5.9 2012 2013 2014 2015 2016 Equity Debt $26.9 $34.7 $16.3 $32.8 $28.3 2012 2013 2014 2015 2016 Total Capitalization ($ in millions) $7.6 $3.9 $3.2 $4.2 $2.5 2012 2013 2014 2015 2016 (1) Reflects expansion capital investments in China and Switzerland of $3.3 million in 2012 Cash & Cash Equivalents Capital Expenditures (1) Financial Strength and Flexibility

© 2017 Hardinge Inc. 17 www.Hardinge.com 57 59 61 61 61 2012 2013 2014 2015 2016 Inventory Turns (monthly avg.) Receivable Days Outstanding (monthly avg.) * Managed Working Capital is defined as: Receivables + Inventory - Payables - Customer Deposits 41% 43% 42% 40% 42% 2012 2013 2014 2015 2016 1.7 1.7 1.8 1.8 1.6 2012 2013 2014 2015 2016 Managed Working Capital* as a Percent of Sales (monthly avg.) Emphasis on Productivity and Cash  Managed working capital at 42% of sales: upper quartile in industry  Machine tool industry requires higher levels of inventory to support customers needs



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