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):    August 24, 2016          

THE L.S. STARRETT COMPANY

(Exact name of registrant as specified in its charter)

Massachusetts	1-367	04-1866480
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

121 CRESCENT STREET, ATHOL, MASSACHUSETTS 01331

(Address of principal executive offices) (Zip Code)

Registrant's telephone number:

978-249-3551

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:

[ ] 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 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)

ITEM 2.02 Result of Operations and Financial Condition

On August 24, 2016, The L. S. Starrett Company announced its fiscal 2016 fourth quarter and full year results. A press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

Exhibit No.	Description
99.1	Press Release of The L. S. Starrett Company dated August 24, 2016

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 L.S. STARRETT COMPANY
Dated: August 24, 2016	By: /s/ Douglas A. Starrett
	Name: Douglas A. Starrett
	Title: President and Chief Executive Officer

EX-99.1

Exhibit 99.1

Starrett

The L. S. Starrett Company Reports Fiscal 2016 Fourth Quarter and Full Year Results

Athol, Massachusetts U. S. A. (August 24, 2016) (Business Wire)-The L. S. Starrett Company today reported fiscal 2016 fourth quarter and full year financial results for the periods ended June 30, 2016.

L. S. Starrett, as a global company, was negatively impacted by political, economic and currency issues during fiscal 2016. The recession, corruption and currency problems in Brazil significantly reduced the sales and profits of our largest international subsidiary compared to fiscal 2015. The slowdown in China and stagnation in Europe resulted in lower sales compared to fiscal 2015 in both regions, while low oil prices in North America significantly reduced demand from our oil industry customers.

The financial markets also reduced earnings in fiscal 2016 as the flight to safety increased the demand for bonds and the associated decrease in interest rates, which resulted in $17.5 million non-cash pension expense based upon higher liabilities. The pension liability is based upon the ten year Corporate Bond Rate and is set on the last day of the fiscal year. This accounting requirement of valuing liabilities on the last day of the fiscal year coupled with the volatility of interest rates resulted in fourth quarter financial variations which management cannot control. The pension discount rate as of June 30, 2016 was 3.77% compared to 4.00% at the end of May and 4.45% at the end of June 2015.

In addition, due to excess saw manufacturing capacity, the Company decided to reduce its manufacturing footprint resulting in a $4.1 million non-cash charge in the fourth quarter of fiscal 2016.

The table below illustrates the impact of the non-cash pension and asset impairment charges in the fourth quarter and full year under GAAP and NON-GAAP financial reporting. There were no comparable adjustments to the fiscal 2015 financial presentation.

	$(Millions)
	Fourth Quarter													Annual
	FY 2016			Pension		Facility		FY 2016			FY 2015			FY 2016			Pension		Facility		FY 2016			FY 2015
	GAAP			Adj.		Impairment		Non-GAAP			GAAP			GAAP			Adj.		Impairment		Non-GAAP			GAAP
Net Sales	$	54.7							54.7		$	61.4		$	209.7							209.7		$	241.6
Gross Margin		0.4			14.2				14.6			16.7			47.0			14.2				61.2			76.7
% of Sales		0.7	%						26.7	%		27.2	%		22.4	%						29.2	%		31.7	%
S,G&A Expenses	19.0				3.3				15.7			16.0			63.3			3.3				60.0			68.1
Asset Impairment							4.1													4.1
Tax Expense/(Benefit)		-8.0			5.3		1.2		-1.5			0.9			-6.2			5.3		1.2		0.3			4.7
Net Earnings (Loss)	$	(15.0	)		12.2		2.9	$	0.4		$	(0.6	)	$	(14.1	)		12.2		2.9	$	0.9		$	5.2
Earnings (Loss) per share	$	(2.14	)					$	0.06		$	(0.08	)	$	(2.01	)					$	0.13		$	0.75