(Source: Business Wire)The Eastern Company (NYSE Amex - EML) today announced the results of its operations for the first quarter of 2009. Sales for the quarter were $28.4 million, compared to $32.9 million for the same period in 2008, a 14% decrease. The net loss for the first quarter was $(1.1) million, or $(0.18) per diluted share, compared to a profit of $1.2 million, or $0.20 per diluted share that was reported in the same quarter of 2008.

Leonard F. Leganza, Chairman, President and CEO stated, "The erosion in the global economy during 2008 continued to affect us in the first quarter of 2009. We experienced sales decreases in all of our primary markets except for military and mining markets where sales were up 109% and 52%, respectively. Especially hard hit in the quarter were the markets of vehicular accessories including Class 8 trucks to which we provide a variety of latching and locking products as well as sleeper cabs. Also hard hit were travel related markets to which we supply luggage locks, the electronic and gaming markets to which we supply various locks and the coin metering and collection systems for the commercial laundry markets. All of these sectors reflect the overall weakness in the general economy. While there were some small positive signs of business improvement in the latter part of the quarter, it is still too early to anticipate when our markets will regain their strength."

Mr. Leganza continued, "In response to the reduced sales activity and future economic uncertainty we have taken measures, as painful as they may be, to best align our manufacturing costs and expenses with the current production schedules and personnel requirements. These measures included reductions of personnel, shorter work schedules for some and where ever practical the elimination of discretionary spending. Some of the cost impact of those actions have affected the first quarter while the benefit of these actions will be realized in future periods."

Mr. Leganza continued further, "Our liquidity and cash flow requirements are adequate with no expected impairment of our dividend payments, debt service requirements or important and necessary capital expenditures. We will take whatever measures necessary to enhance that liquidity position, as well as whatever further action may be necessary to improve our operating results and pursue our strategic initiatives."

Mr. Leganza concluded, "We cannot predict when or how the economy's problems will be resolved, but until then we will make every effort to put ourselves in a strong strategic position to enjoy the benefits of that recovery when it occurs.