- Cash flow from operations was $10.0 million vs. $2.1 million of cash used in 2008

- Sales were $52.1 million, down 39% compared to 2008

- Orders were $32.8 million, down 65% compared to 2008

- Outstanding debt was reduced by $15.9 million in the quarter

ELMIRA, N.Y., May 7 /PRNewswire-FirstCall/ -- Hardinge Inc. (Nasdaq: HDNG), a leading international provider of advanced metal- cutting solutions, today reported net sales of $52.1 million and a net loss of ($5.4) million for the first quarter of 2009. This compares with net sales of $85.6 million and a net loss of ($0.7) million for the first quarter of 2008. On a per share basis, the diluted net loss for the quarter was ($0.47), compared to ($0.06) for the same period of 2008.

Excluding one-time costs which include a voluntary early retirement program, severance costs related to staffing reductions, and recognition of unamortized expenses associated with the early termination of the company's revolving credit facility, the net loss would have been ($2.9) million, or a net loss per share of ($0.25).

Cash flow from operations was $10 million in the quarter reflecting reduced working capital requirements, primarily related to reduced accounts receivable balances. During the first quarter, the Company reduced its outstanding debt by $15.9 million. At March 31, 2009, outstanding debt net of cash was $1.5 million.

Selling, general and administrative (SG&A) expenses were down 23%, to $18.2 million in the first quarter, compared to $23.5 million in 2008. Excluding non-recurring charges of $1.5 million related to the voluntary early retirement program and severance related costs, SG&A expenses were down 29%, compared to 2008. Foreign currency translation had a favorable impact of approximately $1.8 million on SG&A compared to the same quarter in 2008.

"The global manufacturing marketplace remains severely weakened, and our first quarter sales and customer orders reflect the very difficult business environment that exists in all of our markets," said Richard L. Simons, President and Chief Executive Officer. "Currently, limited visibility exists for sales and order activity in future quarters making it prudent to take aggressive action to reduce overhead costs, maximize our cash flow, and reduce our debt. Hardinge remains solidly positioned to emerge from the current business climate with low-debt, a reduced overhead structure and the same highly regarded products upon which our business was built. In fact, we will introduce two new turning center models and a 5-Axis machining center to the marketplace this quarter."

The following tables summarize orders and sales by geographical region for the quarter ended March 31, 2009 and 2008:

Quarter Ended

March 31,

Orders from__ %

Customers in:__ 2009__ 2008__ Change

North America__ $12,439__ $25,698__ (52)%

Europe__ 11,119__ 43,348__ (74)%

Asia & Other__ 9,249__ 24,075__ (62)%

$32,807__ $93,121__ (65)%

Quarter Ended

March 31,

Sales from__ %

Customers in:__ 2009__ 2008__ Change

North America__ $16,123__ $28,556__ (44)%

Europe__ 24,287__ 37,563__ (35)%

Asia & Other__ 11,704__ 19,480__ (40)%

$52,114__ $85,599__ (39)%__

Decreased first quarter order and sales activity occurred across all regions reflecting the global slowdown in manufacturing. Decreases in first quarter order and sales activity, compared to 2008, also occurred across all product lines. Currency exchange rates had an unfavorable impact on orders and sales of $1.5 million and $3.9 million, respectively, compared to the first quarter in 2008.

First quarter gross profit was $14.1 million, down 44% compared to the prior year quarter. Gross profit as a percentage of sales was 27.0%, compared to 29.4% in the first quarter of 2008. Gross profit was negatively impacted by increased competitive pricing pressures and lower sales volume.

SG&A expense as a percentage of sales was 34.8% for the quarter, compared to 27.5% for the prior year quarter. SG&A expense as a percent of sales increased, despite a 23% reduction in SG&A expense compared to 2008, reflecting significantly lower net sales for the quarter. The reduction in SG&A expenses during the first quarter was the result of continued cost cutting actions by the Company, which included staffing reductions, temporary plant shut downs, and reduced levels of discretionary spending. Excluding non-recurring charges of $1.5 million related to the voluntary early retirement program and severance related costs, SG&A for the quarter was $16.7 million, or 32% of net sales.

Interest expense for the current quarter was negatively impacted by the expensing of $1.0 million in unamortized deferred financing costs related to the termination of the multi-currency credit facility.