(Source: Business Wire)
The Eastern Company (NYSE Amex-EML) today announced the results of its operations for the second quarter and six months of 2009. Sales for the quarter were $28.1 million, compared to $36.1 million for the same period in 2008, a 22% decrease, while net income was $842,000 or $0.13 per diluted share, compared to the $1.4 million, or $0.22 per diluted share, reported in the second quarter of 2008, a 38% decrease.
Net sales for the six months of 2009 were $56.5 million compared to $69.0 million for the first six months of 2008. For the six month period ended July 4, 2009 the year to date loss was ($240,000) or ($0.04) per diluted share, compared to income of $2.6 million or $.42 per diluted share for the same period in 2008.
Mr. Leganza Chairman, President and CEO stated, "The positive operating results for the second quarter were a result of cost and expense reduction initiatives implemented during the first quarter of 2009 and should continue to benefit our operating results as we move forward through the remainder of the year. Further initiatives will be instituted if necessary to respond to any further weaknesses in the economy. These actions will also make us more efficient when the economy improves."
Leonard F. Leganza, added, "The continuing weak global economy has had a downward affect on most of the markets we serve, as reflected in the decreased sales volume in the second quarter and six months year to date. Our Industrial Hardware Group has been faced with significantly depressed vehicular markets especially in the Class 8 heavy truck markets as well as in the industrial markets requiring our various hardware products. The Metal Products Group also experienced a moderately weak demand for both mining and contract casting products. The Security Products Group, where our markets are very diversified, also experienced weak demand. The lower sales volumes have reduced plant utilization and gross margins."
Leonard F. Leganza, continued, "However, notwithstanding the gloomy impact of the economy, as we look ahead at our operations, there are some very promising factors. The mining industry does remain strong and is anticipated to continue to be strong in the future, which should strengthen our Metal Products Group. The Industrial Hardware Group is continuing to benefit from increased orders for our military latching systems and we expect that orders for our lightweight composite Sleeper Cabs should improve in the fourth quarter of this year.
