Exhibit 99
FOR IMMEDIATE RELEASE
July 30, 2003
THE EASTERN COMPANY REPORTS RESULTS
FOR THE SECOND QUARTER OF 2003
Naugatuck, CT-The Eastern Company (AMEX-EML) today announced its operating
results for the second quarter. Second-quarter net income increased to $936,700,
or $.26 per diluted share compared to the $758,500 or $ .20 per diluted share
reported in the second quarter of 2002, a 23% increase. Sales for the second
quarter of 2003 increased slightly to $21.6 million, compared to $21.3.
Year-to-date earnings for the six-month period ended June 28 were $1.9 million
or $.52 per diluted share, compared to $1.4 million or $.38 per diluted share
for the same period in 2002, a 32% increase. Net sales for six months were $43.2
million compared to $41.6 million for the first six months of the previous year,
a 4% increase.
Leonard F. Leganza, President and CEO stated, "While the operating results for
the quarter and year to date have been positive, sales improvements have not
been as robust as expected, an indication that the economy has not yet improved
significantly in our core niche markets. Our profit margins have continued to
remain strong as a result of new product sales, and the addition of the Canadian
Commercial Vehicles subsidiary which produces "sleeper boxes" for large trailer
trucks."
Mr. Leganza continued, "Our presence in China has recently been expanded with
the establishment of Eastern Industries (Shanghai) Ltd., a manufacturing
facility located in Shanghai, China. This subsidiary will be instrumental in
helping us remain price competitive in North America and will open up the
possibility to more effectively pursue markets in Asia and elsewhere. In
addition to producing fabricated metal products, it will include plastic
injection molding capability. It will also serve as a sourcing center for
non-competitive products."
The Eastern Company is a 145-year-old manufacturer of industrial hardware,
security products and metal castings. It operates from nine locations in the
U.S., Canada, Mexico, Taiwan and China. The diversity of the Company's products
enables it to respond to the changing requirements of a broad array of markets.
Forward-Looking Statements: Information in this news release contains statements
which reflect the Company's current expectations regarding its future operating
performance and achievements. Actual results may differ due to the many economic
uncertainties that affect the Company's business environment. Further
information about the potential factors, which could affect the Company's
financial results, are included in the Company's reports and filings with the
Securities and Exchange Commission. The Company is not obligated to update or
revise the aforementioned statements for those new developments.
Contact: Leonard F. Leganza or John L. Sullivan III
(203) 729-2255
Statement of Consolidated Income (unaudited)
THE EASTERN COMPANY (AMEX - EML)
THREE Months Ended SIX Months Ended
13 wks 13 wks 26 wks 26 wks
June 28, 2003 June 29, 2002 June 28, 2003 June 29, 2002
------------- ------------- ------------- -------------
Net Sales $ 21,591,111 $ 21,291,745 $ 43,181,825 $ 41,612,262
Net Income $ 936,688 $ 758,518 1,890,065 1,435,625
Net Income Per Share:
Basic $ 0.26 $ 0.21 $ 0.52 $ 0.40
Diluted $ 0.26 $ 0.20 $ 0.52 $ 0.38
Weighted average shares outstandings:
Basic 3,625,310 3,630,586 3,627,807 3,629,931
Diluted 3,630,514 3,717,031 3,630,409 3,729,542