Exhibit 99
FOR IMMEDIATE RELEASE
October 29, 2003
THE EASTERN COMPANY REPORTS RESULTS
FOR THE THIRD QUARTER OF 2003
Naugatuck, CT-The Eastern Company (AMEX-EML) today announced its operating
results for the third quarter. Net income increased to $942,800, or $.26 per
diluted share compared to the $678,000 or $ .19 per diluted share reported in
the third quarter of 2002, a 39% increase. Sales for the third quarter of 2003
increased 9% to $21.9 million compared to $20.0 for the same period in 2002.
Year-to-date earnings for the nine-month period ended September 27, 2003 were
$2.8 million or $.78 per diluted share, compared to $2.1 million or $.57 per
diluted share for the same period in 2002, a 34% increase. Net sales for nine
months were $65.0 million compared to $61.7 million for the first nine months of
the previous year, a 6% increase.
Leonard F. Leganza, President and CEO stated, "Our improved sales results for
the year to date, reflects improved business in all of our operating units,
except the metal products division which experienced a decrease in sales. The
Canadian Commercial Vehicle subsidiary, which we recently acquired and which
produces lightweight "sleeper boxes" for the trucking industry, was already an
important contributor to the strong year to date results. We anticipate
continued favorable sales activity in the fourth quarter of the year."
Mr. Leganza continued, "At our Illinois Lock / CCL Security Products division we
have developed a new lock which meets all the requirements established by Travel
Sentry TM, a standard setting group created to work closely with the
Transportation Security Administration (TSA) and the travel goods industry. This
lock will allow airport passengers to lock their bags and not have the lock
destroyed if the bag is inspected by the TSA. In addition, our presence in China
continues to provide us with an important offshore source of supply. This
presence has been further enhanced by the establishment of Eastern Industrial
(Shanghai) Ltd. which, in addition to increased manufacturing capability, we
believe will help to introduce our broad array of products into the China
market."
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 NINE Months Ended
13 wks 13 wks 39 wks 39 wks
Sept. 27, 2003 Sept. 28, 2002 Sept. 27, 2003 Sept. 28, 2002
-------------- -------------- -------------- --------------
Net Sales $21,864,105 $ 20,040,682 $65,045,930 $ 61,652,944
Net Income After Tax 942,759 678,043 2,832,824 2,113,668
Net Income Per Share:
Basic $ 0.26 $ 0.19 $ 0.78 $ 0.58
Diluted $ 0.26 $ 0.19 $ 0.78 $ 0.57
Weighted average shares outstandings:
Basic 3,612,748 3,632,046 3,622,791 3,630,644
Diluted 3,688,008 3,632,046 3,649,612 3,697,051