EXHIBIT 99
FOR IMMEDIATE RELEASE
July 26, 2006
THE EASTERN COMPANY REPORTS RESULTS
FOR THE SECOND QUARTER AND SIX MONTHS OF 2006
Naugatuck, CT-The Eastern Company (AMEX-EML) today announced the results of its
operations for the second quarter and six months of 2006. Sales for the quarter
were $29.7 million, compared to $27.4 million for the same period in 2005, an 8%
increase, while net income was $1.2 million, or $0.31 per diluted share,
compared to the $1.1 million, or $0.28 per diluted share, reported in the second
quarter of 2005, a 12% increase.
Net sales for the six months were $57.5 million compared to $53.7 million for
the first six months of the previous year, a 7% increase. Year to date earnings
for the six month period ended July 1, 2006 were $2.4 million or $0.61 per
diluted share, compared to $1.8 million or $0.47 per diluted share for the same
period in 2005, a 30% increase.
Leonard F. Leganza, President and CEO stated, "The sales increase in the second
quarter was the fifteenth consecutive quarter of improved year-to-year sales and
we continue to anticipate further increases in sales as the year progresses. It
was particularly encouraging that sales at our Metal Products segment continued
to improve. During the second quarter sales increased by 38% over the prior year
period and included improvement in the sales of our proprietary mine roof
products. We have taken some very important steps in the Metal Product segment,
including the installation of new metal pouring systems which will improve the
efficiency and productivity in manufacturing ductile iron castings. We have also
continued our efforts toward marketing and selling our products to the Chinese
mining industry."
Mr. Leganza continued, "One of the strategic objectives of our Canadian
Commercial Vehicle Corporation includes the development and marketing of
products utilizing "light weight" honeycomb composite material. This material
had been developed for the manufacture of sleeper cabs for Class 8 trailer
trucks. During the second quarter shipments of products using that material were
made for use in recreational vehicles, small campers for mounting on pick-up
trucks and entrance doors used by the military in erecting mobile buildings.
Early responses from customers were very positive."
Mr. Leganza concluded, "We continue to be optimistic about our current and
future opportunities and results despite the escalating costs of raw materials,
utilities and health care presently being experienced."
The Eastern Company is a 148-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
helps 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
July 1, 2006 July 2, 2005 July 1, 2006 July 2, 2005
------------ ------------ ------------ ------------
Net Sales $ 29,669,159 $ 27,421,294 $ 57,529,342 $ 53,688,878
Net Income $ 1,212,557 $ 1,083,389 $ 2,356,322 $ 1,813,971
Net Income Per Share:
Basic $ 0.33 $ 0.30 $ 0.65 $ 0.50
Diluted $ 0.31 $ 0.28 $ 0.61 $ 0.47
Weighted average shares outstandings:
Basic 3,650,703 3,636,100 3,646,915 3,635,546
Diluted 3,881,628 3,885,059 3,870,502 3,876,236