Exhibit 99
FOR IMMEDIATE RELEASE
February 7, 2007
THE EASTERN COMPANY REPORTS RECORD
RESULTS FOR 2006 FOURTH QUARTER AND YEAR-END
Naugatuck, CT-The Eastern Company (AMEX-EML) today announced its operating
results for the fourth quarter and full year of 2006. Sales for the fourth
quarter of 2006 were $49.7 million, compared to $28.2 million in 2005, an
increase of 76%, while sales for the full year 2006 were $138.5 million, an
increase of 27% when compared to sales of $109.1 million in 2005.
For the fourth quarter of 2006 net income of $5.6 million or $0.96 per diluted
share, compared to the $1.3 million or $0.23 per diluted share reported in the
fourth quarter of 2005. For the full year 2006, net income increased 121% to
$9.7 million or $1.67 per diluted share, compared to net income of $4.4 million
or $0.75 per diluted share in 2005.
Leonard F. Leganza, Chairman and President stated, "2006 was a very good year.
We set records in Sales and Earnings and our backlogs have increased.
Notwithstanding the positive impact of $19 million dollars of shipments toward
fulfilling a military contract, the Company's "core" sales increased 10% for the
year and 17% in the fourth quarter, the 17th consecutive quarter of improved
year to year sales. We are optimistic that trend will continue into 2007."
Mr. Leganza continued, "The full integration of the Royal Lock and Summit
Corporation acquisitions, which were concluded in the latter part of 2006, will
be completed in 2007. The military contract to deliver door latching components
to be used in retro-fitting the up-armored military Humvees will continue into
2007. These activities will be positive factors toward sustaining our revenue
growth."
Mr. Leganza added, "As we continue to build on our success, in addition to
sustaining revenue growth, we will have to face the challenges which affect our
profit margins, such as the volatile metal markets as well as the impact of
global competition. We will continue to implement applicable programs to
overcome these challenges."
The Eastern Company is a 149-year-old leading manufacturer of vehicular and
industrial hardware, locks, metal castings, coin collection and smart card
products. 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 TWELVE Months Ended
13 wks 13 wks 52 wks 52 wks
Dec. 30, 2006 Dec. 31, 2005 Dec. 30, 2006 Dec. 31, 2005
------------ ------------ ------------ ------------
Net Sales $ 49,729,681 $ 28,213,597 $138,465,411 $109,107,290
Net Income After Tax 5,635,259 1,296,849 9,658,748 4,367,187
Net Income Per Share:
Basic $ 1.03 $ 0.24 $ 1.76 $ 0.80
Diluted $ 0.96 $ 0.23 $ 1.67 $ 0.75
Weighted average
shares outstandings:
Basic 5,478,592 5,457,690 5,474,137 5,455,073
Diluted 5,854,147 5,794,337 5,768,108 5,828,837