The Eastern Company (NYSE Amex-EML) today announced the results of its operations for the third quarter and nine months of 2010. Sales for the quarter were $34.0 million, compared to $28.1 million for the same period in 2009, a 21% increase. Net income for the third quarter was $1.5 million or $0.24 per diluted share compared to the $907,000 or $0.15 per diluted share that was reported in the third quarter of 2009.
Net sales for the nine months of 2010 were $97.5 million compared to $84.7 million, a 15% increase. Year to date earnings for the nine month period ended October 2, 2010 were $3.9 million or $0.63 per diluted share, compared to $667,000 or $0.11 per diluted share for the same period in 2009.
Leonard F. Leganza, Chairman, President and CEO stated, “Sales in the third quarter were slightly improved over sales in the first and second quarters of 2010, an indication that we may be seeing some general improvement in the markets we serve. We are however, still experiencing softness in some of our markets. Overall though, we are pleased with the operating results this year.”
Mr. Leganza also stated, “Following a long-term corporate policy of dividend payments, considering earnings and corporate needs, the 281st consecutive quarterly dividend which is $0.09 per common share, payable in December, will include an extra $0.16 per share. This extra payment is being made in view of our favorable operating results and strong cash flow. We are optimistic that our operating results will continue to improve throughout 2011. Also note worthy, the Company repatriated $1.5 million in earnings from our foreign subsidiaries for reinvestment in our U.S. based operations.
Mr. Leganza continued, “In the Metals Products Group, The Frazer & Jones division has experienced strong demand for its proprietary mine roof products and that greater demand is expected to continue in the foreseeable future. Also, a significant portion of our $2.5 million capital improvement program was successfully implemented during the third quarter of this year with little disruption to our operation. It will significantly improve the operating efficiency and the product quality and delivery demands which our customers expect.”