The Eastern Company (NYSE Amex-EML) today announced the results of its operations for the third quarter and nine months of 2011. Net sales for the quarter were $36.1 million, compared to $34.0 million for the same period in 2010, a 6% increase. Net income for the third quarter was $1.5 million or $0.24 per diluted share and was level with the $1.5 million or $0.24 per diluted share that was reported in the third quarter of 2010.
Net sales for the nine months of 2011 were $104.8 million compared to $97.5 million, an 8% increase. Year to date earnings for the nine month period ended October 1, 2011 were $4.0 million or $0.65 per diluted share, compared to $3.9 million or $0.63 per diluted share for the same period in 2010.
Leonard F. Leganza, Chairman, President and CEO stated, “Sales in both the third quarter and nine month periods improved over sales in the comparable periods in 2010, however, we are still experiencing softness in some of our diverse markets. Year to date results have been impacted by factors including the lower than expected sales to the military market as a result of reduced government spending, the start-up costs we incurred to establish our new composite panel manufacturing facility in Ontario, Canada, slower than anticipated sales of new products for the commercial laundry industry as well as margin pressure caused by ongoing cost increases. Overall though, we are pleased with the operating results this year.”
Mr. Leganza continued, “In the Metals Products segment, The Frazer & Jones division has continued to experience strong demand for its mine roof support products and, as a result of the capital investments made in 2010, has improved product quality and operating efficiency.”
Mr. Leganza concluded, “Despite the uncertain current state of the economy, we expect that all of our business segments will experience some growth in sales in 2011 when compared to 2010. Our strong financial condition will also provide us the resources we need to invest in our ongoing product development initiative, capital equipment where needed and to continue our current dividend policy.”