The Eastern Company (NASDAQ-EML) today announced the results of its operations for the second quarter and six months of 2012. Sales for the quarter were $41.6 million, compared to $35.5 million for the same period in 2011, a 17% increase, while net income was $2.6 million or $0.42 per diluted share, compared to the $1.5 million or $0.24 per diluted share, reported in the second quarter of 2011, a 78% increase.
Net sales for the six months of 2012 were $82.1 million compared to $68.7 million for the first six months of 2011, a 19% increase. For the six month period ended June 30, 2012 net income was $4.7 million or $0.75 per diluted share, compared to $2.6 million or $0.42 per diluted share for the same period in 2011.
Leonard F. Leganza, Chairman, President and CEO, stated, “All three of our business segments experienced increased sales and operating earnings compared to the second quarter and six months of 2011. The Metal Products segment continued to benefit from the strong demand for our proprietary products serving the coal industry. As a result, sales of several of our proprietary mining products increased in both the second quarter and first six months of 2012 as compared to the 2011 periods. In addition, our contract casting business which provides products for various industrial markets also benefited from increased revenues compared to a year ago. These increases in contract castings were driven primarily by sales of new products for the railroad and solar panel industries.”
Mr. Leganza continued, “The Industrial Hardware segment benefited from stronger military sales in the first half of 2012 on increased orders for latching hardware used in the military’s Family of Medium Tactical Vehicles program. The military Humvee program which we had participated in providing our latching systems, will be discontinued in 2012. A new program which is now in the design phase will be for a new Joint Light Tactical Vehicle and we expect to participate in that program. The Industrial Hardware segment’s strong 2012 results were also affected positively by a robust Class 8 truck market where the demand for our engineered hardware products and our lightweight composite panels used in the manufacture of sleeper cabs and truck bodies increased over prior year levels. We have currently launched a new product line of two-way air vents used on Class 8 trucks which has opened up additional opportunities for sales of related hardware into that market.”