Handy & Harman Ltd. (NASDAQ(CM): HNH); ("HNH" or the "Company"), a diversified global industrial company, today announced operating results for the fourth quarter and year ended December 31, 2012. They are summarized in the following paragraphs. For a full discussion of the results, please see the Company's Form 10-K, which can be found at www.handyharman.com.
HNH reported net sales of $138.1 million for the quarter, as compared to $137.9 million for the same period of 2011. Income from continuing operations before tax was $4.6 million in the fourth quarter of 2012, as compared to $2.8 million in 2011. Net income for the fourth quarter of 2012 was $4.5 million, or $0.34 per basic and diluted common share, as compared to net income of $110.2 million, or $8.71 per basic and diluted common share for the same period in 2011.
For the year ended December 31, 2012, net sales were $629.4 million, as compared to $635.0 million in 2011. Income from continuing operations before tax was $37.3 million, as compared to $28.4 million in 2011. Net income for the year was $26.5 million, or $2.03 per basic and diluted common share, which included net income from discontinued operations of $3.0 million, or $0.23 per share, as compared to net income of $138.8 million, or $11.05 per basic and diluted common share in 2011, which included net income from discontinued operations of $4.3 million, or $0.34 per share.
The principal reason for the decrease in net income for both the quarter and year was a significantly higher tax provision in 2012, as compared to 2011. In the fourth quarter of 2011, the Company determined that it was more likely than not that the benefit of its net operating loss carryforwards would be realized in the future, and therefore released the valuation allowance that had been previously established against its deferred tax asset and recorded that benefit in the tax provision. The deferred tax asset will be amortized as the net operating loss carryforwards are utilized. The Company's tax provision for the quarter and year ended December 31, 2012 does not include any such benefit.
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