Mr. Vlak also said that "Net sales in the Metal Products segment were 23% below the same period last year, consistent with performance in prior quarters, due to persistent pressure in the US coal industry. The segment generated $76 thousand in earnings in the third quarter. This is the first quarter of positive earnings for the Metal Products segment this year."Mr. Vlak continued, "the Company generated $9.0 million of cash from its operations, in the first nine months of 2016, as a result of disciplined capital management. The improvement in cash flow in 2016 is primarily the result of increased earnings during the period and the impact from inventory reduction initiatives. In addition, our decision to freeze our pension plan effective May 31, 2016 not only strengthens our balance sheet but also contributed $0.11 and $0.17 per diluted share in the third quarter and the nine-month period ending October 1, 2016." "The Company continues to make steady progress on three parts of its strategy, including optimizing its portfolio, strengthening execution in each of its businesses, and building its balance sheet," said Mr. Vlak. He stated that "our team has built a solid pipeline of M&A opportunities and we have been evaluating potential transactions that can improve returns and accelerate growth of our business," Mr. Vlak concluded. "Our businesses are preparing plans for 2017 and beyond. As part of our efforts to strengthen execution, we have asked our each of our businesses to identify multi-year growth opportunities - leveraging their presence with customers, finding new end-markets for our products, or identifying ways to re-invent our core offerings. We are encouraged by the work that is being completed by our businesses and look forward to sharing our plans." The Eastern Company is a 158-year-old manufacturer of industrial hardware, security products and metal castings. It operates from 13 locations in the U.S., Canada, Mexico, Taiwan and China. The diversity of the Company's products helps it to respond to the changing requirements of a broad array of markets.
Safe Harbor for Forward-Looking StatementsStatements in this document about the Company's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including those set forth in the Company's reports and filings with the U.S. Securities and Exchange Commission. The Company is not obligated to update or revise any forward-looking statements as a result of developments occurring after the date of this document.
|Statement of Consolidated Income (unaudited)|
|THE EASTERN COMPANY (NASDAQ - EML)|
|THREE Months Ended||NINE Months Ended|
|13 wks||13 wks||39 wks||39 wks|
|Oct 1, 2016||Oct 3, 2015||Oct 1, 2016||Oct 3, 2015|
|Net Income After Tax||$||2,400,064||$||2,527,722||$||5,135,974||$||3,986,267|
|Net Income Per Share:|