Business
The Eastern Company Reports First Quarter 2023 Results
Net sales from continuing operations rose 5% to $72.5 million compared to last year's period.Inventory down 11% compared to December 31, 2022; working capital
About this update from Eastern Company (the)
[{"type":"text","content":"Net sales from continuing operations rose 5% to $72.5 million compared to last year's period.Inventory down 11% compared to December 31, 2022; working capital also reduced quarter over quarter.New leadership team focusing on efficient operations that consistently deliver strong results.SHELTON, CT / ACCESSWIRE / May 9, 2023 / The Eastern Company (\"Eastern\") (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving commercial transportation, logistics, and other industrial markets, today announced the results of operations for the first fiscal quarter ended April 1, 2023.President and CEO Mark Hernandez commented, \"The first quarter was a period of significant change for The Eastern Company as our new leadership team began taking a series of actions to enhance operating efficiency, reduce costs and intensify the company's focus on delivering value to shareholders. Our team's top priority in 2023 is efficient operations that consistently deliver strong results. Our approach is based on four key pillars: 1) disciplined operations; 2) optimum capital utilization; 3) focused commercial business; and longer term, 4) value-adding acquisitions.\"We will be taking actions that support our goals throughout the first half of the year and believe they will have a quick impact on The Eastern Company's financial performance and set us on a sustainable path for growth. We have already completed a full review of Eastern's businesses and products and streamlined the company's organizational reporting structure. We are also taking steps to further reduce working capital and improve profitability through portfolio optimization, improved pricing, effective cost recovery actions and other measures. Our companies now have a clear mandate to improve profitability and grow, in that order.\"Mr. Hernandez continued, \"Eastern's first-quarter results reflect the initial benefits of our operational improvement initiatives, with inventory as of April 1, 2023 down 11% compared to year-end 2022 and working capital as a percent of sales down to 22.1% compared to 26.1% for the fourth quarter of 2022. As a result, operating cash flow increased $10.4 million from the first quarter of 2022 to a source of cash of $6.9 million for the first quarter of 2023, enabling us to further reduce our long-term debt by $4.9 million and increase cash by...