Business
The Eastern Company Reports Results for the Third Quarter Fiscal 2020
A Recovery of Sales to $65.8 Million and Earnings of $0.48 Per ShareNAUGATUCK, CT / ACCESSWIRE / November 9, 2020 / The Eastern Company ("Eastern" or the
About this update from Eastern Company (the)
[{"type":"text","content":"A Recovery of Sales to $65.8 Million and Earnings of $0.48 Per ShareNAUGATUCK, CT / ACCESSWIRE / November 9, 2020 / The Eastern Company (\"Eastern\" or the \"Company\") (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving niche industrial markets, today announced the results of operations for the third quarter ended October 3, 2020.Eastern's comprehensive program to maintain the health and safety of employees resulted in no closures and no suspension of operations related to the Covid-19 pandemic at any of its 21 facilities during the third quarter 2020.Net sales rebounded to $65.8 million, an increase of 35% compared to the second quarter of 2020 and an increase of 8% compared to the third quarter of 2019. The improvement over the 2020 second quarter reflected strengthening business conditions and customer re-openings in the 2020 third quarter as well as the addition of Hallink Moulds Inc. (\"Hallink\") in August 2020. The improvement over the prior-year quarter is primarily due to the addition of Big 3 Precision, partially offset by the divestiture of Canadian Commercial Vehicles Corporation in the second quarter of 2020.Earnings in the third quarter of 2020 rose to $0.48 per diluted share as a result of recovering sales and sustained expense control. Third quarter 2020 earnings rebounded from the second quarter 2020 loss of $0.30 per diluted share and more than doubled from the adjusted earnings per diluted share before one-time items in the second quarter of 2020.Cash flow from operations was $9.3 million in the third quarter of 2020, nearly two-and-a-half times cash flow from operations in the third quarter of 2019, and the Company's balance sheet continued to strengthen with $1.3 million in debt reduction during the third quarter of 2020.President and CEO August Vlak commented, \"The third quarter of 2020 saw a remarkable recovery from the severe contraction in the second quarter of 2020 and demonstrated the positive impact of recent acquisitions on the strength of our business. Net sales in the third quarter of 2020 were $65.8 million, an increase of 35% over the second quarter of 2020. The sequential increase in net sales was primarily attributable to the re-opening of customers' operations, especially manufacturers of heavy-duty trucks and recreational vehicles. In April and May of 2020, many ...