Business
The Eastern Company Reports Third Quarter 2021 Financial Results
Net Sales from Continuing Operations Increase by 15%; Net Earnings from Continuing Operations Grow by 21%Strengthening demand across our core markets drove
About this update from Eastern Company (the)
[{"type":"text","content":"Net Sales from Continuing Operations Increase by 15%; Net Earnings from Continuing Operations Grow by 21%Strengthening demand across our core markets drove growth in our net sales from continuing operations to $63.9 million in the third quarter of 2021, an increase of 15% compared to net sales from continuing operations in the third quarter of 2020. Customer orders were strong and backlog grew to $83.1 million at the end of the third quarter compared to $57.7 million at the end of the third quarter of 2020.Gross margins increased sequentially by 100 basis points to 24% in the third quarter of 2021, compared to 23% in the second quarter of 2021, as price increases began to offset elevated material costs and freight rates.Earnings per diluted share from continuing operations for the third quarter of 2021 were $0.61, an increase of 20% over the third quarter of 2020, as a result of higher sales and improved gross margins, partly offset by expenses related to the move of certain operations from Illinois to Mexico. Adjusted for these expenses, earnings per diluted share from continuing operations were $0.64. (See non-GAAP financial measures.)Eastern's balance sheet remains strong with net leverage of 2.5x as of the end of the third quarter of 2021, down from 3.0x at the end of fiscal year 2020.As part of our efforts to streamline our portfolio of businesses and build scale in our largest businesses, Eastern announced on November 4th that it had divested the assets of Greenwald Industries. We plan to use the proceeds from the sale to reduce our debt and re-initiate share repurchases under a new 10b5-2 plan.NAUGATUCK, CT / ACCESSWIRE / November 10, 2021 / 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 third fiscal quarter ended October 2, 2021.President and CEO August Vlak commented, \"Sales from continuing operations for the third quarter of 2021 increased 15% compared to the third quarter of 2020, due to strengthening demand across a broad range of our commercial vehicle and industrial markets. During the third quarter of 2021, sales in our returnable transport packaging business grew by more than 30% compared to the third quarter of 2020, as our custo...