Welcome to our dedicated page for Eastern Company news (Ticker: EML), a resource for investors and traders seeking the latest updates and insights on Eastern Company stock.
The Eastern Company (NASDAQ: EML), established in 1858, is a prominent manufacturer specializing in custom-engineered industrial hardware, security products, and metal castings. With operations spanning the U.S., Canada, Mexico, Taiwan, and China, Eastern is adept at responding to diverse market needs via its robust product range.
The Company operates through three primary divisions: the Industrial Hardware Group, the Security Products Group, and the Metal Products Group. The Industrial Hardware Group boasts a comprehensive array of latches, locks, and security hardware, renowned for high quality, especially in the transportation sector under the Eberhard brand. This division also includes the Composite Panel Technologies, which adds significant versatility to its offerings.
The Security Products Group is dedicated to safeguarding property and controlling access through custom-engineered locks produced by the Illinois Lock Company/CCL Security Products division, serving a myriad of original equipment manufacturers.
The Metal Products Group continues to demonstrate strength and innovation in metal casting, supporting various industrial applications.
Recent achievements underscore Eastern's commitment to enhancing shareholder value and operational efficiency. For instance, Eastern's Board of Directors approved a new share repurchase program authorizing the repurchase of up to 200,000 shares through August 2028. This initiative, as articulated by the Company's Chairman, Mr. James Mitarotonda, aims to return value to shareholders and mitigate dilution from stock issuances related to long-term incentive compensation.
Under the guidance of President and CEO Mark Hernandez, Eastern has pursued strategic initiatives to bolster financial health, such as an impressive reduction in long-term debt and improvements in gross margins. The Company’s four-pronged strategy focuses on disciplined operations, optimal capital utilization, a focused commercial approach, and value-adding acquisitions, exemplified by their recent acquisition of Sureflex, Inc., enhancing their manufacturing efficiency.
Eastern's financial performance for recent quarters reflects these efforts, with significant improvements in gross margin and reductions in selling, general, and administrative expenses due to strategic cost-saving measures. Despite challenges such as supply chain disruptions and fluctuating market demands, Eastern continues to show resilience and adaptability, positioning itself robustly for future growth.
Looking forward, Eastern remains committed to harnessing synergies within its divisions under the “One Eastern” strategy, aiming to reduce manufacturing and supply chain costs while optimizing performance and profitability.
The Eastern Company (NASDAQ: EML) will release its financial results for Q4 and fiscal year 2021 on March 17, 2022, after market close. A conference call will follow on March 18, 2022, at 11:00 a.m. ET, to discuss the results. Dial-in options are available for both US and international participants. The Company, which operates in multiple locations including the U.S. and China, specializes in engineered solutions for commercial transportation and logistics markets.
The Eastern Company (NASDAQ:EML) has declared a quarterly cash dividend of $0.11 per share, payable on March 15, 2022, to shareholders of record as of March 1, 2022. This marks the company's 326th consecutive quarterly dividend, demonstrating a commitment to returning value to shareholders. Eastern Company operates in various countries, including the U.S., Canada, and China, focusing on providing engineered solutions to niche markets. The firm aims for long-term growth despite potential risks associated with market conditions and the ongoing effects of COVID-19.
The Eastern Company (NASDAQ:EML) announced the retirement of Michael McManus from its Board of Directors, effective December 31, 2021. McManus has served since 2015 and was instrumental as Chairman of the Compensation Committee. James Mitarotonda, the Board Chairman, expressed gratitude for McManus’s contributions. John Everets will succeed him as Chairman of the Compensation Committee from January 1, 2022. The Board is actively searching for a new Director to be elected at the 2022 annual shareholder meeting.
The Eastern Company (NASDAQ:EML) has sold its Frazer & Jones foundry business, a move aimed at streamlining its portfolio to enhance growth and operating margins. President and CEO August Vlak noted that this sale aligns with their strategy to focus on core businesses, with proceeds allocated towards debt reduction and share repurchases. This follows prior divestitures of non-core businesses, signaling a commitment to strengthening the company’s primary operations.
The Eastern Company (NASDAQ:EML) reported a 15% increase in net sales from continuing operations, totaling $63.9 million for Q3 2021, driven by strong demand in core markets. Net earnings increased 21% to $3.8 million, or $0.61 per diluted share. Gross margins rose to 24%, aided by price increases offsetting material costs. Backlog grew significantly to $83.1 million, up 44% year-over-year. The company divested Greenwald Industries, utilizing proceeds for debt reduction and share repurchases. The net leverage ratio improved to 2.5x, indicating a strong balance sheet.
The Eastern Company (NASDAQ:EML) has announced the divestiture of its Greenwald Industries business as part of a strategy to streamline its operations and enhance growth. President August Vlak stated that the transaction will strengthen Eastern's focus on its core businesses and improve operating margins. Proceeds from the sale will primarily be used to reduce debt, enhancing the company’s balance sheet. Eastern's ongoing efforts include reporting non-core businesses as discontinued operations. The specific terms of the transaction remain undisclosed.
The Eastern Company (NASDAQ:EML) will release its third quarter 2021 financial results on November 10, 2021, after market close. A conference call is scheduled for November 11, 2021, at 11:00 a.m. ET to discuss the findings. Those unable to attend can access a replay of the webcast. The company specializes in engineered solutions for industries such as commercial transportation and logistics and operates in multiple countries including the U.S., Canada, Mexico, U.K., Taiwan, and China.
The Eastern Company (NASDAQ:EML) declared its quarterly cash dividend of $0.11 per share, set for payment on December 15, 2021. This marks the company's 325th consecutive quarterly dividend, reflecting its commitment to returning value to shareholders. Shareholders of record as of November 15, 2021 are eligible. The Eastern Company specializes in engineered solutions for niche industrial markets and operates globally. The announcement underscores the company's financial robustness amidst ongoing challenges from market dynamics.
The Eastern Company (NASDAQ:EML) reported a 55% increase in net sales from continuing operations to $61.2 million for Q2 2021, driven by strong demand in various industrial markets. Net earnings rose 32% to $2.8 million or $0.44 per diluted share. However, gross margins declined to 23% due to rising material and freight costs. The backlog improved significantly, reaching $89.2 million, a 61% increase year-over-year. A one-time charge of $8.1 million was recorded regarding discontinued operations, leading to a loss per diluted share of ($0.71).
The Eastern Company (NASDAQ:EML) has declared a quarterly cash dividend of $0.11 per share, scheduled for payment on September 15, 2021. Shareholders of record as of August 13, 2021 will benefit from this dividend, marking the company's 324th consecutive quarterly distribution. This reflects the company's ongoing commitment to providing returns to its investors amidst its operations across various countries, focusing on long-term growth in industrial markets.
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