Hammond Manufacturing Company Limited
TSX : HMM.A

Hammond Manufacturing Company Limited

April 26, 2007 15:33 ET

Hammond Manufacturing Company Limited Announces Financial Results for the First Quarter Ending March 30, 2007

GUELPH, ONTARIO--(CCNMatthews - April 26, 2007) - Hammond Manufacturing Company Limited (TSX:HMM.A) -



Three months ending:
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Mar 30/07 Mar 31/06

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Net sales 18,259,000 18,296,000
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Earnings from operations 348,000 758,000
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Net earnings 174,000 307,000
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Earnings per share $0.02 $0.03
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Shares outstanding 11,329,300 11,307,300
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Net book value per share $1.92 $1.83
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We are pleased to report an increase in net sales in the first quarter ending March 30, 2007 of 6.8% from the fourth quarter of 2006. Net sales for the current quarter were basically unchanged (down 0.2%) from the first quarter of the prior year.

Our gross margins decreased by 1.8% in the first quarter of 2007 from the same quarter in 2006. Margins were impacted by higher prices for commodities such as stainless steel and copper. We also had lower loading in our manufacturing operations as a result of softer electrical markets.

We generated positive cash from operations of $170,000 during the quarter including an investment in net working capital of $509,000. Our balance sheet remains strong and we continue to focus on investing cash in order to improve productivity, develop product niches and increase our market share.

Hammond Manufacturing Company Limited manufactures a broad range of products for the electronic and electrical products industry, including metallic and non-metallic enclosures, racks, small cases, outlet strips, surge suppressors and electronic transformers.

Contact Information

  • Hammond Manufacturing Company Limited
    Robert F. Hammond
    Chairman and CEO
    (519) 822-2960
    (519) 822-7289 (FAX)
    Email: ir@hammfg.com