Hammond Manufacturing Company Limited

Hammond Manufacturing Company Limited

October 25, 2005 10:54 ET

Hammond Manufacturing Company Limited Announces Financial Results For The Third Quarter Ending September 30, 2005

GUELPH, ONTARIO--(CCNMatthews - Oct. 25, 2005) - Hammond Manufacturing Company Limited (TSX:HMM.SV.A) -

Nine months ending:
9/30/05 10/1/04 Change
Net sales 50,215,000 45,553,000 10.2%
Earnings (loss) from
operations 432,000 1,922,000
Net earnings (loss)
(114,000) 469,000
Earnings (loss) per share ($0.01) $0.04

Shares outstanding 11,307,300 11,302,300
Net book value per share $1.83 $1.87

Three months ending:
9/30/05 10/1/04 Change
Net sales 16,962,000 15,097,000 12.4%
Earnings (loss) from
operations (250,000) 444,000
Net earnings (loss)
(294,000) (53,000)
Earnings (loss) per share ($0.03) ($0.00)

We are pleased to report continued sales growth despite negative currency translation impacts during the quarter.

Net sales increased 12.4% for the quarter and 10.2% year-to-date 2005 over the comparable periods for 2004. Changes in exchange rates reduced reported revenues by $415,000 in the quarter from what would have been reported had exchange rates been consistent with second quarter levels, and $847,000 lower when compared against exchange rate levels in the third quarter of 2004. Underlying sales growth is strong, supported by our strategy to increase our market share of Canadian electrical enclosures, defend our US electrical business, and expand our electronics business globally. In source currencies, net sales have increased 14.2% Q3 2005 year-to-date over the comparable nine month period in 2004.

We are disappointed in the net results, as earnings were negatively affected by currency impacts, continued high material costs, and rising energy costs. Our pricing platform is being increased and will recapture much of our cost change over the coming months. We are also focusing on manufacturing and distribution expenses to contain costs. Continued volume growth will be supportive of improved profits.

The balance sheet remains strong, net book value per share ending the quarter at $1.83.

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)