Hammond Manufacturing Company Limited

Hammond Manufacturing Company Limited

March 09, 2005 09:53 ET

Hammond Manufacturing Company Limited Announces Financial Results For The Year And Fourth Quarter Ended December 31, 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HAMMOND MANUFACTURING COMPANY LIMITED

TSX SYMBOL: HMM.SV.A

MARCH 9, 2005 - 09:53 ET

Hammond Manufacturing Company Limited Announces
Financial Results For The Year And Fourth Quarter
Ended December 31, 2004

GUELPH, ONTARIO--(CCNMatthews - March 9, 2005) - Hammond Manufacturing
Company Limited (TSX:HMM.SV.A) -



Twelve months ending Dec. 31st:
2004 2003 Change
Net sales 59,525,000 56,612,000 5.1%
Earnings from operations 2,201,000 1,815,000 21.3%
Net earnings (loss) 201,000 (34,000)
Earnings per share .02 .00
Shares outstanding 11,302,300 11,302,300
Net book value per share $1.84 $1.83


Three months ending Dec. 31st:
2004 2003 Change
Net sales 13,972,000 13,732,000 1.7%
Earnings from operations 279,000 175,000 59.4%
Net earnings (loss) (268,000) (454,000)
Earnings per share (.02) (.04)
Shares outstanding
Net book value per share


The Company is pleased to report improved sales and earnings for the
year ended December 31, 2004. Net sales were up 5.1% on the year, and
earnings improved to $201,000 from a loss of $34,000 reported in 2003.

The translation impact on foreign currency denominated transactions
continued to reduce the Company's reported sales in Canadian dollars,
reduced by $2.3 Million for the year, and $0.9 Million for the quarter,
primarily due to the continued appreciation of the Canadian dollar
relative to the US dollar. Underlying sales growth remains positive,
with annual Canadian sales up 8.0%, US sales up 8.7% and international
sales up 19.1% when compared in source currencies.

Fourth quarter earnings were impacted by non-cash losses from the
Company's investment in Moloney Electric Inc., and losses on balance
sheet translation of foreign operations.

Earnings from operations for the year and the quarter are improved over
comparable periods in 2003, up 21.3% and 59.4% respectively, supported
by volume growth, cost reductions and productivity improvements achieved
through the efforts of our employees. The balance sheet remains strong,
net book value per share ending the year at $1.84, up from $1.83 in 2003.

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.

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Contact Information

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