Hardinge Reports Increased Earnings for the First Quarter

Apr 26, 2001, 01:00 ET from Hardinge Inc.

    ELMIRA, N.Y., April 26 /PRNewswire/ -- Hardinge Inc. (Nasdaq:   HDNG), a
 leading producer of advanced material-cutting solutions, today reported net
 income of $2.19 million, or $0.25 per basic and diluted share, for the three
 months ended March 31, 2001.  This compares to net income of $2.16 million, or
 $0.24 per basic and diluted share, in the first quarter of 2000.  Hardinge's
 first quarter sales rose $10.6 million, or 22.2 percent, to $58.4 million.
 Excluding Hauser Tripet Tschudin (HTT), which the Company acquired on
 December 22, 2000, sales rose $1.9 million, or 4.0 percent.
     These results exceeded the Company's prior projection given in its 2000
 year end press release, which were earnings of $0.17 to $0.20 per basic and
 diluted share and sales of $52 million to $55 million.  The improvement
 resulted primarily from stronger international sales due to earlier than
 anticipated shipment of certain multiple machine orders.
     Sales in the U.S. market declined 16.2 percent to $27.4 million and
 accounted for 46.9 percent of total worldwide sales compared to 68.4 percent
 in the first quarter of 2000. Sales in Europe, however, increased
 83.7 percent, to $18.7 million, or 32.1 percent of total sales.  HTT provided
 approximately $5 million of the increase in European sales.  Other
 international sales rose 150.3 percent to $12.3 million, or 21.0 percent of
 total sales, reflecting strong shipments of turning machines into Asia.
     Machine products represented $39.8 million, or 68.2 percent, of Hardinge's
 total first-quarter sales, which reflects an increase of 30.5 percent from
 first quarter 2000 sales of $30.5 million.  Revenue from non-machine products
 and services were $18.6 million, or 31.8 percent of sales, an increase of
 7.5 percent from first quarter 2000 sales of $17.3 million.
     The Company's backlog was $68.4 million at March 31, 2001, including
 orders at HTT totaling $18.2 million. Total backlog increased 5.6 percent from
 December 31, 2000's backlog of  $64.8 million, which included HTT.  Excluding
 HTT, the backlog has increased 26.0 percent since March 31, 2000.
     Gross margin was 32.9 percent of sales, compared to 32.8 percent in the
 first quarter of 2000.
     Selling, general and administrative (SG&A) expenses increased to
 26.2 percent of sales from 24.9 percent in the same quarter one year earlier.
 Excluding $175,000 of amortization of goodwill from the HTT acquisition, SG&A
 was 25.9 percent of sales, compared to the full year 2000 average of
 25.5 percent.
     Interest expense for the quarter ended March 31, 2001 was $0.9 million
 compared to $0.4 million one year earlier. This increase includes $0.4 million
 for interest on debt incurred from the HTT acquisition.  Other increased
 borrowings were partially offset by lower interest rates in the most recent
 quarter.
     Robert E. Agan, Chairman and Chief Executive Officer, commented, "We are
 very pleased with our first quarter performance.  Considering the poor market
 conditions in the domestic machine tool industry, and the reluctance of many
 customers to finalize orders, these sales and earnings, and the increased
 backlog, are indeed encouraging.  Our long-term geographic diversification
 program and our new Quest line of advanced precision lathes were both strong
 contributors to these results.  We will aggressively continue our proven
 strategy for long-term shareholder return, with its focus on introducing
 effective new products, selectively expanding beyond our traditional markets
 and controlling production costs and operating expenses."
     "Our customers will continue to face a chronic shortage of the quality,
 skilled labor which efficient parts production requires.  Hardinge's new
 automated machines provide effective solutions for overcoming this obstacle.
 And outsourcing will continue to expand both domestically and in Europe.
 Hardinge, with our outstanding new products, our established reputation for
 both machine tool reliability and superior customer support, and our
 particular strengths in the job shop market, remains very well prepared to
 meet manufacturers' global needs for advanced material-cutting solutions,"
 J. Patrick Ervin, President and Chief Operating Officer added.
     "Our projections for the current year, however, have not changed. U.S.
 consumption of metal-cutting tools is down 31 percent, as reported in the
 latest data from the Association for Manufacturing Technology, the primary
 industry trade group.  And that's from the first quarter of 2000, at already
 depressed levels. While the Fed's recent interest rate cuts will be helpful
 and Congress's delivery of the overdue tax cut appears likely, our customers'
 willingness to expand capital investment this year is far from certain.
     "We anticipate second quarter revenues, including HTT, in the range of
 $52 million to $55 million with earnings of $0.20 to $0.23 per basic and
 diluted share.  We still anticipate that  U.S. sales will improve in the
 second half of the year, because of both higher shipments of new products and
 improved economic conditions.  With that in mind, we continue to expect full
 year sales, including HTT, in the range of $225 million to $235 million and
 2001 earnings in the range of $.90-$1.00 per basic and diluted share,"
 Mr. Ervin concluded.
     The Company will host its usual conference call at 10:00 am today to
 discuss its results.  The call can be accessed via the Internet live or as a
 replay at www.streetfusion.com .
     The conference call will be archived for replay through Streetfusion's web
 site for 14 days following the call.
     Hardinge Inc., founded more than 100 years ago, is an international leader
 in providing the latest industrial technology to companies requiring material-
 cutting solutions.  The Company designs and manufactures computer-numerically
 controlled metal-cutting lathes, machining centers, grinding machines,
 electrical discharge machines and other industrial products.  The Company's
 common stock trades on Nasdaq under the symbol "HDNG".  For more information,
 please visit the Company's website at www.hardinge.com .
     To receive additional information on Hardinge Inc., via fax at no charge,
 dial 1-800-PRO-INFO and enter code HDNG.
 
     This news release contains statements of a forward-looking nature relating
 to the financial performance of Hardinge Inc.  Such statements are based upon
 information known to management at this time.  The company cautions that such
 statements necessarily involve uncertainties and risk, and deal with matters
 beyond the company's ability to control and in many cases the company cannot
 predict what factors would cause actual results to differ materially from
 those indicated.  Among the many factors that could cause actual results to
 differ from those set forth in the forward-looking statements are fluctuations
 in the machine tool business cycles, changes in general economic conditions in
 the U.S. or internationally, the mix of products sold and the profit margins
 thereon, the relative success of the company's entry into new product and
 geographic markets, the company's ability to manage its operating costs,
 actions taken by customers such as order cancellations or reduced bookings by
 customers or distributors, competitors' actions such as price discounting or
 new product introductions, governmental regulations and environmental matters,
 changes in the availability and cost of materials and supplies, the
 implementation of new technologies and currency fluctuations.  Any
 forward-looking statement should be considered in light of these factors.  The
 company undertakes no obligation to revise its forward-looking statements if
 unanticipated events alter their accuracy.
 
 
                                 HARDINGE INC.
                               Income Statements
                 (Dollars in thousands, except per share data)
 
                                                          Three months ended
                                                              March 31,
                                                         2001           2000
 
     Net Sales                                        $58,433        $47,836
     Cost of sales                                     39,221         32,134
     Gross profit                                      19,212         15,702
 
     Selling, general and administrative expenses      15,313         11,921
     Income from operations                             3,899          3,781
 
     Interest expense                                     862            354
     Interest (income)                                   (129)          (111)
     Income before income taxes and minority interest
      in consolidated subsidiary and investment of
      equity company                                    3,166          3,538
 
     Income taxes                                         958          1,451
     Minority interest in (profit) loss of
      consolidated subsidiary                            (152)            75
     Profit in investment of equity company               137
 
     Net income                                        $2,193         $2,162
 
 
     Basic earnings per share                            $.25           $.24
     Weighted average shares outstanding                8,705          8,852
 
     Diluted earnings per share                          $.25           $.24
     Weighted average shares outstanding                8,711          8,934
 
 
     Other financial data:
 
     Gross margin                                       32.9%          32.8%
     Operating margin                                    6.7%           7.9%
     Capital expenditures                              $1,893           $787
     Depreciation and amortization                     $2,990         $2,578
 
 
                                   HARDINGE INC.
                               Summary Balance Sheet
                   (Dollars in thousands, except per share data)
 
 
                                                        At             At
                                                     Mar. 31,       Dec. 31,
                                                       2001           2000
 
     Working capital                                 $118,855       $118,042
     Total assets                                     284,265        283,116
     Short-term debt                                   13,438         11,142
     Long-term debt                                    46,269         47,417
     Shareholders' equity                             167,272        169,463
 
     Book value per share                              $18.79        $ 19.11
     Shares outstanding                                 8,904          8,868
     Ratio of total debt to total
      capitalization plus short-term debt              26.31%         25.68%
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X56538701
 
 

SOURCE Hardinge Inc.
    ELMIRA, N.Y., April 26 /PRNewswire/ -- Hardinge Inc. (Nasdaq:   HDNG), a
 leading producer of advanced material-cutting solutions, today reported net
 income of $2.19 million, or $0.25 per basic and diluted share, for the three
 months ended March 31, 2001.  This compares to net income of $2.16 million, or
 $0.24 per basic and diluted share, in the first quarter of 2000.  Hardinge's
 first quarter sales rose $10.6 million, or 22.2 percent, to $58.4 million.
 Excluding Hauser Tripet Tschudin (HTT), which the Company acquired on
 December 22, 2000, sales rose $1.9 million, or 4.0 percent.
     These results exceeded the Company's prior projection given in its 2000
 year end press release, which were earnings of $0.17 to $0.20 per basic and
 diluted share and sales of $52 million to $55 million.  The improvement
 resulted primarily from stronger international sales due to earlier than
 anticipated shipment of certain multiple machine orders.
     Sales in the U.S. market declined 16.2 percent to $27.4 million and
 accounted for 46.9 percent of total worldwide sales compared to 68.4 percent
 in the first quarter of 2000. Sales in Europe, however, increased
 83.7 percent, to $18.7 million, or 32.1 percent of total sales.  HTT provided
 approximately $5 million of the increase in European sales.  Other
 international sales rose 150.3 percent to $12.3 million, or 21.0 percent of
 total sales, reflecting strong shipments of turning machines into Asia.
     Machine products represented $39.8 million, or 68.2 percent, of Hardinge's
 total first-quarter sales, which reflects an increase of 30.5 percent from
 first quarter 2000 sales of $30.5 million.  Revenue from non-machine products
 and services were $18.6 million, or 31.8 percent of sales, an increase of
 7.5 percent from first quarter 2000 sales of $17.3 million.
     The Company's backlog was $68.4 million at March 31, 2001, including
 orders at HTT totaling $18.2 million. Total backlog increased 5.6 percent from
 December 31, 2000's backlog of  $64.8 million, which included HTT.  Excluding
 HTT, the backlog has increased 26.0 percent since March 31, 2000.
     Gross margin was 32.9 percent of sales, compared to 32.8 percent in the
 first quarter of 2000.
     Selling, general and administrative (SG&A) expenses increased to
 26.2 percent of sales from 24.9 percent in the same quarter one year earlier.
 Excluding $175,000 of amortization of goodwill from the HTT acquisition, SG&A
 was 25.9 percent of sales, compared to the full year 2000 average of
 25.5 percent.
     Interest expense for the quarter ended March 31, 2001 was $0.9 million
 compared to $0.4 million one year earlier. This increase includes $0.4 million
 for interest on debt incurred from the HTT acquisition.  Other increased
 borrowings were partially offset by lower interest rates in the most recent
 quarter.
     Robert E. Agan, Chairman and Chief Executive Officer, commented, "We are
 very pleased with our first quarter performance.  Considering the poor market
 conditions in the domestic machine tool industry, and the reluctance of many
 customers to finalize orders, these sales and earnings, and the increased
 backlog, are indeed encouraging.  Our long-term geographic diversification
 program and our new Quest line of advanced precision lathes were both strong
 contributors to these results.  We will aggressively continue our proven
 strategy for long-term shareholder return, with its focus on introducing
 effective new products, selectively expanding beyond our traditional markets
 and controlling production costs and operating expenses."
     "Our customers will continue to face a chronic shortage of the quality,
 skilled labor which efficient parts production requires.  Hardinge's new
 automated machines provide effective solutions for overcoming this obstacle.
 And outsourcing will continue to expand both domestically and in Europe.
 Hardinge, with our outstanding new products, our established reputation for
 both machine tool reliability and superior customer support, and our
 particular strengths in the job shop market, remains very well prepared to
 meet manufacturers' global needs for advanced material-cutting solutions,"
 J. Patrick Ervin, President and Chief Operating Officer added.
     "Our projections for the current year, however, have not changed. U.S.
 consumption of metal-cutting tools is down 31 percent, as reported in the
 latest data from the Association for Manufacturing Technology, the primary
 industry trade group.  And that's from the first quarter of 2000, at already
 depressed levels. While the Fed's recent interest rate cuts will be helpful
 and Congress's delivery of the overdue tax cut appears likely, our customers'
 willingness to expand capital investment this year is far from certain.
     "We anticipate second quarter revenues, including HTT, in the range of
 $52 million to $55 million with earnings of $0.20 to $0.23 per basic and
 diluted share.  We still anticipate that  U.S. sales will improve in the
 second half of the year, because of both higher shipments of new products and
 improved economic conditions.  With that in mind, we continue to expect full
 year sales, including HTT, in the range of $225 million to $235 million and
 2001 earnings in the range of $.90-$1.00 per basic and diluted share,"
 Mr. Ervin concluded.
     The Company will host its usual conference call at 10:00 am today to
 discuss its results.  The call can be accessed via the Internet live or as a
 replay at www.streetfusion.com .
     The conference call will be archived for replay through Streetfusion's web
 site for 14 days following the call.
     Hardinge Inc., founded more than 100 years ago, is an international leader
 in providing the latest industrial technology to companies requiring material-
 cutting solutions.  The Company designs and manufactures computer-numerically
 controlled metal-cutting lathes, machining centers, grinding machines,
 electrical discharge machines and other industrial products.  The Company's
 common stock trades on Nasdaq under the symbol "HDNG".  For more information,
 please visit the Company's website at www.hardinge.com .
     To receive additional information on Hardinge Inc., via fax at no charge,
 dial 1-800-PRO-INFO and enter code HDNG.
 
     This news release contains statements of a forward-looking nature relating
 to the financial performance of Hardinge Inc.  Such statements are based upon
 information known to management at this time.  The company cautions that such
 statements necessarily involve uncertainties and risk, and deal with matters
 beyond the company's ability to control and in many cases the company cannot
 predict what factors would cause actual results to differ materially from
 those indicated.  Among the many factors that could cause actual results to
 differ from those set forth in the forward-looking statements are fluctuations
 in the machine tool business cycles, changes in general economic conditions in
 the U.S. or internationally, the mix of products sold and the profit margins
 thereon, the relative success of the company's entry into new product and
 geographic markets, the company's ability to manage its operating costs,
 actions taken by customers such as order cancellations or reduced bookings by
 customers or distributors, competitors' actions such as price discounting or
 new product introductions, governmental regulations and environmental matters,
 changes in the availability and cost of materials and supplies, the
 implementation of new technologies and currency fluctuations.  Any
 forward-looking statement should be considered in light of these factors.  The
 company undertakes no obligation to revise its forward-looking statements if
 unanticipated events alter their accuracy.
 
 
                                 HARDINGE INC.
                               Income Statements
                 (Dollars in thousands, except per share data)
 
                                                          Three months ended
                                                              March 31,
                                                         2001           2000
 
     Net Sales                                        $58,433        $47,836
     Cost of sales                                     39,221         32,134
     Gross profit                                      19,212         15,702
 
     Selling, general and administrative expenses      15,313         11,921
     Income from operations                             3,899          3,781
 
     Interest expense                                     862            354
     Interest (income)                                   (129)          (111)
     Income before income taxes and minority interest
      in consolidated subsidiary and investment of
      equity company                                    3,166          3,538
 
     Income taxes                                         958          1,451
     Minority interest in (profit) loss of
      consolidated subsidiary                            (152)            75
     Profit in investment of equity company               137
 
     Net income                                        $2,193         $2,162
 
 
     Basic earnings per share                            $.25           $.24
     Weighted average shares outstanding                8,705          8,852
 
     Diluted earnings per share                          $.25           $.24
     Weighted average shares outstanding                8,711          8,934
 
 
     Other financial data:
 
     Gross margin                                       32.9%          32.8%
     Operating margin                                    6.7%           7.9%
     Capital expenditures                              $1,893           $787
     Depreciation and amortization                     $2,990         $2,578
 
 
                                   HARDINGE INC.
                               Summary Balance Sheet
                   (Dollars in thousands, except per share data)
 
 
                                                        At             At
                                                     Mar. 31,       Dec. 31,
                                                       2001           2000
 
     Working capital                                 $118,855       $118,042
     Total assets                                     284,265        283,116
     Short-term debt                                   13,438         11,142
     Long-term debt                                    46,269         47,417
     Shareholders' equity                             167,272        169,463
 
     Book value per share                              $18.79        $ 19.11
     Shares outstanding                                 8,904          8,868
     Ratio of total debt to total
      capitalization plus short-term debt              26.31%         25.68%
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X56538701
 
 SOURCE  Hardinge Inc.