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| Press Release - October 25, 2005 |
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Hammond Manufacturing Company Limited,
394 Edinburgh Road North,
GUELPH , Ontario N1H 1E5.
Tel # ( 519 ) 822 - 2960
Fax # ( 519 ) 822 - 8987 |
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| TSE: HMM.SV.A |
HAMMOND MANUFACTURING COMPANY LIMITED announces financial results for
the third quarter ending September 30, 2005: |
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Nine months ending: |
Three months ending: |
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9/30/05 |
10/1/04 |
Change |
9/30/05 |
10/1/04 |
Change |
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| Net Sales |
50,215,000 |
45,553,000 |
10.2% |
16,962,000 |
15,097,000 |
12.4% |
| Earnings from Operations |
432,000 |
1,922,000 |
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(250,000) |
444,000 |
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| Net Earnings |
(114,000) |
469,000 |
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(294,000) |
(53,000) |
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| Earnings per Share |
($0.01) |
$0.04 |
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($0.03) |
$0.03 |
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| Shares Outstanding |
11,307,300 |
11,302,300 |
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| Net book value per share |
$1.83 |
$1.87 |
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GUELPH, ONTARIO – October 25, 2005 –
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. |
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| Information Contacts:
Robert F. Hammond, Chairman and CEO
Tel: (519) 822.2960
Fax: (519) 822.8987
Email: ir@hammfg.com |
| Guelph, Ontario, July 19, 2005 |
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