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<SEC-DOCUMENT>0001026608-06-000112.txt : 20060721
<SEC-HEADER>0001026608-06-000112.hdr.sgml : 20060721
<ACCEPTANCE-DATETIME>20060721163741
ACCESSION NUMBER:		0001026608-06-000112
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060721
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060721
DATE AS OF CHANGE:		20060721

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ACME UNITED CORP
		CENTRAL INDEX KEY:			0000002098
		STANDARD INDUSTRIAL CLASSIFICATION:	CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
		IRS NUMBER:				060236700
		STATE OF INCORPORATION:			CT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07698
		FILM NUMBER:		06974521

	BUSINESS ADDRESS:	
		STREET 1:		60 ROUND HILL ROAD
		CITY:			FAIRFIELD
		STATE:			CT
		ZIP:			06824
		BUSINESS PHONE:		203-254-6060

	MAIL ADDRESS:	
		STREET 1:		60 ROUND HILL ROAD
		CITY:			FAIRFIELD
		STATE:			CT
		ZIP:			06824

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ACME SHEAR CO
		DATE OF NAME CHANGE:	19710713
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>acme_8k072106.txt
<DESCRIPTION>FORM 8-K
<TEXT>
================================================================================


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                               ------------------

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

         Date of report (date of earliest event reported): July 21, 2006


                             ACME UNITED CORPORATION
             (Exact name of registrant as specified in its charter)

                               ------------------

          Connecticut                    001-07698              06-0236700
(State or other jurisdiction of         (Commission          (I.R.S. Employer
 incorporation or organization)         file number)        Identification No.)


60 Round Hill Road, Fairfield, Connecticut                        06824
 (Address of principal executive offices)                       (Zip Code)


       Registrant's telephone number, including area code: (203) 254-6060

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[_]  Written communications pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)

[_]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
     (17 CFR 240.14a-12)

[_]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[_]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))

<PAGE>

ITEM 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 21, 2006, Acme United Corporation (the "Company") issued a press release
announcing its financial results for the three and six months ended June 30,
2006. A copy of the press release is attached as Exhibit 99.1 to this current
report.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS.

(c)  Exhibits

     Exhibit Number             Description
     --------------             -----------
     99.1                       Press release dated July 21, 2006.



                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


ACME UNITED CORPORATION

By          /s/ WALTER C. JOHNSEN
         ------------------------------
                Walter C. Johnsen
                 President and
             Chief Executive Officer

Dated:   July 21, 2006



By          /s/ PAUL G. DRISCOLL
         ------------------------------
                Paul G. Driscoll
               Vice President and
              Chief Financial Officer

Dated:  July 21, 2006

<PAGE>

EXHIBIT INDEX


     Exhibit Number             Description
     --------------             -----------
     99.1                       Press release dated July 21, 2006.




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>acme_8k072106ex991.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
EXHIBIT 99.1

ACME UNITED CORPORATION            NEWS RELEASE
- --------------------------------------------------------------------------------
                            CONTACT: Paul G. Driscoll
                             Acme United Corporation
                   60 Round Hill Road    Fairfield, CT  06824
                  Phone: (203) 254-6060    FAX: (203) 254-6521
- --------------------------------------------------------------------------------


                       FOR IMMEDIATE RELEASE  July 21, 2006
                       ------------------------------------


ACME UNITED CORPORATION REPORTS 14% SALES GROWTH

FAIRFIELD, CONN. - July 21, 2006 - Acme United Corporation (AMEX:ACU) today
announced that net sales for the quarter ended June 30, 2006 were $17.0 million,
compared to $14.9 million in the comparable period of 2005, an increase of 14%.
Net sales for the six months ended June 30, 2006 were $29.2 million, compared to
$25.5 million in the same period in 2005, an increase of 15% (14% at constant
currency).

         Net income was $1,506,000 or $.40 per diluted share for the second
quarter ended June 30, 2006 compared, to $1,314,000 or $.34 per diluted share
for the comparable period last year, an increase of 15% in net income and 18% in
diluted earnings per share. Net income for the six months ended June 30, 2006
was $2,265,000, or $.61 per diluted share compared to $1,964,000, or $.52 per
diluted share in the comparable period last year, a 15% increase in net income
and 18% in diluted earnings per share.

         Net sales for the six months ended June 30, 2006 in the U.S. segment
increased 15% as the result of sales initiatives with several major retailers
and superstores. Sales in Europe and Canada increased by 12% in U.S. dollars and
8% in local currency. This sales growth was principally driven by new sales to a
large pan-European superstore and an expanded product line with a major European
retailer.

         Gross margins were 43.7% in the second quarter of 2006 versus 45.2% in
the comparable period last year. For the first six months of 2006 gross margins
were 44.4% compared to 45.5% in the same period in 2005. The lower margins in
2006 were primarily the result of one time expenses associated with filling
large orders on an expedited basis for the new business in Europe. These
expenses lay the foundation for future revenues to large multinational customers
in Europe.

                                      (1)
<PAGE>

         Walter C. Johnsen, President and CEO said, "Acme United had an
excellent quarter. We reported the highest quarterly sales and earnings in the
Company's history. We expanded our distribution channels, developed new products
and continued to gain market share. Acme has been selected for a second
consecutive year by Fortune Small Business as one of the top 100 fastest growing
public companies in the U.S."

         The Company's bank debt on June 30, 2006 was $10.2 million compared to
$5.0 million on June 30, 2005. The increase in bank debt during the twelve month
period was used to buy additional inventory of $3.8 million, repurchase $1.4
million of Acme stock, demolish a former manufacturing site for $1.5 million and
make dividend payments to shareholders of $.4 million. Based on anticipated cash
flow, the debt level is expected to decline during the second half of the year.


         ACME UNITED CORPORATION is a leading worldwide supplier of innovative
cutting, measuring and safety products to the school, home, office and
industrial markets.


         Forward-looking statements in this earnings release, include without
limitation, statements related to the Company's plans, strategies, objectives,
expectations, intentions and adequacy of resources. Investors are cautioned that
such forward-looking statements involve risks and uncertainties including
without limitation the following: (i) the Company's plans, strategies,
objectives, expectations and intentions are subject to change at any time at the
discretion of the Company; (ii) the Company's plans and results of operations
will be affected by the Company's ability to manage its growth, and (iii) other
risks and uncertainties indicated from time to time in the Company's filings
with the Securities and Exchange Commission.

                                     # # #

                                       (2)
<PAGE>
<TABLE>
                             ACME UNITED CORPORATION
                        CONSOLIDATED STATEMENT OF INCOME
                           SECOND QUARTER REPORT 2006
<CAPTION>

                                                        Quarter Ended         Quarter Ended
                                                        June 30, 2006         June 30, 2005
Amounts in $000's except per share data                  (Unaudited)           (Unaudited)
- -----------------------------------------------------------------------------------------------
<S>                                                       <C>                   <C>

Net sales                                                 $ 16,984              $ 14,904
Gross profit                                                 7,428                 6,731
Selling, general, and administrative expenses                4,995                 4,577
Interest expense                                               130                    43
Other (income) expense                                         (38)                   97
Pre-tax income                                               2,341                 2,014
Income tax expense                                             835                   700
Net income                                                   1,506                 1,314
Earnings per share basic                                      0.43                  0.37
Earnings per share diluted                                    0.40                  0.34




                                                      Six Months Ended      Six Months Ended
                                                        June 30, 2006         June 30, 2005
Amounts in $000's except per share data                  (Unaudited)           (Unaudited)
- -----------------------------------------------------------------------------------------------

Net sales                                                 $ 29,241              $ 25,487
Gross profit                                                12,980                11,592
Selling, general, and administrative expenses                9,254                 8,296
Interest expense                                               255                    56
Other (income) expense                                        (114)                  146
Pre-tax income                                               3,585                 3,094
Income tax expense                                           1,320                 1,130
Net income                                                   2,265                 1,964
Earnings per share basic                                      0.65                  0.56
Earnings per share diluted                                    0.61                  0.52
</TABLE>

                                      (3)
<PAGE>
<TABLE>
                             ACME UNITED CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEET
                           SECOND QUARTER REPORT 2006
                                   (Unaudited)
<CAPTION>

Amounts in $000's                                       June 30, 2006         June 30, 2005
- -----------------------------------------------------------------------------------------------
<S>                                                       <C>                   <C>
Assets:
Current assets:
     Cash                                                 $  1,053              $    602
     Accounts receivable, net                               14,960                12,625
     Inventories                                            14,990                11,141
     Prepaid and other current assets                        1,222                   818
                                               -------------------------------------------------
Total current assets                                        32,225                25,186

     Property and equipment, net                             2,566                 2,203
     Other assets                                            1,591                   809
                                               -------------------------------------------------
Total assets                                              $ 36,382              $ 28,198
                                               =================================================

Liabilities and stockholders' equity:
Current liabilities
     Accounts payable                                        3,715                 3,770
     Other current liabilities                               4,768                 4,559
                                               -------------------------------------------------
Total current liabilities                                    8,483                 8,329
Long-term debt                                              10,256                 5,022
Other non current liabilities                                1,084                   541
                                               -------------------------------------------------
                                                            19,823                13,892
Total stockholders' equity                                  16,559                14,306
                                               -------------------------------------------------
Total liabilities and stockholders' equity                $ 36,382              $ 28,198
                                               =================================================
</TABLE>

                                      (4)






</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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