<SEC-DOCUMENT>0000031107-20-000014.txt : 20200429
<SEC-HEADER>0000031107-20-000014.hdr.sgml : 20200429
<ACCEPTANCE-DATETIME>20200429085349
ACCESSION NUMBER:		0000031107-20-000014
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20200429
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20200429
DATE AS OF CHANGE:		20200429

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EASTERN CO
		CENTRAL INDEX KEY:			0000031107
		STANDARD INDUSTRIAL CLASSIFICATION:	CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
		IRS NUMBER:				060330020
		STATE OF INCORPORATION:			CT
		FISCAL YEAR END:			0102

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35383
		FILM NUMBER:		20827610

	BUSINESS ADDRESS:	
		STREET 1:		112 BRIDGE ST
		STREET 2:		P O BOX 460
		CITY:			NAUGATUCK
		STATE:			CT
		ZIP:			06770
		BUSINESS PHONE:		2037292255

	MAIL ADDRESS:	
		STREET 1:		112 BRIDGE STREET
		STREET 2:		P O BOX 460
		CITY:			NAUGATUCK
		STATE:			CT
		ZIP:			06770
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>firstqtr_earnings2020.htm
<TEXT>
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  <div style="text-align: center; font-size: 14pt; font-weight: bold;">UNITED STATES</div>
  <div style="text-align: center; font-size: 14pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
  <div style="text-align: center; font-weight: bold;">Washington, D.C. 20549</div>
  <div style="margin-top: 12pt;"><br>
  </div>
  <div style="text-align: center; margin-top: 12pt; font-size: 14pt; font-weight: bold;">FORM 8-K</div>
  <div><br>
  </div>
  <div style="text-align: center; font-weight: bold;">CURRENT REPORT</div>
  <div style="text-align: center; font-weight: bold;">Pursuant to Section 13 or 15(d) of the</div>
  <div style="text-align: center; font-weight: bold;">Securities Exchange Act of 1934</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div style="text-align: center;"><u>Date of Report:</u><font style="font-weight: bold;"><u> April 29, 2020</u></font></div>
  <div style="text-align: center;">(Date of earliest event reported)</div>
  <div><br>
  </div>
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  </div>
  <div style="text-align: center; margin-top: 8pt; font-size: 18pt; font-weight: bold;">The Eastern Company</div>
  <div style="text-align: center;">&#160;(Exact name of Registrant as specified in its charter)</div>
  <div style="text-align: justify;"> <br>
  </div>
  <div><br>
  </div>
  <table cellspacing="0" cellpadding="0" id="z089b1b0c49514a089c3a7facfd22f4b9" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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          <div style="text-align: center; font-weight: bold;"><u>Connecticut</u></div>
        </td>
        <td style="width: 34.29%; vertical-align: top;">
          <div style="text-align: center; font-size: 12pt; font-weight: bold;"><u>001-35383</u></div>
        </td>
        <td style="width: 30.26%; vertical-align: top;">
          <div style="text-align: center; font-weight: bold;"><u>06-0330020</u></div>
        </td>
      </tr>
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        <td style="width: 35.45%; vertical-align: top;">
          <div style="text-align: center;">(State or other jurisdiction</div>
        </td>
        <td style="width: 34.29%; vertical-align: top;">
          <div style="text-align: center;">(Commission File Number)</div>
        </td>
        <td style="width: 30.26%; vertical-align: top;">
          <div style="text-align: center;">(IRS Employer</div>
        </td>
      </tr>
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        <td style="width: 35.45%; vertical-align: top;">
          <div style="text-align: center;">of incorporation)</div>
        </td>
        <td style="width: 34.29%; vertical-align: top;">&#160;</td>
        <td style="width: 30.26%; vertical-align: top;">
          <div style="text-align: center;">Identification No.)</div>
        </td>
      </tr>

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        <td style="width: 55.43%; vertical-align: top;">
          <div style="text-align: center; font-weight: bold;"><u>112 Bridge Street, Naugatuck, Connecticut</u></div>
        </td>
        <td style="width: 3.88%; vertical-align: top;">&#160;</td>
        <td style="width: 40.7%; vertical-align: top;">
          <div style="text-align: center; font-weight: bold;"><u>06770</u></div>
        </td>
      </tr>
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        <td style="width: 55.43%; vertical-align: top;">
          <div style="text-align: center;">(Address of principal executive offices)</div>
        </td>
        <td style="width: 3.88%; vertical-align: top;">&#160;</td>
        <td style="width: 40.7%; vertical-align: top;">
          <div style="text-align: center;">(Zip Code)</div>
        </td>
      </tr>

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  <div style="text-align: center; font-weight: bold;"><u>(203) 729-2255</u></div>
  <div style="text-align: center;">&#160;(Registrant&#8217;s telephone number, including area code)</div>
  <div><br>
  </div>
  <div style="text-align: center;">________________________________________________</div>
  <div style="text-align: center;">(Former name or former address, if changed since last report)</div>
  <div><br>
  </div>
  <div style="text-align: justify;">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 (see General Instruction A.2)</div>
  <div><br>
  </div>
  <div style="text-align: justify;">[ ]&#160; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</div>
  <div><br>
  </div>
  <div style="text-align: justify;">[ ]&#160; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</div>
  <div><br>
  </div>
  <div style="text-align: justify;">[ ]&#160; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</div>
  <div><br>
  </div>
  <div style="text-align: justify;">[ ]&#160; Pre-commencement communications pursuant to Rule 13e-4( c) under the Exchange Act (17 CFR 240.13e-4( c))</div>
  <div><br>
  </div>
  <div style="text-align: justify;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter)
    or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter).</div>
  <div><br>
  </div>
  <div style="text-align: right;">Emerging Growth Company <font style="font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font></div>
  <div><br>
  </div>
  <div style="text-align: justify;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
    revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. <font style="font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font></div>
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  </div>
  <div><br>
  </div>
  <div style="text-align: justify;">ITEM 2.02 &#8211; Results of Operations and Financial Condition</div>
  <div><br>
  </div>
  <div style="text-align: justify;">Press Release dated April 29, 2020 announcing the first quarter earnings for 2020 is attached hereto.</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div>ITEM 7.01 &#8211; Regulation FD Disclosure</div>
  <div><br>
  </div>
  <div>On April 29, 2020, The Eastern Company released the first quarter earnings of 2020.&#160; A copy of the Press Release dated April 29, 2020 announcing the first
    quarter earnings for 2019 is attached hereto.</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div>ITEM 9.01 &#8211; Financial Statements and Exhibits</div>
  <div><br>
  </div>
  <div>(d) Exhibits</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div><u>Exhibit No.</u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Title</u></div>
  <div><br>
  </div>
  <div>99.1<font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 72pt">&#160; </font>Press Release dated April 29, 2020 announcing the first quarter earnings for 2020.</div>
  <div><br>
  </div>
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  </div>
  <div style="text-align: center;">SIGNATURES</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;">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.</div>
  <div><br>
  </div>
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  </div>
  <div><br>
  </div>
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        <td style="width: 53.03%; vertical-align: middle;">
          <div style="text-align: justify; font-weight: bold;">The Eastern Company</div>
        </td>
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        <td style="width: 46.97%; vertical-align: middle;">&#160;</td>
        <td style="width: 53.03%; vertical-align: middle;">&#160;</td>
      </tr>
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        <td style="width: 46.97%; vertical-align: middle;">&#160;</td>
        <td style="width: 53.03%; vertical-align: middle;">&#160;</td>
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        <td style="width: 53.03%; vertical-align: middle;">&#160;</td>
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          <div style="text-align: justify;">Date: April 29, 2020</div>
        </td>
        <td style="width: 53.03%; vertical-align: middle;">
          <div style="text-align: justify;"><u>/s/August M. Vlak</u></div>
        </td>
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        <td style="width: 46.97%; vertical-align: middle;">&#160;</td>
        <td style="width: 53.03%; vertical-align: middle;">
          <div>August M. Vlak<br>
            President and Chief Executive Officer</div>
        </td>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>firstqtr2020_earnings.htm
<TEXT>
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  <div style="text-align: right;">Exhibit 99.1</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div>FOR IMMEDIATE RELEASE</div>
  <div>April 29, 2020</div>
  <div><br>
  </div>
  <div style="text-align: center; margin-bottom: 7.5pt;">THE EASTERN COMPANY REPORTS FIRST QUARTER 2020 RESULTS<br>
    NET SALES INCREASE 7% TO $65.3 MILLION; FIRST QUARTER 2020<br>
    EARNINGS GROW 84% TO $0.46 PER SHARE</div>
  <div><br>
  </div>
  <div style="text-align: justify;">NAUGATUCK, CT &#8211; April 29, 2020 - The Eastern Company (&#8220;Eastern&#8221;) (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving niche industrial markets, today announced the results of operations for the
    first quarter ended March 28,&#160;2020 and its response to the current COVID-19 pandemic.</div>
  <div><br>
  </div>
  <div style="text-align: justify;">President and CEO August Vlak commented, &#8220;Sales in the first quarter of 2020 increased 7% compared to the first quarter of 2019, driven by the acquisition of Big 3 Precision in August 2019. The acquisition was an
    important step toward the achievement of our long-term vision of building a larger and stronger company with a more significant presence with key customers. Sales growth due to the inclusion of Big 3 Precision was partly offset by a decline in sales
    across nearly all businesses during the second half of March, which was precipitated by customer shutdowns and temporary closures of four of our facilities in response to the COVID-19 pandemic, as well as considerable weakness in mining,&#8221; added Mr.
    Vlak.</div>
  <div><br>
  </div>
  <div style="text-align: justify;">&#8220;Despite ongoing uncertainty across our end markets and the macro-environment, we believe that our businesses are well positioned and will prove to be resilient once economic activity rebounds&#8221; said Mr. Vlak.&#160; As of
    April 29, all but two production facilities are operating and, at this time, the majority of our customers are expected to re-open as soon as May 4.&#160; Our backlog remained robust at the end of the first quarter.&#160; We are confident that the numerous
    actions that we have taken to control expenses position our businesses to withstand a significant and potentially more prolonged economic downturn.&#160; Actions that we have taken to date include the suspension of all hiring of salaried positions,
    cessation of discretionary spending, temporary reduction in work hours, initiation of furloughs, cancellation of certain merit-based salary increases, and a limitation on capital spending to only critical maintenance, safety, and regulatory projects,&#8221;
    remarked Mr. Vlak.</div>
  <div><br>
  </div>
  <div style="text-align: justify;">Mr. Vlak continued, &#8220;Our balance sheet remains strong.&#160; As of March 28<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;"></sup>, 2020, we have cash and cash equivalents of $16.5 million and an untapped $20 million revolver.&#160; Our net leverage ratio is 2.58x, and our
    fixed charge coverage ratio is 2.58x, both of which comply with our bank covenants of 4.25x and 1.25x, respectively. We believe that our strong balance sheet and ample liquidity position Eastern well to successfully navigate the current challenging
    business environment.&#8221;</div>
  <div><br>
  </div>
  <div style="font-weight: bold;">First Quarter 2020 Financial Results</div>
  <div><br>
  </div>
  <div style="text-align: justify;">Net sales in the first quarter of 2020 increased to $65.3 million from $60.9 million in the first quarter of 2019, primarily due to the acquisition of Big 3 Precision.&#160; Sales in the Industrial Hardware segment grew by
    23% to $47.2 million in the first quarter of 2020 from $38.4 million in the first quarter of 2019.&#160; Excluding Big 3 Precision, sales in the first quarter of 2020 decreased by 11% compared to the same period in 2019, as sales growth in the specialty
    vehicle, military, and off-highway markets were not sufficient to offset the sales decline during the second half of March, when certain of our customers closed their operations to help stop the spread of COVID-19.&#160; Sales in the Security Products
    segment fell by 16% in the first quarter of 2020 compared to the first quarter of 2019, primarily as a result of disruption in the supply chain related to extended closures of our facilities in China during the month of February 2020.&#160; At this time,
    our facilities in China are meeting demand.&#160; Sales in the Metal Products segment slipped by 27% in the first quarter of 2020 compared to the first quarter of 2019, as mining sales in the first quarter of 2020 were materially impacted by a decline in
    natural gas prices and a rapid deterioration in mining.</div>
  <div><br>
  </div>
  <div style="text-align: justify;">Net Income for the first quarter of 2020 increased by 84% to $2.9 million, or $0.46 per diluted share, from $1.6 million, or $0.25 per diluted share, in the first quarter of 2019.&#160; Operating profit margin in the
    Industrial Hardware segment improved to 7.3% of sales in the first quarter 2020 from 3.3% of sales in the first quarter of 2019, largely a result of the avoidance of significant restructuring costs and a reduction in product development expenses.&#160;
    While operating profit margin in the Security Products segment remained essentially flat at 6.6% of sales in the first quarter of 2020 compared to the first quarter of 2019, operating profit margin in the Metal Products segment deteriorated in the
    first quarter of 2020 compared to the first quarter of 2019 due to the lower absorption of fixed costs as a consequence of the sharp decline in sales.</div>
  <div style="margin-top: 12pt; margin-bottom: 12pt; font-weight: bold;">Conference Call and Webcast</div>
  <div style="text-align: justify; margin-top: 12pt; margin-bottom: 12pt;">The Eastern Company will host a conference call to discuss its results for the first quarter of 2020 and other matters on Thursday, May 7<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">th</sup> at 11:00 AM Eastern Time.&#160;
    Participants can access the conference call by phone at (888) 669-0687 (toll free in US &amp; Canada) or (862) 298-0702 (international).&#160; Participants can also join via the web at <u>https://www.webcaster4.com/Webcast/Page/1757/34516</u>.</div>
  <div style="font-weight: bold;">About The Eastern Company</div>
  <div><br>
  </div>
  <div style="text-align: justify;">The Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to niche markets, focusing on industries that offer long-term macroeconomic growth opportunities.&#160; The
    Company operates across three reporting segments -- Industrial Hardware, Security Products and Metal Products -- from locations in the U.S., Canada, Mexico, U.K., Taiwan and China.&#160; More information on the Company can be found at <u>www.easterncompany.com</u>.</div>
  <div><br>
  </div>
  <div style="font-weight: bold;">Safe Harbor for Forward-Looking Statements</div>
  <div style="text-align: justify;">Statements in this document about our future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation
    Reform Act of 1995 and the rules, regulations and releases of the Securities and Exchange Commission. Any statements that are not statements of historical fact, including statements containing the words &#8220;may,&#8221; &#8220;will,&#8221; "believes," "intends",
    "continues," "reflects," "plans," "anticipates," "expects," &#8220;potential&#8221; and similar expressions, should also be considered to be forward-looking statements. Readers should not place undue reliance on these forward-looking statements, which are based
    upon management's current beliefs and expectations. These forward-looking statements are subject to risks and uncertainties, and actual results might differ materially from those discussed in, or implied by, the forward-looking statements. Among the
    risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements include, but are not limited to, the impact of the ongoing COVID-19 pandemic, including the impact of
    shutdowns and other restrictions imposed in response to COVID-19 on our supply chain and production and customer demand for our products, changing customer preferences, lack of success of new products, loss of customers, cybersecurity breaches, changes
    in competition in our markets, and increased prices for raw materials resulting from tariffs on imported goods or otherwise. There are important, additional factors that could cause actual results or events to differ materially from those indicated by
    such forward-looking statements, including those set forth in our reports and filings with the Securities and Exchange Commission. We undertake no obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral,
    that may be made from time to time, whether as a result of new information, future events, or otherwise.</div>
  <div><br>
  </div>
  <div style="font-weight: bold;">Investor Relations Contacts</div>
  <div><font style="font-weight: bold;">The Eastern Company</font><br>
    August Vlak or John L. Sullivan III</div>
  <div>203-729-2255</div>
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        <td colspan="4" style="width: 70.71%; vertical-align: bottom;">
          <div>Consolidated Statement of&#160; Operations (unaudited)</div>
        </td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
      </tr>
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        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
      </tr>
      <tr>
        <td colspan="3" style="width: 52.53%; vertical-align: bottom;">
          <div>THE EASTERN COMPANY (NASDAQ - EML)</div>
        </td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
      </tr>
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        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
      </tr>
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        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
      </tr>
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        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td colspan="3" style="width: 47.47%; vertical-align: bottom;">
          <div style="text-align: center;">THREE Months Ended</div>
        </td>
      </tr>
      <tr>
        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom; border-bottom: 2px solid black;">
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        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom; border-bottom: 2px solid black;">
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        <td colspan="2" style="width: 39.38%; vertical-align: bottom;">
          <div>Net Sales</div>
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        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">
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        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td colspan="3" style="width: 52.53%; vertical-align: bottom;">
          <div>Net Income After Tax</div>
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        <td style="width: 18.18%; vertical-align: bottom;">
          <div style="text-align: right;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;2,895,817</div>
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        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">
          <div style="text-align: right;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,570,960</div>
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      <tr>
        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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        <td colspan="3" style="width: 52.53%; vertical-align: bottom;">
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        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">
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        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">
          <div style="text-align: right;">&#160;$&#160; &#160; &#160; &#160; &#160; &#160; 0.46</div>
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        <td style="width: 21.25%; vertical-align: bottom;">
          <div style="text-align: right;">&#160;$&#160; &#160; &#160; &#160; &#160; &#160; 0.25</div>
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        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">
          <div>Diluted</div>
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        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">
          <div style="text-align: right;">&#160;$&#160; &#160; &#160; &#160; &#160; &#160; 0.46</div>
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          <div style="text-align: right;">&#160;$&#160; &#160; &#160; &#160; &#160; &#160; 0.25</div>
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      <tr>
        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td colspan="2" style="width: 39.38%; vertical-align: bottom;">
          <div>Weighted average</div>
        </td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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        <td colspan="3" style="width: 52.53%; vertical-align: bottom;">
          <div>&#160;&#160;&#160;shares outstanding:</div>
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        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">
          <div>Basic</div>
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        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">
          <div style="text-align: right;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;6,237,921</div>
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        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">
          <div style="text-align: right;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;6,231,713</div>
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        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">
          <div>Diluted</div>
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        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">
          <div style="text-align: right;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;6,241,052</div>
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        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">
          <div style="text-align: right;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;6,264,829</div>
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        <td style="width: 8.08%; vertical-align: bottom;">&#160;</td>
        <td style="width: 31.3%; vertical-align: bottom;">&#160;</td>
        <td style="width: 13.14%; vertical-align: bottom;">&#160;</td>
        <td style="width: 18.18%; vertical-align: bottom;">&#160;</td>
        <td style="width: 8.05%; vertical-align: bottom;">&#160;</td>
        <td style="width: 21.25%; vertical-align: bottom;">&#160;</td>
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  <div><br>
  </div>
  <div><br>
  </div>
  <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
    <div style="page-break-after:always;" id="DSPFPageBreak">
      <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
  </div>
  <div><br>
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      <tr>
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          <div>Consolidated Balance Sheets (unaudited)</div>
        </td>
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      <tr>
        <td style="width: 54.97%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
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          <div>THE EASTERN COMPANY (NASDAQ - EML)</div>
        </td>
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      <tr>
        <td style="width: 54.97%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 54.97%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
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        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle; border-bottom: #000000 2px solid;">
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      <tr>
        <td style="width: 54.97%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
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        <td style="width: 54.97%; vertical-align: middle;">
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        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">
          <div style="text-align: right;">$</div>
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        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">16,532,035</div>
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        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">
          <div style="text-align: right;">$</div>
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        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">18,030,810</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Accounts Receivable</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">39,873,177</div>
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        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">37,941,900</div>
        </td>
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      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Inventories</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">55,274,876</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">54,599,266</div>
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      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Other assets</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle; border-bottom: #000000 2px solid;">
          <div style="text-align: right; font-weight: bold;">3,955,872</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle; border-bottom: #000000 2px solid;">
          <div style="text-align: right;">4,343,507</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Current Assets</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">115,635,960</div>
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        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">114,915,483</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Net property, plant and equipment</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">41,926,567</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">42,022,613</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
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        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">110,522,496</div>
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        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">111,382,405</div>
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      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle; padding-bottom: 2px;">
          <div>Right of use assets</div>
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        <td style="width: 2.25%; vertical-align: middle; padding-bottom: 2px;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle; border-bottom: 2px solid rgb(0, 0, 0);">
          <div style="text-align: right; font-weight: bold;">11,852,653</div>
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        <td style="width: 2.25%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle; border-bottom: 2px solid rgb(0, 0, 0);">
          <div style="text-align: right;">12,342,475</div>
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      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Total Assets</div>
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        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: #000000 4px double;">
          <div style="text-align: right;">$</div>
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        <td style="width: 16.95%; vertical-align: middle; border-bottom: #000000 4px double;">
          <div style="text-align: right; font-weight: bold;">279,937,676</div>
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        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: #000000 4px double;">
          <div style="text-align: right;">$</div>
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        <td style="width: 16.95%; vertical-align: middle; border-bottom: #000000 4px double;">
          <div style="text-align: right;">280,662,976</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
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      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Accounts payable</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">
          <div style="text-align: right;">$</div>
        </td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">22,629,076</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">
          <div style="text-align: right;">$</div>
        </td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">19,960,507</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Accrued compensation</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">2,216,765</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">3,815,186</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Other accrued expenses</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">3,797,178</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">2,967,961</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Current portion of long-term debt</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle; border-bottom: #000000 2px solid;">
          <div style="text-align: right; font-weight: bold;">5,187,689</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle; border-bottom: #000000 2px solid;">
          <div style="text-align: right;">5,187,689</div>
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      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Current Liabilities</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">33,830,708</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">31,931,343</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Deferred income tax</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">5,270,465</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">5,270,465</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Other long-term liabilities</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">2,465,260</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">2,465,261</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Lease liability</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">11,852,653</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">12,342,475</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Long-term debt</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">92,356,121</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">93,577,544</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Accrued postretirement benefits</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">1,001,509</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">1,007,146</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Accrued pension costs</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">28,052,482</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">28,631,485</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Shareholders' equity</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right; font-weight: bold;">105,108,478</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: middle;">
          <div style="text-align: right;">105,437,257</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: middle;">
          <div>Total Liabilities and Shareholders' equity</div>
        </td>
        <td style="width: 2.25%; vertical-align: middle;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: #000000 4px double;">
          <div style="text-align: right;">$</div>
        </td>
        <td style="width: 16.95%; vertical-align: middle; border-bottom: #000000 4px double;">
          <div style="text-align: right; font-weight: bold;">279,937,676</div>
        </td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom; border-bottom: #000000 4px double;">
          <div style="text-align: right;">$</div>
        </td>
        <td style="width: 16.95%; vertical-align: middle; border-bottom: #000000 4px double;">
          <div style="text-align: right;">280,662,976</div>
        </td>
      </tr>
      <tr>
        <td style="width: 54.97%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
        <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
        <td style="width: 3.31%; vertical-align: bottom;">&#160;</td>
        <td style="width: 16.95%; vertical-align: bottom;">&#160;</td>
      </tr>

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</DOCUMENT>
</SEC-DOCUMENT>
