The Eastern Company reported robust third-quarter fiscal 2024 results, with net sales increasing 15% to $71.3 million, up from $62.0 million in the prior year period. Net income for the quarter was $4.7 million, or $0.75 per diluted share, compared to $3.5 million, or $0.55 per diluted share, in the third quarter of 2023. The company's gross margin improved to 25.5% from 24.9% year-over-year.
The company's Board of Directors announced the appointment of Ryan Schroeder as the new Chief Executive Officer, effective November 6, 2024, succeeding Mark Hernandez. Mr. Schroeder, an experienced executive in manufacturing, is expected to lead the company's strategic transformation aimed at accelerating growth and enhancing operational efficiency. This leadership change signals a new strategic direction for the company.
Eastern also disclosed its decision to sell the Big 3 Mold business, reclassifying it as discontinued operations. This strategic divestiture is intended to allow the company to focus resources on its core manufacturing and assembly capabilities in commercial vehicle, automotive, and other industrial end markets. The third quarter results included a $0.8 million operating loss and a $23.1 million write-down of the Big 3 Mold business to fair value.
The company's backlog as of September 28, 2024, increased 13% to $97.2 million from $86.2 million as of September 30, 2023, driven by increased orders for truck mirror assemblies and returnable transport packaging products. This growing backlog provides strong revenue visibility for future periods. During the third quarter, Eastern repurchased 50,000 shares of common stock under its authorized program.
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