Mission Statement, Vision, & Core Values (2024) of The Eastern Company (EML)

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An Overview of The Eastern Company (EML)

General Summary of The Eastern Company (EML)

The Eastern Company, founded in 1857, is a diversified manufacturer of security products, metal castings, and industrial hardware. The company operates through several subsidiaries, which include Eberhard Manufacturing Company, Velvac, Inc., and Big 3 Precision Products. As of 2024, The Eastern Company has a broad product portfolio encompassing high-security locks, returnable transport packaging, truck mirror assemblies, and truck accessories.

For the fiscal year 2024, The Eastern Company reported net sales of approximately $206.1 million, up from $195.1 million in 2023, indicating a growth trajectory in its core product areas.

Company's Financial Performance in the Latest Financial Reports

In the third quarter of 2024, The Eastern Company achieved net sales of $71.3 million, compared to $62.0 million in the same period of 2023, marking an increase of approximately 14.8%. The gross margin for this quarter was 25.5%, up from 24.9% year-over-year.

The company reported a net income of $4.7 million, or $0.75 per diluted share, for the third quarter of 2024, compared to a net income of $3.5 million, or $0.55 per diluted share, for the same period in 2023. For the first nine months of fiscal 2024, net income was $11.7 million, or $1.87 per diluted share, compared to $7.8 million, or $1.24 per diluted share in 2023.

Key financial metrics for the third quarter of 2024 include:

Metric Q3 2024 Q3 2023
Net Sales $71.3 million $62.0 million
Gross Margin 25.5% 24.9%
Net Income $4.7 million $3.5 million
Earnings Per Share (Diluted) $0.75 $0.55

The company’s backlog as of September 28, 2024, increased by 13% to $97.2 million, driven by higher orders for truck mirror assemblies and returnable transport packaging.

Introduction to The Eastern Company as a Leader in the Industry

The Eastern Company stands out as a leader in the security and industrial hardware sectors, leveraging its long history and expertise to deliver innovative products. The company is recognized for its commitment to quality and customer satisfaction, which has fostered strong relationships with clients across various industries, including automotive, transportation, and logistics.

With a focus on expanding its product lines and enhancing operational efficiencies, The Eastern Company is well-positioned to capitalize on market opportunities and maintain its competitive edge. For those interested in understanding the factors behind the company's success, further details can be explored in the subsequent sections.




Mission Statement of The Eastern Company (EML)

Mission Statement Overview

The Eastern Company's mission statement is a guiding principle that articulates its purpose and commitment to stakeholders. It emphasizes the company's dedication to delivering high-quality products and services while focusing on innovation and sustainable practices. This mission is crucial for aligning the company's strategic goals and operational initiatives.

Core Component 1: Quality Products

The Eastern Company is committed to providing high-quality products that meet or exceed customer expectations. This commitment is reflected in the company's rigorous quality control processes and continuous improvement strategies. For instance, the gross margin for the third quarter of 2024 was 25.5%, an increase from 24.9% in the same quarter of 2023, indicating an improvement in product quality and cost efficiency.

Core Component 2: Innovation

Innovation is a key pillar of The Eastern Company's mission. The company invests significantly in research and development to enhance its product offerings. In the first nine months of 2024, product development expenses were $3.7 million, accounting for 1.8% of net sales. This investment is critical for maintaining competitiveness and addressing evolving market demands.

Core Component 3: Sustainability

The Eastern Company integrates sustainability into its operational framework. This is evident from initiatives aimed at reducing waste and energy consumption. As part of their sustainability efforts, the company aims to address the rising costs associated with raw materials and tariffs, successfully recovering most costs through strategic pricing adjustments.

Financial Metric Q3 2024 Q3 2023 9M 2024 9M 2023
Net Sales $9,273,000 $8,030,000 $71,300,000 $62,000,000
Gross Margin 25.5% 24.9% 25.2% 22.9%
Product Development Expense $1,077,930 $1,425,159 $3,739,214 $4,257,468
Selling & Administrative Expense $10,316,788 $8,452,163 $31,014,022 $29,051,436

As of September 28, 2024, The Eastern Company reported a current ratio of 2.6, indicating strong liquidity and an ability to meet short-term obligations. This financial stability supports the company's mission to invest in quality and innovation while pursuing sustainable practices.




Vision Statement of The Eastern Company (EML)

Vision Statement Overview

The Eastern Company (EML) aims to be a leader in the manufacturing sector, focusing on innovation, customer satisfaction, and sustainable practices.

Innovation and Product Development

As of 2024, The Eastern Company emphasizes innovation in its operations. Product development expenses were reported at $1.08 million for the third quarter of 2024, representing 1.5% of net sales. This is a decrease from 2.3% in the third quarter of 2023, indicating a strategic shift towards efficiency while maintaining product quality.

Customer Satisfaction

Customer satisfaction is a core component of EML's vision. The company reported a 9% increase in net sales for existing products in the third quarter of 2024. The backlog of orders grew by 13% to $97.2 million compared to $86.2 million in the previous year, reflecting strong customer demand and confidence in the company’s offerings.

Sustainability Initiatives

The Eastern Company is committed to sustainable practices. The gross margin as a percentage of sales was 25.5% in the third quarter of 2024, compared to 24.9% in the same quarter of 2023. This improvement reflects the company’s initiatives to recover increased costs through strategic pricing and operational efficiencies.

Financial Health and Growth

The financial health of The Eastern Company is reflected in its liquidity ratios. As of September 28, 2024, the current ratio stood at 2.6, indicating solid short-term financial stability. The company generated $8.3 million in cash from operations during the first nine months of fiscal 2024.

Market Positioning

In terms of market positioning, The Eastern Company is focused on expanding its market share through strategic acquisitions and partnerships. The company’s long-term debt as of September 28, 2024, was reported at approximately $60 million, reflecting its ongoing investment in growth opportunities.

Financial Metrics Q3 2024 Q3 2023 FY 2023
Net Sales Growth 9% 2% 6%
Gross Margin 25.5% 24.9% 22.9%
Current Ratio 2.6 2.6 2.6
Cash from Operations $8.3 million $5.4 million $9.7 million



Core Values of The Eastern Company (EML)

Integrity

Integrity is a foundational value at The Eastern Company (EML), guiding all interactions and business practices. It emphasizes honesty, transparency, and accountability in every aspect of the organization.

The Eastern Company demonstrates its commitment to integrity through rigorous compliance programs and ethical training for employees. In 2024, the company held over 15 integrity training sessions across various departments, ensuring that all employees understand ethical standards and compliance requirements.

Innovation

Innovation drives The Eastern Company's growth and product development strategies. The company prioritizes creating cutting-edge solutions in its manufacturing processes and product offerings.

In 2024, The Eastern Company invested approximately $3.7 million in research and development, accounting for about 1.8% of net sales. This investment facilitated the launch of 12 new products, including advanced truck mirror assemblies and rotary latches, which saw a 4.3% increase in sales volume compared to the previous year.

Customer Focus

Customer Focus is central to The Eastern Company's mission. The organization strives to meet and exceed customer expectations through quality products and exceptional service.

In 2024, customer satisfaction scores improved by 22%, attributed to enhanced service initiatives and product quality improvements. The company implemented a new customer feedback system, which resulted in actionable insights that led to a 15% increase in repeat business.

Teamwork

Teamwork is essential for fostering a collaborative environment within The Eastern Company. The organization believes that diverse teams working together lead to better problem-solving and innovation.

In 2024, The Eastern Company launched a cross-functional team initiative that resulted in a 30% reduction in project completion time. Employee engagement surveys indicated a 25% increase in collaboration satisfaction, highlighting the effectiveness of this teamwork approach.

Excellence

Excellence is a core value that The Eastern Company embodies in its pursuit of quality and performance. The company seeks to continuously improve its operations and products.

In 2024, The Eastern Company achieved a gross margin of 25.5%, up from 24.9% in 2023, reflecting its commitment to operational excellence and cost management. Additionally, the company was recognized with the "Best Manufacturer Award" for its exceptional product quality in the transportation sector.

Core Value Key Initiatives 2024 Performance Metrics
Integrity Compliance programs, ethical training 15 training sessions conducted
Innovation Investment in R&D, new product launches $3.7 million invested; 12 new products launched
Customer Focus Customer feedback system, service improvements 22% increase in satisfaction scores
Teamwork Cross-functional team initiatives 30% reduction in project completion time
Excellence Operational improvements, quality awards 25.5% gross margin; "Best Manufacturer Award"

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Resources:

  1. The Eastern Company (EML) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Eastern Company (EML)' financial performance, including balance sheets, income statements, and cash flow statements.
  2. SEC Filings – View The Eastern Company (EML)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.