ITEM 2.05 - Costs Associated with Exit or Disposal Activities
On April 25, 2023, the Board of Directors of The Eastern Company (the "Company")
approved a plan to close the Company's Associated Tool Makers Ltd. facility
located in Farndon, United Kingdom, which specializes in the design and
manufacture of molds for the plastic injection molding industry. The plan is
intended to address long-standing profitability issues at the Farndon facility.
The plan would include approximately 10 job reductions at the Farndon facility.
The Company expects to substantially complete this plan by the end of the third
quarter of 2023 and estimates total pre-tax charges associated with this action
to be between $3.5 million and $4.5 million, of which $0.4 million to $0.8
million is expected to be cash charges primarily for associate-related and other
exit costs, with the remainder representing non-cash charges primarily for
accelerated depreciation and other asset-related charges. The Company expects to
record the majority of these pre-tax charges and cash outflows in the second
quarter of 2023.
Forward-Looking Statements
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 "would," "should," "could," "may," "will,"
"believes," "estimates," "intends," "continues," "reflects," "plans,"
"anticipates," "expects," "potential," "opportunities," or similar terms or
variations of those terms or the negative of those terms, 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. The risks and
uncertainties that could cause actual results or events to differ materially
from those indicated by such forward-looking statements include those risks and
uncertainties set forth in our reports and filings with the Securities and
Exchange Commission (the "SEC"). Although the Company believes it has an
appropriate business strategy and the resources necessary for its operations,
future revenue and margin trends cannot be reliably predicted and the Company
may alter its business strategies to address changing conditions, including our
Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed
with the SEC on March 14, 2023. 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, except as required by law.
Item 7.01. Regulation FD Disclosure
On May 1, 2023, the Company issued a press release announcing the plan to close
the Associated Tool Makers, Ltd. facility. A copy of the press release is
furnished herewith as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Exhibit Description
99.1 Press Release issued by The Eastern Company, dated May 1, 2023
104 Cover Page Interactive Data File (cover page XBRL tags are embedded
within the Inline XBRL document)
2
© Edgar Online, source Glimpses