Hardinge Inc. (HDNG, Financial) filed Quarterly Report for the period ended 2009-09-30.
Hardinge Inc. is an international leader in providing the latest industrial technology to companies requiring material cutting solutions. Hardinge is the leader in providing a wide range of highly reliable turning milling grinding & workholding solutions. The Company designs and manufactures computer-numerically controlled metal-cutting lathes machining centers grinding machines collets chucks indexing fixtures & other industrial products. The company never compromise on product design so customers can count on Hardinge to help them make the right part to the required specification every time. The breadth and depth of our product solutions are unmatched in the industry enabling us to support a variety of market applications including aerospace automotive medical energy construction agriculture mold tool and die and more. The Company has manufacturing operations in the United States Switzerland Taiwan and China and distributes machines in all major indust Hardinge Inc. has a market cap of $59.1 million; its shares were traded at around $5.12 with and P/S ratio of 0.2. The dividend yield of Hardinge Inc. stocks is 0.4%. Hardinge Inc. had an annual average earning growth of 28.2% over the past 5 years.
On October 30, 2009, we entered into a new CHF 7.0 million ($6.8 million equivalent) credit facility in our Swiss subsidiary. This new facility provides a working capital line of credit up to CHF 3.0 million ($2.9 million equivalent) and up to CHF 7.0 million ($6.8 million equivalent) for guarantees, documentary credit and margin cover for foreign exchange trades. This facility replaced a CHF 4.0 million ($3.9 million equivalent) with the same bank that provided up to CHF 0.5 million ($.05 million equivalent) for working capital and up to CHF 4.0 million ($3.9 million equivalent) for guarantees, documentary credit and margin cover for foreign exchange trades. Additionally, on October 30, 2009, we entered into a NT $100.0 million ($3.1 million equivalent) unsecured credit facility in our Taiwanese subsidiary. This new facility is for working capital purposes. Refer to Liquidity and Capital Resources for further details.
Orders, net of cancellations, for the three months ended September 30, 2009 were $46.7 million, a decrease of $45.4 million or 49% compared to the three months ended September 30, 2008. Orders, net of cancellations, for the nine months ended September 30, 2009 were $124.1 million, a decrease of $170.5 million or 58% compared to the nine months ended September 30, 2008. The decrease in orders is directly related to the global economic recession and related financial crisis which has affected all of the regions and product lines in which we conduct business, and is generally in line with overall industry statistics. Currency exchange rates had an unfavorable impact on new orders of approximately $0.8 million for the three months and $4.1 million for the nine months ended September 30, 2009 compared to the same period in 2008. Cancellations related to current economic conditions for the three and nine months ended September 30, 2009 were $1.6 million and $8.9 million, respectively.
European orders decreased by $22.8 million or 64% for the three months ended September 30, 2009 and $97.0 million or 72% for the nine months ended September 30, 2009 compared to the same periods in 2008. Decreases were noted across all of our product lines and all of the countries within Europe. Unfavorable foreign currency translation impact on European orders of approximately $0.7 million and $4.2 million for the three and nine months ended September 30, 2009, respectively, also caused some of the decrease.
Asia & Other orders decreased by $6.4 million or 22% for the three months ended September 30, 2009 and $23.4 million or 32% for the nine months ended September 30, 2009 compared to the same periods in 2008. The decrease was noted in Grinding, and Turning and Milling. Our China market, which had a strong second quarter with a $4.0 million or 29% increase over the prior year, experienced a decrease of $2.8 million or 14% for the three months ended September 30, 2009 and $3.6 million or 8% for the nine months ended September 30, 2009 compared to the same periods in 2008. The second quarter increase in order activity in China was attributed to two large orders in June totaling approximately $5.6 million in the computer and consumer electronics industry. The impact of foreign currency translation on Asia and Other orders for the three and nine months ended September 30, 2009 compared to the same periods in the prior year was not material.
Net sales for the three months ended September 30, 2009 were $50.1 million, a decrease of $36.6 million or 42% compared to the same period in 2008. Net sales for the nine months ended September 30, 2009 were $157.4 million, a decrease of $111.3 million or 41% compared to the same period in 2008. As with our order activity, the decreases in sales were primarily the result of the global economic recession and the related financial crisis. We experienced these decreases in all of the regions in which the Company conducts business for both the three and nine month periods ended September 30, 2009 compared to the same periods in the prior year with sales in Grinding decreasing by 32% and 28% and sales in Turning and Milling decreasing by 46% and 48%, respectively. Currency exchange rates also had an unfavorable impact on sales of approximately $0.8 million for the three months ended September 30, 2009 compared to the same period in 2008 and approximately $8.5 million for the nine months ended September 30, 2009, compared to the same period in 2008.
Read the The complete Report
Hardinge Inc. is an international leader in providing the latest industrial technology to companies requiring material cutting solutions. Hardinge is the leader in providing a wide range of highly reliable turning milling grinding & workholding solutions. The Company designs and manufactures computer-numerically controlled metal-cutting lathes machining centers grinding machines collets chucks indexing fixtures & other industrial products. The company never compromise on product design so customers can count on Hardinge to help them make the right part to the required specification every time. The breadth and depth of our product solutions are unmatched in the industry enabling us to support a variety of market applications including aerospace automotive medical energy construction agriculture mold tool and die and more. The Company has manufacturing operations in the United States Switzerland Taiwan and China and distributes machines in all major indust Hardinge Inc. has a market cap of $59.1 million; its shares were traded at around $5.12 with and P/S ratio of 0.2. The dividend yield of Hardinge Inc. stocks is 0.4%. Hardinge Inc. had an annual average earning growth of 28.2% over the past 5 years.
Highlight of Business Operations:
During March 2009, we entered into an agreement with a bank for a 366 day $10.0 million term loan. This term loan replaced a multi-currency secured credit facility, which as of March 15, 2009 had an outstanding balance of $8.0 million. During August 2009, we entered into two new credit facilities at our Swiss subsidiary. These new facilities provide a working capital line of credit up to CHF 5.0 million ($4.8 million equivalent) and up to CHF 7.5 million ($7.2 million equivalent) for guarantees, documentary credit and margin cover for foreign exchange trades. These two new facilities replaced a CHF 7.5 million ($7.2 million equivalent) facility with the same bank that provided up to CHF 3 million ($2.9 million equivalent) for working capital and up to CHF 7.5 million ($7.2 million equivalent) for guarantees, documentary credit and margin cover for foreign exchange trades. Refer to Liquidity and Capital Resources for further details.On October 30, 2009, we entered into a new CHF 7.0 million ($6.8 million equivalent) credit facility in our Swiss subsidiary. This new facility provides a working capital line of credit up to CHF 3.0 million ($2.9 million equivalent) and up to CHF 7.0 million ($6.8 million equivalent) for guarantees, documentary credit and margin cover for foreign exchange trades. This facility replaced a CHF 4.0 million ($3.9 million equivalent) with the same bank that provided up to CHF 0.5 million ($.05 million equivalent) for working capital and up to CHF 4.0 million ($3.9 million equivalent) for guarantees, documentary credit and margin cover for foreign exchange trades. Additionally, on October 30, 2009, we entered into a NT $100.0 million ($3.1 million equivalent) unsecured credit facility in our Taiwanese subsidiary. This new facility is for working capital purposes. Refer to Liquidity and Capital Resources for further details.
Orders, net of cancellations, for the three months ended September 30, 2009 were $46.7 million, a decrease of $45.4 million or 49% compared to the three months ended September 30, 2008. Orders, net of cancellations, for the nine months ended September 30, 2009 were $124.1 million, a decrease of $170.5 million or 58% compared to the nine months ended September 30, 2008. The decrease in orders is directly related to the global economic recession and related financial crisis which has affected all of the regions and product lines in which we conduct business, and is generally in line with overall industry statistics. Currency exchange rates had an unfavorable impact on new orders of approximately $0.8 million for the three months and $4.1 million for the nine months ended September 30, 2009 compared to the same period in 2008. Cancellations related to current economic conditions for the three and nine months ended September 30, 2009 were $1.6 million and $8.9 million, respectively.
European orders decreased by $22.8 million or 64% for the three months ended September 30, 2009 and $97.0 million or 72% for the nine months ended September 30, 2009 compared to the same periods in 2008. Decreases were noted across all of our product lines and all of the countries within Europe. Unfavorable foreign currency translation impact on European orders of approximately $0.7 million and $4.2 million for the three and nine months ended September 30, 2009, respectively, also caused some of the decrease.
Asia & Other orders decreased by $6.4 million or 22% for the three months ended September 30, 2009 and $23.4 million or 32% for the nine months ended September 30, 2009 compared to the same periods in 2008. The decrease was noted in Grinding, and Turning and Milling. Our China market, which had a strong second quarter with a $4.0 million or 29% increase over the prior year, experienced a decrease of $2.8 million or 14% for the three months ended September 30, 2009 and $3.6 million or 8% for the nine months ended September 30, 2009 compared to the same periods in 2008. The second quarter increase in order activity in China was attributed to two large orders in June totaling approximately $5.6 million in the computer and consumer electronics industry. The impact of foreign currency translation on Asia and Other orders for the three and nine months ended September 30, 2009 compared to the same periods in the prior year was not material.
Net sales for the three months ended September 30, 2009 were $50.1 million, a decrease of $36.6 million or 42% compared to the same period in 2008. Net sales for the nine months ended September 30, 2009 were $157.4 million, a decrease of $111.3 million or 41% compared to the same period in 2008. As with our order activity, the decreases in sales were primarily the result of the global economic recession and the related financial crisis. We experienced these decreases in all of the regions in which the Company conducts business for both the three and nine month periods ended September 30, 2009 compared to the same periods in the prior year with sales in Grinding decreasing by 32% and 28% and sales in Turning and Milling decreasing by 46% and 48%, respectively. Currency exchange rates also had an unfavorable impact on sales of approximately $0.8 million for the three months ended September 30, 2009 compared to the same period in 2008 and approximately $8.5 million for the nine months ended September 30, 2009, compared to the same period in 2008.
Read the The complete Report
