SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 9, 1999
Commission file number:
000-15760
Hardinge Inc.
(Exact name of Registrant as specified in its charter)
New York 16-0470200
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Hardinge Drive Elmira, NY 14902
(Address of principal executive offices) (Zip code)
(607) 734-2281
(Registrant's telephone number including area code)
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ITEM 5. OTHER EVENTS
On April 9, 1999, Hardinge Inc. issued a press release announcing a
stock repurchase program and preliminary results for the first quarter of 1999.
The Board of Directors has authorized the repurchase of up to 1.0 million shares
of its common stock, or approximately 10% of the total shares outstanding. A
copy of the press release is included as Exhibit 99 to this Current Report on
Form 8-K and is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Not applicable
(b) Not applicable
(c) Exhibits
99 Press Release issued by registrant on April 9, 1999.
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SIGNATURES
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, thereunto duly authorized.
Hardinge Inc.
April 16, 1999 By:_/s/ Richard L. Simons_________
Date Richard L. Simons
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
EXHIBIT 99
HARDINGE INC.
One Hardinge Drive
Elmira, NY 14902
(Nasdaq: HDNG)
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
Richard L. Simons For Analyst Info: John McNamara
Senior VP & CFO For Media Info: Claudine Cornelis
(607) 734-2281 (212) 661-8030
FOR IMMEDIATE RELEASE
HARDINGE COMMENTS ON FIRST QUARTER
Repurchase Program Authorized For Up To 1.0 Million Shares
ELMIRA, N.Y., April 9, 1999 -- Hardinge Inc. (HDNG), a leading producer of
machine tools, today announced that it expects sales for the first quarter
ending March 31, 1999 to be approximately 30% below the $65.8 million in sales
reported for the first quarter of 1998. It expects to report net income for the
first quarter of between $2.0 million and $2.2 million, or $0.21 and $0.23 per
share. The first quarter of 1999 was characterized by very weak demand in the
early weeks, with improvement as the quarter progressed. As a result, backlog
increased by approximately $3.0 million to $35 million due to a surge in orders
at the end of the quarter. Hardinge is scheduled to formally release final
results for the first quarter on April 22, 1999 and will hold a conference call
at that time.
Robert E. Agan, Chairman, President and Chief Executive Officer,
commented, "As we have stated previously, we have been experiencing weakness in
all machine lines which we believe is prevalent throughout the industry.
However, it is still too early to determine whether this situation is a
short-term dip in demand or the start of a longer-term trend.
"Current market conditions are consistent with those of the last two
quarters. There are many manufacturing companies, both large and small, that are
holding back on purchases due to uneasiness about the current economy. Our sales
have been negatively impacted by these conditions. On the other hand, many
companies continue to buy machine tools as an investment in their future. It is
also important to note that despite the soft market, we continue to win orders
against our competitors, although discounting and special financing packages
have been necessary.
"The changing market conditions have significantly reduced our
visibility on future sales figures by creating a `book to bill' situation. Most
of our orders result in product shipment within three months. Trends suggest
that sales for the second quarter of 1999 will increase compared with the first
quarter, but will be lower year-over-year compared with the second quarter of
1998. Total sales for 1999 could be off by as much as 25% compared with 1998.
"We expect to benefit during the second quarter from the full impact of
our previously announced restructuring measures, including the reduction of our
U.S. workforce by approximately 15%. We will also continue our efforts to reduce
costs. However, since new product development and strong customer service are
the foundation upon which we build for future success, we do not intend to
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reduce our investments in these efforts. As a result of this strategy, along
with the discounting of machines, it is likely that our operating margins going
forward will continue to be depressed relative to historical performance.
Although it is still early in the year and visibility is limited, we are
anticipating that net income for 1999 could fall into the range of $11.0 million
to $12.5 million, or $1.16 to $1.32 per share," Mr. Agan concluded.
"In the midst of current industry conditions, we continue to
successfully introduce new products to the marketplace and plan to unveil a
number of new machines throughout the remainder of the year," continued Mr.
Agan. "We initiated sales of the new CONQUEST(R) Twin Turn 65, the most
technologically advanced machine ever offered by Hardinge, during the first
quarter and we are very encouraged by initial market interest, especially in
Europe. Additionally, we recently introduced the CONQUEST(R) GT27 Autoload at
WESTEC `99, a leading industry tradeshow. This gang-tooled turning cell has
built-in automation to provide affordable unattended operation for smaller job
shops, enhancing the appeal to this key target segment. "
The Company also announced that its Board of Directors has authorized
the repurchase of up to 1.0 million shares of its common stock, or approximately
10% of the total shares outstanding. Any such purchases will be made from time
to time in the open market or in privately negotiated transactions and will be
at the discretion of management. Shares repurchased will be available for use
under the Company's employee incentive compensation plans and for other general
corporate purposes.
Mr. Agan continued, "The decision to repurchase our stock reflects
management's optimism about the long-term performance of the company and future
prospects for the machine tool industry. We have an extensive history of
managing profitability through industry downturns and have confidence in our
ability to continue to do so. At current levels, it is our opinion that the
stock price does not accurately reflect our position and is undervalued."
Hardinge Inc., founded more than 100 years ago, is an international
leader in the machine tool industry. The company designs and manufactures
computer-numerically controlled metal-cutting lathes, machining centers,
grinding machines, electrical discharge machines and other industrial products.
The company's common stock trades on Nasdaq under the symbol "HDNG."
To receive additional information on Hardinge Inc., via fax at no charge,
dial 1-800-PRO-INFO and enter code HDNG.
This news release contains statements of a forward-looking nature relating to
the financial performance of Hardinge Inc. in 1999 . Such statements are based
upon information known to management at this time. The company cautions that
such statements necessarily involve uncertainties and risk, and deal with
matters beyond the company's ability to control and in many cases the company
cannot predict what factors would cause actual results to differ materially from
those indicated. Among the many factors that could cause actual results to
differ from those set forth in the forward-looking statements are fluctuations
in the machine tool business cycles, changes in general economic conditions in
the U.S. or internationally, the mix of products sold and the profit margins
thereon, the relative success of the company's entry into new product and
geographic markets, the company's ability to manage its operating costs, actions
taken by customers such as order cancellations or reduced bookings by customers
or distributors, competitors' actions such as price discounting or new product
introductions, governmental regulations and environmental matters, changes in
the availability and cost of materials and supplies, the implementation of new
technologies and currency fluctuations. Any forward-looking statement should be
considered in light of these factors. The company undertakes no obligation to
revise its forward-looking statements if unanticipated events alter their
accuracy.
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