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): January 7, 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 January 7, 1999, Hardinge Inc. issued a press release announcing
the preliminary results for the fourth quarter of 1998, a workforce reduction
and a restructuring charge. The workforce has been reduced by approximately 200
full-time jobs. The company will take a pretax charge against earnings of
approximately $900,000 in the fourth quarter of 1998 to cover this workforce
reduction and the move of the company's Hansvedt facility from Illinois to
Elmira, New York. 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 January 7, 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.
January 13, 1999 By:_/s/ Richard L. Simons________________
Date Richard L. Simons
Senior Vice President and Chief Financial
Officer
(Principal Financial Officer)
EXHIBIT 99
NEWS BULLETIN RE:
FROM: FRB HARDINGE INC.
One Hardinge Drive
Elmira, NY 14902
(Nasdaq: HDNG)
- -------------------------------------------------------------------------------
The Financial Relations Board Inc.
FOR FURTHER INFORMATION:
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
Richard L. Simons For General Info: Jerry Meyer (212) 661-8030
Senior VP & CFO For Analyst Info: John McNamara (212) 661- 8030
(607) 734-2281 For Media Info: Claudine Cornelis (212) 661-8030
FOR IMMEDIATE RELEASE
January 7, 1999
HARDINGE ANNOUNCES PRELIMINARY RESULTS FOR FOURTH
QUARTER, WORK FORCE REDUCTION, RESTRUCTURING CHARGE
1998 Net Income Expected to be Record
Fourth Quarter Brought Decline in Orders
Charge will be $900,000 Pretax
ELMIRA, N.Y., JANUARY 7, 1999 - Hardinge Inc. (HDNG), a leading producer of
machine tools, said today that - exclusive of a restructuring charge - it
expects to report net income of between $5.1 million and $5.3 million, or $0.54
and $0.56 per share diluted, and net sales of between $66 million and $67
million for the fourth quarter of 1998.
These estimates are based on available preliminary information, are
unaudited, and could change slightly as a result of normal year-end adjustments.
They compare with record net sales of $66.1 million and record net income of
$5.6 million ($0.59 per share diluted) in the fourth quarter of 1997.
Robert E. Agan, chairman, president and chief executive officer, said
the preliminary fourth quarter 1998 results show that by year-end Hardinge was
being affected by a slowdown in orders that had hit other machine tool
manufacturers earlier. As a result of that slowdown, Mr. Agan said, Hardinge is
reducing its U.S. workforce by approximately 200 full-time jobs - roughly 15
percent of the total.
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Hardinge - 2
"We are very proud of our performance in 1998 as a whole, with sales
expected to total approximately $260 million and net income exclusive of
restructuring costs reaching a record of approximately $20.5 million," Mr. Agan
said.
"Through new product introductions and other programs we succeeded for
a time in bucking the trend that was adversely affecting order rates throughout
our industry. But after a very strong September, our orders also began to
decline. Profitability came under pressure as a result of discounts offered by
competitors attempting to sell off inventory during a period of weak demand.
Whether this is a short-term dip in demand or the start of a long-term trend -
and it is impossible to know at this point - an adjustment in inventory and
operations clearly is required."
Mr. Agan said also that Hardinge is preparing for the possibility that,
as a result of market conditions, sales in 1999 could be as much as 20 percent
lower than the 1998 total, with profitability affected similarly. He noted that
backlog declined significantly in the fourth quarter of 1998.
Hardinge has received virtually no orders from automotive customers
since the second quarter of 1998, and Mr. Agan said there is no evidence of a
turnaround in this market sector. A broader measure, a report issued this week
by the National Association of Purchasing Management, shows that manufacturing
activity fell in November to the lowest level since May, 1991. "The results of
this decline are evident in our order rates in all market segments," Mr. Agan
said.
To cover the costs of the workforce reduction and the costs of moving
the manufacture and support of Hansvedt electrical discharge machining equipment
from Illinois to Hardinge's headquarters facility in Elmira, N.Y., the company
will be taking a pretax charge against earnings of approximately $900,000
($540,000 or $0.06 per share fully diluted, after tax) in the fourth quarter of
1998. With this charge taken into account, the quarter's net income is expected
to be between $4.6 million and $4.8 million or $0.48 and $0.50 per diluted
share.
"We have long said that we were monitoring conditions in the machine
tool industry around the world, and that we would take whatever action proved
necessary to keep expenses at a level that ensures a healthy return on sales,"
Mr. Agan said. "We have a long history of managing profitably through downturns,
and we have confidence in our ability to continue doing so in the future."
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.
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Hardinge - 3
This news release contains statements of a forward-looking nature relating to
the financial performance of Hardinge Inc. in the fourth quarter of 1998 and 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.
