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EXHIBIT 99
NEWS BULLETIN HARDINGE INC.
FROM: RE: ONE HARDINGE DRIVE
ELMIRA, NY 14902
(NASDAQ: HDNG)
THE FINANCIAL RELATIONS BOARD
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B S M G W O R L D W I D E
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AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD/BSMG WORLDWIDE:
Richard L. Simons Kerry Thalheim John McNamara David Closs
EXEC VP & CFO General Inquiries Analyst Inquiries Media Inquiries
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(607) 734-2281 (212) 661-8030 (212) 661-8030 (212) 661-8030
Ext. 3052 Ext. 3027 Ext. 3047
FOR IMMEDIATE RELEASE
THURSDAY, OCTOBER 26, 2000
HARDINGE REPORTS 45% GAIN IN EARNINGS PER SHARE
FOR THE THIRD QUARTER
ELMIRA, N.Y., OCTOBER 26, 2000 -- Hardinge Inc. (Nasdaq: HDNG), a leading
producer of machine tools, today reported net income for the three months ended
September 30, 2000 totaled $1.4 million, or $0.16 per basic and diluted share,
compared with net income of $980,000, or $0.11 per basic and diluted share, for
the third quarter of 1999.
Hardinge's sales for the third quarter increased 6.8 percent to $45.3 million
from $42.4 million in the year ago quarter. Geographically, sales in the U.S.
market decreased by 4.3 percent to $27.1 million and accounted for 59.8 percent
of total sales compared to 66.7 percent in the same quarter of 1999. Sales to
Europe rose 44.2 percent, to $12.1 million, while other international sales rose
7.7 percent to $6.1 million.
Hardinge's order rate rose 54.2 percent to $57.2 million in the quarter ended
September 30, 2000, as compared to $37.1 million for the same quarter last year.
The Company's backlog increased by 30.6 percent to $48.7 million at September
30, 2000 from $37.3 million at the end of the second quarter. The backlog rose
17.9 percent from $41.3 million at September 30, 1999.
Machine products accounted for $ 27.7 million, or 61.1 percent of Hardinge's
total third-quarter sales, and non-machine products and services $17.6 million,
or 38.9 percent of sales. This compares with 59.9 percent and 40.1 percent for
the year ago period.
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Gross margin as a percentage of sales was 31.8 percent, very similar to the 31.6
percent experienced in the third quarter of 1999. Discounting of machines to
close orders still is prevalent throughout the world and continues to impact
profitability. During the quarter, the higher mix of sales outside the United
States had an unfavorable impact on gross margin as sales to the rest of the
world tend to carry lower net selling prices due to exchange rate pressures and
other distribution costs.
During the third quarter, selling, general and administrative (SG&A) expenses as
a percentage of sales decreased to 26.5 percent from 28.2 percent in the year
ago quarter. This improvement, 1.7 percent of sales, was achieved through cost
control efforts and occurred despite high promotional costs associated with the
Company's extensive participation in the biannual International Manufacturing
Technology Show (the IMTS) in September.
For the nine months ended September 30, 2000, Hardinge had net income of $5.5
million, or $0.63 per basic and diluted share, on sales of $140.9 million. This
represents a 31.3 percent increase in earnings per share and a 4.8 percent
increase in sales when compared with the $4.5 million, or $0.48 per share,
earned on sales of $134.5 million in the same nine months of 1999.
Robert E. Agan, Chairman and Chief Executive Officer, commented, "We are
extremely pleased with our third quarter 2000 performance. Earnings per share
rose 45 percent on approximately 7 percent higher sales, compared to the same
quarter last year. Profitability has benefited from our continuing aggressive
program to cut production costs and to hold SG&A flat with prior levels despite
higher volumes.
Mr. Agan added, "Machine tool customers responded well to our exhibits at the
IMTS show. This year we saw a substantial increase in orders compared with the
1998 show, and our order rate has continued to be strong since that time. But
more importantly, we saw strong orders throughout the quarter and the $57.2
million order rate was the highest we have seen since the second quarter of
1998. Our customers are increasingly seeking productivity tools to help them
overcome a chronic shortage of quality, skilled labor. And Hardinge, with our
traditional strengths, our expanded product line, and our recent successes in
product development, is well positioned to meet their needs for advanced
metal-cutting solutions.
The Company operates with a very low backlog due to the customer driven
requirement, in many cases, to ship machines within 2 to 8 weeks following the
order date. As a result, orders taken and shipped within a quarter can have a
significant impact on results for that quarter. This, along with other factors
mentioned in the forward-looking cautionary language statement at the end of
this release, makes efforts to predict the future very difficult. Based on the
current backlog and order rates, the Company expects 2000 net sales to be 6 to 7
percent above the $178.5 million realized in 1999. At this sales level, the
Company is projecting 2000 earnings to be between $.83 per share and $.86 per
share, which would be 28 to 32 percent above the $.65 per share earned in 1999.
Predicting into 2001 and beyond is even more difficult, but the current industry
trend, the strong order rate in the quarter, and new product introductions gives
the Company confidence that 2001 will see the continuation of an upward trend in
results.
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The Company will host its usual conference call at 10:00 am EDT today to discuss
its results. The call can be accessed via the Internet live or as a replay at .
The conference call will be archived for replay through Streetfusion's web site
for 14 days following the call.
Hardinge Inc., founded more than 100 years ago, is an international leader in
providing the latest industrial technology to companies requiring metal-cutting
solutions. 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." For more information, please visit the Company's
website at www.hardinge.com.
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To receive additional information on Hardinge Inc., via fax at no charge,
dial 1-800-PRO-INFO and enter code HDNG.
- FINANCIAL TABLES FOLLOW --
THIS NEWS RELEASE CONTAINS STATEMENTS OF A FORWARD-LOOKING NATURE RELATING TO
THE FINANCIAL PERFORMANCE OF HARDINGE INC. 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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HARDINGE INC.
INCOME STATEMENTS
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended Nine months ended
Sept. 30, Sept. 30,
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Net Sales $45,335 $42,399 $140,944 $134,474
Cost of sales 30,903 28,981 95,014 91,127
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Gross profit 14,432 13,418 45,930 43,347
Selling, general and
administrative expenses 12,008 11,950 36,039 36,118
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Income from operations 2,424 1,468 9,891 7,229
Interest expense 369 362 1,348 1,327
Interest (income) (106) (129) (325) (403)
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Income before income taxes
and minority interest in
consolidated subsidiary 2,161 1,235 8,868 6,305
Income taxes 639 515 3,188 2,229
Minority interest in (profit)
loss of consolidated subsidiary (153) 260 (166) 444
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Net income $1,369 $980 $5,514 $4,520
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Basic earnings per share $.16 $.11 $.63 $.48
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Weighted average
shares outstanding 8,715 9,264 8,766 9,366
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Diluted earnings per share $.16 $.11 $.63 $.48
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Weighted average
shares outstanding 8,715 9,265 8,797 9,385
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Other financial data:
Gross margin 31.8% 31.6% 32.6% 32.2%
Operating margin 5.3% 3.5% 7.0% 5.4%
Capital expenditures $399 - $1,828 $3,626
Depreciation and amortization $2,662 $2,581 $7,665 $7,817
</TABLE>
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HARDINGE INC.
SUMMARY BALANCE SHEET
(Dollars in thousands, except per share data)
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<CAPTION>
At At
SEPT. 30, DEC. 31,
2000 1999
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<S> <C> <C>
Working capital $107,716 $115,428
Total assets 234,927 241,457
Short-term debt 7,274 4,213
Long-term debt 15,605 23,380
Shareholders' equity 168,330 171,714
Book value per share $ 18.96 $ 18.60
Shares outstanding 8,879 9,234
Ratio of total debt to
total capitalization
plus short-term debt 11.97% 13.84%
</TABLE>
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