Hardinge Q4 sales, profit surge and firm expects strong 2012

ELMIRA — Hardinge, Inc. (NASDAQ: HDNG) reported that sales rose 11 percent and net income jumped 69 percent in the fourth quarter of 2011 from the year-ago period as the machine-tool market recovered and it boosted sales to North America.

Elmira–based Hardinge announced net income of $3.2 million, or 28 cents per share, in the latest quarter, on sales of $91 million, up from net income of $1.9 million, or 17 cents, on sales of $82 million in the fourth quarter of 2010.

“We delivered another solid quarter that culminated in a year of strong performance as we grew sales and demonstrated the
operational level inherent in our business,” Hardinge President, Chairman, and CEO Richard Simons said during a Feb. 16 conference call to discuss the company’s earnings report with investors and the media.

For the year, the machine-tool manufacturer reported a 33 percent increase in sales to $341.6 million. Net income rebounded strongly from a net loss of $5.2 million, or a 46 cent loss per share, in 2010 to net income of $12 million, or $1.02 per share. In 2010, the company said it suffered from both a weak global economy and supply-chain delays for some raw materials.

Hardinge benefited in 2011 from a strong rebound in the machine-tool industry as well as from efforts it has made in the past several years to expand its domestic market, reduce its capital requirements, and improve efficiency. 

Strong sales in North America bolstered the company, particularly during the fourth quarter, Simons said. While overall sales were up 11 percent for the quarter from a year earlier, sales fell 10 percent in Asia. However, a more than 100 percent increase in North America sales from $15.3 million in the fourth quarter of 2010 to $31.8 million in the fourth quarter of 2011 drove sales and profit growth, Simons said. Yearly sales to North America grew from $31.6 million in 2010 to $90 million in 2011. 

Sales to Europe, which is struggling with its own economic woes, dropped 13 percent to $26.4 million in the fourth quarter, and Simons said he expects those sales to remain relatively stable this year and not to affect overall sales growth.

In 2012, Hardinge should benefit from continued economic recovery as well as facility improvements the company made in 2011, Simons said. 

“We invested $17.2 million in 2011 to more than double our manufacturing capacity in China and for adding a facility and equipment for productivity enhancements in Switzerland,” he said. The increased capacity and productivity should enable Hardinge to grab more market share, he said.

In all, the company boosted capital expenditures to $19.2 million in 2011, from $3.7 million in 2010 and $3.2 million in 2009.

“We believe the long-term growth trend still makes sense,” Simons said. “We feel confident we can grow our business by targeting customers that value our quality, speed, and flexibility.”

The goal, he said, is to grow Hardinge’s sales faster than the machine-tool consumption rate. To make sure Hardinge is first in customers’ minds, he said the corporation will participate in a number of trade shows such as the International Manufacturing Technology Show in Chicago this September and the MACH 2012 Exhibition in England in April. The company will also hold an open house at its Elmira headquarters in June, grand-opening ceremonies for its new factory in China in May, and an open house at some point at its Switzerland facility.

Hardinge shares had surged in price, leading up to the Feb. 16 earnings report, rising 35 percent from $8.05 at the end of 2011 to $10.86 at the close of trading Feb. 15. The company’s stock price fell more than 8 percent to $9.95 on Feb. 16, after the earnings report and conference call. 

Hardinge (www.hardingeus.com) employs about 400 people in Elmira and another 700 in Asia and Europe. The company manufactures machine tools for the aerospace, agricultural, transportation, consumer-goods, communications, electronics, construction, defense, energy, pharmaceutical and medical-equipment, and recreation industries.       

ELMIRA — Hardinge, Inc. (NASDAQ: HDNG) reported that sales rose 11 percent and net income jumped 69 percent in the fourth quarter of 2011 from the year-ago period as the machine-tool market recovered and it boosted sales to North America.

Elmira–based Hardinge announced net income of $3.2 million, or 28 cents per share, in the latest quarter, on sales of $91 million, up from net income of $1.9 million, or 17 cents, on sales of $82 million in the fourth quarter of 2010.

“We delivered another solid quarter that culminated in a year of strong performance as we grew sales and demonstrated the
operational level inherent in our business,” Hardinge President, Chairman, and CEO Richard Simons said during a Feb. 16 conference call to discuss the company’s earnings report with investors and the media.

For the year, the machine-tool manufacturer reported a 33 percent increase in sales to $341.6 million. Net income rebounded strongly from a net loss of $5.2 million, or a 46 cent loss per share, in 2010 to net income of $12 million, or $1.02 per share. In 2010, the company said it suffered from both a weak global economy and supply-chain delays for some raw materials.

Hardinge benefited in 2011 from a strong rebound in the machine-tool industry as well as from efforts it has made in the past several years to expand its domestic market, reduce its capital requirements, and improve efficiency. 

Strong sales in North America bolstered the company, particularly during the fourth quarter, Simons said. While overall sales were up 11 percent for the quarter from a year earlier, sales fell 10 percent in Asia. However, a more than 100 percent increase in North America sales from $15.3 million in the fourth quarter of 2010 to $31.8 million in the fourth quarter of 2011 drove sales and profit growth, Simons said. Yearly sales to North America grew from $31.6 million in 2010 to $90 million in 2011. 

Sales to Europe, which is struggling with its own economic woes, dropped 13 percent to $26.4 million in the fourth quarter, and Simons said he expects those sales to remain relatively stable this year and not to affect overall sales growth.

In 2012, Hardinge should benefit from continued economic recovery as well as facility improvements the company made in 2011, Simons said. 

“We invested $17.2 million in 2011 to more than double our manufacturing capacity in China and for adding a facility and equipment for productivity enhancements in Switzerland,” he said. The increased capacity and productivity should enable Hardinge to grab more market share, he said.

In all, the company boosted capital expenditures to $19.2 million in 2011, from $3.7 million in 2010 and $3.2 million in 2009.

“We believe the long-term growth trend still makes sense,” Simons said. “We feel confident we can grow our business by targeting customers that value our quality, speed, and flexibility.”

The goal, he said, is to grow Hardinge’s sales faster than the machine-tool consumption rate. To make sure Hardinge is first in customers’ minds, he said the corporation will participate in a number of trade shows such as the International Manufacturing Technology Show in Chicago this September and the MACH 2012 Exhibition in England in April. The company will also hold an open house at its Elmira headquarters in June, grand-opening ceremonies for its new factory in China in May, and an open house at some point at its Switzerland facility.

Hardinge shares had surged in price, leading up to the Feb. 16 earnings report, rising 35 percent from $8.05 at the end of 2011 to $10.86 at the close of trading Feb. 15. The company’s stock price fell more than 8 percent to $9.95 on Feb. 16, after the earnings report and conference call. 

Hardinge (www.hardingeus.com) employs about 400 people in Elmira and another 700 in Asia and Europe. The company manufactures machine tools for the aerospace, agricultural, transportation, consumer-goods, communications, electronics, construction, defense, energy, pharmaceutical and medical-equipment, and recreation industries.