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FOR IMMEDIATE RELEASE August 12 , 2021 The Eastern Company Reports SECOND QUARTER 2021 Financial results NET SALES from continuing operations INCREASED BY 55 % ; NET EARNINGS from continuing operations grew BY 32 % EXHIBIT 99.1 Eastern accelerates its transformation and focus on growing its Engineered Solutions segment . The Company reports its Diversified Products segment as " discontinued operations " while exploring strategic alternatives for these businesses . Strong demand across core markets drove second quarter of 2021 net sales from continuing operations growth of 55 % to $ 61.2 million . Customer orders were strong and backlog grew to $ 89.2 million at the end of the second quarter of 2021 , compared with $ 55.3 million at the end of the second quarter of 2020 . Rapid escalation in material costs and freight rates led gross margins for the second quarter of 2021 to decline to 23 % of net sales , compared to 26 % for the second quarter of 2020 . Earnings per diluted share from continuing operations for the second quarter of 2021 were $ 0.44 , an increase of 33 % over the second quarter of 2020. The Company took a one - time charge of $ 8.1 million , net of tax , associated with its discontinued operations . As a result , second quarter 2021 loss per diluted share related to the discontinued operations was ( $ 1.15 ) , and total loss per diluted share was ( $ 0.71 ) . Eastern's balance sheet continued to strengthen with net leverage of 2.3x as of the end of the second quarter of 2021 , down from 2.8x at the end of fiscal year 2020 . NAUGATUCK , CT - August 12 , 2021 The Eastern Company ( " Eastern " ) ( NASDAQ : EML ) , an industrial manufacturer of unique engineered solutions serving industrial markets , today announced the results of operations for the second fiscal quarter ended July 3 , 2021 . President and CEO August Vlak commented , " Sales from continuing operations for the second quarter of 2021 increased 55 % compared to the second quarter of 2020 , due to strong demand across a broad range of our commercial vehicle and industrial markets , including Class 8 trucks , service bodies and light trucks , recreational vehicles , and electric vehicle manufacturers . While the economic recovery has accelerated demand , we also attribute our growth to strong execution of the launch of new products and solutions . Order flow remained robust , and our backlog at the end of the second quarter 2021 reached $ 89.2 million , an increase of $ 33.9 million , or 61 % over the backlog at the end of the second quarter of 2020. " Mr. Vlak continued , " During the second quarter , our businesses demonstrated resilience in the face of significant disruptions in our global supply chains and were affected by sustained increases in raw material prices . All of our businesses experienced interruptions in transportation , which caused delays in shipments . Moreover , freight costs and prices of certain raw materials , including steel and resins , continued to rise . Over the last twelve months , the price of hot - rolled steel increased by 236 % and the price for cold - rolled steel increased by 174 % . Our businesses have been able to pass on a portion of these increases , but the impact of unrecoverable costs and the lag in our price increases have compressed our gross margin by several hundred basis points in the second quarter of 2021. We believe that increased stability in the prices of many of our raw materials and shipping rates will moderate the pressure on our gross margins in the future . " Mr. Vlak added , “ Our financial reporting for the second quarter of 2021 reflects our focus on our Engineered Solutions segment , which includes Eberhard as well as Big 3 Precision and Velvac , our more recent acquisitions . We are reporting our Diversified Products segment as ' discontinued operations , ' indicating that these legacy businesses no longer align with our strategy , and as such , we intend to explore strategic alternatives for each of them . We have recorded a one - time write - down of $ 8.1 million , net of tax , on the assets of the discontinued operations , which includes a charge to goodwill of $ 5.9 million . This write down reflects our belief that cash proceeds from potential divestitures are likely to approximate $ 25.0 million , over the next twelve months . " 1