Hardinge Q2 profit rises 17 percent despite flat sales

ELMIRA — Hardinge, Inc. (NASDAQ: HDNG) reported today that its net income rose to $3.6 million, or 31 cents a share, in the second quarter from $3.1 million, or 27 cents, in the year-earlier period.

The profit increase came despite net sales at the machine-tool manufacturer dipping 0.4 percent to $86.3 million from $86.7 million a year ago. Hardinge noted that foreign-currency translation hurt sales by about $2.1 million in the second quarter. It also said sales were up by 16 percent and net income higher by 49 percent when compared with this year’s first quarter.

Elmira–based Hardinge was able to grow sales to Europe and North America in the second quarter despite economic concerns. Sales in North America rose 12 percent to $20.7 million from $18.5 million a year ago, while second-quarter sales in Europe increased 35 percent to $34 million from $25.3 million a year prior.

Solid sales to North America reflected the strengthening of U.S. industrial production. Meanwhile, sales in Europe were focused primarily in Germany and the United Kingdom and were driven up by demand for the firm’s specialty, high-precision cylindrical grinding equipment, Hardinge said in its earnings news release.

Those sales gains were offset by a 26-percent plunge in sales to Asia from $42.9 million a year ago to $31.6 million in this year’s second quarter.

“Sales to Asia remain challenged by tough comparatives with last year’s surge and a general slowing of growth in that region,” Hardinge Chairman, President and CEO Richard Simons said in the release.

For the first six months of 2012, Hardinge reported net income of $6.1 million, or 52 cents per share, on sales of $161 million, compared with net income of $4.5 million, or 39 cents a share, on sales of $160 million.

“The long-term outlook for machine-tool demand remains promising,” Simons said. “Nonetheless, the fragility of the global economy and the uncertainty that surrounds it would appear to be tempering near-term demand. Order activity continues to be around the $80 million level per quarter, which implies a softer sales level for 2012 than we had originally anticipated.”

With that in mind, Simons said the company’s third-quarter sales should be in the same range they were in the second quarter.

Hardinge issued its earnings report before the open of trading today. The company’s stock was trading down 8 cents, or 0.9 percent, at $9.25 as of 10:20 a.m.

Hardinge (www.hardingeus.com) manufactures machine tools for the aerospace, agricultural, transportation, consumer-goods, communications, electronics, construction, defense, energy, pharmaceutical and medical-equipment, and recreation industries. The company employs about 400 people at its Elmira facility. Hardinge also operates plants in Switzerland, Taiwan, and China.

Contact DeLore at tdelore@tgbbj.com