Hardinge Inc. announced revised order guidance for the quarter ending June 30, 2010. The Company previously provided order guidance of $60 million - $65 million. The Company is now forecasting second quarter order volume of more than $80 million.
During the second quarter, Hardinge has received approximately $23 million in orders from the China-based consumer electronics company mentioned in the Company's first quarter earnings press release. The total second quarter orders from this customer are approximately $10 million above earlier projections.
"Broad based order activity in Asia and the U.S. is contributing to the more positive outlook for the quarter," said Richard L. Simons, President and Chief Executive Officer. "While margins on the large order will be below traditional margins because of the highly competitive environment that still exists for machine tools, landing this order demonstrates the strength of Hardinge's reputation in the Asian markets, as well as the Company's ability to design and deliver special purpose machine solutions for demanding industries. We expect the sales revenue from this order will be recognized over the last three quarters of this year."
Second quarter sales are expected to be approximately $55 million, slightly below previous guidance, reflecting ongoing delivery difficulties within the machine tool industry supply chain which is struggling to respond to the sudden and extraordinary demand growth in the Asian markets. Hardinge's EBITDA (earnings before interest, taxes and depreciation), excluding the costs of advisory fees related to Industrias Romi S.A.'s unsolicited tender offer, is still forecasted to be at or near breakeven for the second quarter.
Hardinge plans to release its complete second quarter results and hold its quarterly investor conference call on August 6, 2010.