FAIRFIELD, Conn.--(BUSINESS WIRE)--Jul. 17, 2009-- Acme United Corporation (NYSE AMEX:ACU) today announced that net sales for the second quarter ended June 30, 2009 were $19.2 million, compared to $22.7 million in the comparable period of 2008, a decrease of 16% (13% in local currency). Net income was $1,341,000, or $.40 per diluted share, for the quarter ended June 30, 2009, compared to $1,730,000 or $.47 per diluted share for the comparable period last year, a decrease of 22% in net income and 15% in diluted earnings per share.

Net sales for the six months ended June 30, 2009 were $30.5 million, compared to $37.0 million in the same period in 2008, a decrease of 18% (14% in local currency). Net income for the six months ended June 30, 2009 was $1,383,000, or $.41 per diluted share, compared to $2,482,000, or $.68 per diluted share in the comparable period last year, a 44% decrease in net income and 40% in diluted earnings per share. The lower net income is primarily the result of lower sales, partially offset by savings resulting from our cost savings plan.

Net sales for the quarter ended June 30, 2009 in the U.S. segment decreased 17% compared to the same period in 2008. Net sales for the six months ended June 30, 2009 in the U.S. segment decreased 19% compared to the same period in 2008. Net sales in Canada for the three and six months ended June 30, 2009 decreased by 12% and 17%, respectively, in U.S. dollars but declined approximately 1% for both periods respectively, in local currency compared to the same periods in 2008. European net sales for the three and six months ended June 30, 2009 decreased 3% and 5%, respectively, in U.S. dollars compared to the same periods in 2008 but increased 11% and 9% respectively, in local currency. Sales in Europe increased (in local currency) primarily due to increased distribution of manicure products.

Gross margins were 37.1% in the second quarter of 2009 versus 39.3% in the comparable period last year. For the first six months of 2009, gross margins were 37.4% compared to 40.3% in the same period in 2008. The gross margin decline for the three and six month periods was primarily due to fixed costs spread over lower sales, the weaker Canadian dollar which raised the cost of products in our Canadian segment and product mix.

Walter C. Johnsen, Chairman and CEO said, “Our sales have been impacted by weak demand due to the economic downturn. We have reduced costs in many areas, but continue to fund new product development. The earnings in the second quarter reflect aggressive attention to costs. Our debt has declined due to working capital reductions and earnings. We believe we are well positioned to take advantage of market opportunities during the coming quarters.”

The Company’s bank debt less cash on June 30, 2009 was $8.9 million compared to $11.3 million on June 30, 2008. During the 12 month period ended June 30, 2009, Acme purchased 208,065 shares of its common stock for approximately $1.9 million and paid $700,000 in dividends. As of June 30, 2009, there were 124,335 shares that may be purchased under the outstanding stock repurchase programs.

ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and safety products to the school, home, office and industrial markets.

Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, the following: (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the impact of current uncertainties in global economic conditions and the ongoing financial crisis affecting the domestic and foreign banking system and financial markets, including the impact on the Company’s suppliers and customers (iii) currency fluctuations (iv) the Company’s plans and results of operations will be affected by the Company’s ability to manage its growth, and (v) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

Source: Acme United Corporation

Acme United Corporation
Paul G. Driscoll, 203-254-6060
FAX: 203-254-6521