As a leading global supplier of innovative cutting, measuring and safety products to just about every level of the consumer and industrial markets, Acme United Corp. (ACU) has been successful in strategically positioning itself to capitalize on growth opportunities as well as to weather any turbulent economic conditions. The company's record profits in the second quarter and significant progress in expanding its businesses is a sound testament to that. The company operates leading brands such as Westcott®, Clauss®, Camillus®, PhysiciansCare ® and Pac-Kit® for end markets ranging from everyday tools and supplies, to first aid kits and hardware equipment.
In Q2, Acme United reported an 18 percent increase in net income to $2,061,000, or $0.66 per diluted share, as compared to $1,743,000, or $0.56 per diluted share from a year ago. Revenue grew 16 percent to $27.6 million, up from $24.0 million from the same period a year ago.
"I am very pleased with the Company’s performance, which has just recorded its highest quarterly sales and earnings in its history," Walter C. Johnsen, Chairman and CEO, said in a statement. “Our Westcott, Clauss, Camillus, Physicians Care, and Pac-Kit brands each had record quarterly sales. In addition, our back-to-school sales continue to be strong.”
In June, the company completed the acquisition of certain assets of C-Thru Ruler Company, expanding its product offerings for drafting, measuring, lettering and stencil tools. Johnsen added that he expects C-Thru Ruler product line to contribute to Acme United's earnings going forward. The company continues to execute in its growth strategy, building on the momentum from the first quarter of 2012 in which earnings per share doubled, and the company successfully introduced new products through its various brands.
The company's board also approved a cash dividend of $0.07 per share in June, representing an annual yield of about 2.6 percent based on where shares are currently trading. Singular Research, an independent research firm specializing in emerging and under-followed companies, has a buy rating on Acme United with a target price of $14 per share.
Walter Johnsen, Acme United's Chairman and CEO, will be discussing the company's growth prospects and strategic outlook on Singular Research's Uncovered Values web conference on July 25, 2012 at 1pm PDT. For more information on the event or to sign up, click here.