Currency impacts continued to significantly influence sales revenue and gross margins. In comparing 2003 to 2002 net sales, the translation impact on foreign currency denominated transactions reduced the Company’s reported sales in Canadian dollars by $3.9 Million for the year, and $1.5 Million for the quarter due to the difference in average exchange rates over these periods. Underlying sales growth remains positive, with Canadian sales up 5.4%, US sales up 3.2% and international sales up 30% when compared in source currencies.

Fourth quarter earnings were also impacted by non-cash losses from the Company’s equity investment in Moloney Electric Inc., non-cash losses on translation of foreign operations, and year-end adjustments to tax provisions.

Total funded debt continues to be reduced, down $1,011,000 in the year, $697,000 in the quarter. $2,351,000 has been invested in the year in equipment and systems to improve long-term productivity. The balance sheet remains strong, net book value per share ending the year at $1.83.

Hammond Manufacturing Company Limited manufactures a broad range of products for the electronic and electrical products industry, including metallic and non-metallic enclosures, racks, small cases, outlet strips, surge suppressors and electronic transformers.

Robert F. Hammond, Chairman and CEO
Tel: (519) 822.2960
Fax: (519) 822.8987
Email: ir@hammfg.com