Hardinge, Inc. (HDNG)

ELMIRA, N.Y.--(BUSINESS WIRE)--Hardinge Inc. (NASDAQ:HDNG), a leading international provider of advanced metal-cutting solutions and accessories, reported financial results for its third quarter ended September 30, 2017. Chuck Dougherty, President and Chief Executive Officer, commented, “We achieved higher earnings in the quarter as a result of strong sales growth driven by improved global demand for our products and machining solutions. Cash generation increased in the quarter and year-to-date from higher net income combined with a heightened emphasis on working capital management. We continue to expect 2017 will be a solid year, even as orders have varied considerably from quarter to quarter. For the nine month period, orders were up 9% and we ended September with backlog remaining very strong at $135 million and, similar to the second quarter, at a level we have not seen in five years, supporting our expectation for the year.” He noted, “Looking further out, our focus is on building a business with improved earnings power by optimizing our footprint and further reducing our cost structure. This includes the execution of the restructuring program for Europe announced earlier this year that is expected to produce approximately $2 million to $2.5 million in annual cost savings. Importantly, we have initiated a larger, multi-year plan that encompasses changes throughout our global footprint that we believe will not only reduce our cost structure, but improve our operating efficiencies. As part of this expanded program, we have identified approximately $10 million in annualized cost reductions beyond the previously announced program.” “Furthermore, our team has been enhanced with fresh talent and experience through the addition of new leadership for global operations, human resources and business development. We are moving quickly to transform Hardinge by leveraging our global capabilities in operations, engineering and sales to build a better business model that can heighten our financial performance,” he concluded. As noted, the Company is continuing its previously announced restructuring activities, which included the recent agreement to sell a 41,500 square foot manufacturing facility in Biel, Switzerland for $9.8 million. The sale is expected to close in the second quarter of 2018. The combined restructuring programs are expected to result in over $12 million in annualized cost reductions. Initial benefits of the combined restructuring and cost take-out efforts are expected to be realized as early as the first quarter of 2018 with the full benefit being realized later in the year. Total restructuring costs are expected to be approximately $6.7 million. Through the first nine months of 2017, total restructuring costs have been $2.8 million. Sales, Orders and Backlog for Third Quarter and First Nine Months of 2017 North America: Sales of $27.5 million in the quarter grew by 11% from strong backlog at the end of the trailing second quarter. Orders for the region were $23.2 million, down 13% in the quarter, and have fluctuated from quarter to quarter as a result of changes being implemented with sales channel partners. For the first nine months of 2017, sales to North America were up 13% to $71.3 million and orders decreased 3% to $73.8 million. Europe: Sales in Europe of $22.4 million were up 23% from increased demand across all product lines. Orders in the region were up 15%. Excluding favorable foreign currency translation of $0.5 million on both sales and orders, sales increased 20% and orders increased 13%. For the first nine months of 2017, sales to Europe of $62.4 million were down 3% while orders increased 16% to $74.8 million. Excluding unfavorable foreign currency translation of $0.6 million and $1.1 million, sales decreased 2% and orders increased 18%, respectively. Asia: Sales of $35.1 million for the quarter were up 45% as strong growth in China was supplemented by unusually high sales in other parts of Asia. Orders of $27.3 million were relatively unchanged. Excluding favorable foreign currency impact of $0.2 million and $0.1 million on sales and orders, respectively, sales were up 44% and orders were flat. For the first nine months of 2017, sales of $94.1 million and orders of $91.0 million were up 21% and 14%, respectively. Excluding unfavorable foreign currency translation of $1.6 million on sales and $1.7 million on orders, sales were up 23% and orders increased 16%. A more stabilized economy in China and growth in other areas of Asia has supported demand for machine tools, including the increased investment in factory automation to address higher labor costs. Consolidated backlog: Backlog at September 30, 2017 was $135 million, up 16% from September 30, 2016. Third Quarter Operating Review Gross profit increased $5.5 million, or 24%, on higher volume. As a percent of sales, gross profit was 34% in the quarter, as unfavorable mix and lower absorption for machines was offset by strong margins on our workholding products. Excluding unusual costs in both periods, selling, general and administrative (SG&A) expenses increased $1.7 million in the quarter due to higher commissions related to increased volume and higher incentive based compensation expense from stronger financial results. The prior-year period included $1.1 million of charges related to severance and a pension obligation settlement. Operating income of $3.0 million increased $3.6 million as a result of improved operating leverage. Operating margin expanded 4.5 points to 3.5% of sales. Adjusted Non-GAAP operating income(1) was $3.9 million in the quarter, up significantly from $0.7 million in the prior-year period. The adjusted operating margin was 4.5%, a 3.6 point expansion. Net income was $2.2 million, or $0.17 per diluted share, up from a $1.4 million loss, or $(0.11) per diluted share in the prior-year period. Adjusted Non-GAAP net income(1) was $3.0 million, or $0.24 per diluted share, a significant increase over last year’s third quarter adjusted net loss of $0.2 million, or $(0.02) per diluted share. First Nine Months 2017 Review For the first nine months, gross profit improved $7.2 million to $76.6 million on higher sales. Gross margin was relatively unchanged from the prior period, as unfavorable mix was offset by cost savings from the 2015 restructuring program. Excluding $1.4 million of unusual costs associated with our strategic review and severance charges in the current period and $2.3 million of unusual charges in the prior year period, SG&A decreased $0.6 million. Lower sales and marketing expenses were partially offset by increased incentive based compensation. Operating income of $3.4 million increased $5.0 million. Adjusted Non-GAAP operating income(1) was $7.5 million, up from $1.3 million in the prior year. Adjusted operating margin was 3.3%, a 2.7 point expansion from leverage on higher volume. Net income was $2.7 million, or $0.21 per diluted share, improved from a $2.5 million loss, or $(0.19) per diluted share, in the first nine months of 2016. Adjusted Non-GAAP net income(1) was $6.7 million, or $0.53 per diluted share, up significantly from $0.3 million, or $0.03 per diluted share last year. (1)Management believes that the use of non-GAAP measures helps in the understanding of the Company's operating performance. See page 9 of this release for the reconciliation tables between reported amounts and non-GAAP measures discussed in this document. Webcast and Conference Call Hardinge will host a conference call and webcast today at 11:00 a.m. ET. During the conference call and webcast, Charles P. Dougherty, President and CEO, and Douglas J. Malone, Senior Vice President and CFO, will review the financial and operating results for the quarter, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion. Their review will be accompanied by a slide presentation which will be available on Hardinge’s website at http://ir.hardinge.com/events.cfm. The conference call can be accessed by calling (201) 689- 8560. The listen-only audio webcast can be monitored at http://ir.hardinge.com/events.cfm. A telephonic replay will be available from 2:00 p.m. ET the day of the call through Thursday, November 16, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13671990. Alternatively, the archive can be heard on the Company’s website at http://ir.hardinge.com/events.cfm. A transcript will also be posted to the website, once available. About Hardinge Hardinge is a leading global designer and manufacturer of high precision, computer-controlled machine tool solutions developed for critical, hard-to-machine metal parts and of technologically advanced workholding accessories. The Company’s strategy is to leverage its global brand strength to further penetrate global market opportunities where customers will benefit from the technologically advanced, high quality, reliable products Hardinge produces. With approximately two-thirds of its sales outside of North America, Hardinge serves the worldwide metal working market. Hardinge’s machine tool and accessory solutions can also be found in a broad base of industries to include aerospace, agricultural, automotive, construction, consumer products, defense, energy, medical, technology and transportation. Hardinge applies its engineering design and manufacturing expertise in high performance machining centers, high-end cylindrical and jig grinding machines, SUPER-PRECISION® and precision CNC lathes and technologically advanced workholding accessories. Hardinge has manufacturing operations in China, France, Germany, India, Switzerland, Taiwan, the United Kingdom and the United States. The Company regularly posts information on its website: http://www.hardinge.com. Safe Harbor Statement This news release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) that involve risks and uncertainties concerning Hardinge’s expected financial performance and its strategic and operational plans. Such statements are based on management's current expectations, assumptions, estimates, and projections, as well as information currently available to Hardinge, which involve risks and uncertainties. Any statements that are not statements of historical fact or that are about future events may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. The actual results or outcomes and the timing of certain events may differ significantly from those discussed in any forward-looking statements. Certain factors could cause actual results to differ from those anticipated in the forward-looking statements in this release, including fluctuations in the machine tool business, the cyclical nature of our markets, changes in general economic conditions in the U.S. or internationally, the mix of products sold and the profit margins thereon, the relative success of our entry into new product and geographic markets, our ability to manage our operating costs and announced cost reduction initiatives, product liability claims, work stoppages or other labor issues, our ability to execute on our previously announced real estate sale and other restructuring activities, actions taken by customers such as order cancellations or reduced bookings by customers or distributors, competitors’ actions such as price discounting or new product introductions, governmental regulations and environmental matters, loss of key management or other personnel, failure of operating equipment or information technology infrastructure, changes in the availability and cost of materials and supplies, the implementation of new technologies and currency fluctuations, and other risks and factors described in our quarterly reports on Form 10-Q and annual reports on Form 10-K and in our other filings with the Securities and Exchange Commission or in materials incorporated therein by reference. Further risks and uncertainties associated with the previously announced indication of interest by Privet to acquire Hardinge include uncertainties as to whether any proposed transaction will occur, and if it does, the timing of any proposed transaction, the risk that even if a proposal is made and a transaction is agreed upon it will be unable to be consummated, and the risk that the proposal will make it more difficult for Hardinge to execute its strategic plan. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. (in thousands, except share and per share data) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, (in thousands, except share and per share data) September 30,2017 December 31,2016 (in thousands) Nine Months EndedSeptember 30, ($ in thousands) Year-over-Year% Change Sequential% Change ($ in thousands) Year-over-Year% Change ($ in thousands) Year-over-Year% Change Sequential% Change ($ in thousands) Year-over-Year% Change 73,825 76,163 Hardinge believes that providing non-GAAP financial measures such as adjusted loss from operations, adjusted net income, and adjusted earnings per diluted share is important for investors and other readers of Hardinge's financial statements, as they are used as an analytical indicator by Hardinge management to better understand its operating performance. (in thousands) Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months EndedSeptember 30, 2017 Nine Months EndedSeptember 30, 2016 (in thousands, except per share data) Three Months EndedSeptember 30, 2017 Three Months EndedSeptember 30, 2016 Nine Months EndedSeptember 30, 2017 Nine Months EndedSeptember 30, 2016

ELMIRA, N.Y.--(BUSINESS WIRE)--Hardinge Inc. (NASDAQ:HDNG), a leading international provider of advanced metal-cutting solutions and accessories, will announce its third quarter 2017 financial results before the opening of financial markets on Thursday, November 9, 2017. Chuck Dougherty, President and Chief Executive Officer, and Doug Malone, Chief Financial Officer, will host a conference call and simultaneous webcast to review the financial and operating results for the quarter, as well as the Company’s outlook. A question and answer session will follow. Hardinge Third Quarter 2017 Financial Results Conference Call Internet webcast link and supplemental slide presentation: ir.hardinge.com/events.cfm An audio replay will be available from 2:00 p.m. ET on the day of the call through Thursday, November 16, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13671990. The webcast replay will be available via the Company’s website at ir.hardinge.com/events.cfm. A transcript will also be posted once available. About Hardinge Hardinge is a leading global designer and manufacturer of high precision, computer-controlled machine tool solutions developed for critical, hard-to-machine metal parts and of technologically advanced workholding accessories. The Company’s strategy is to leverage its global brand strength to further penetrate global market opportunities where customers will benefit from the technologically advanced, high quality, reliable products Hardinge produces. With approximately two-thirds of its sales outside of North America, Hardinge serves the worldwide metal working market. Hardinge’s machine tool and accessory solutions can also be found in a broad base of industries to include aerospace, agricultural, automotive, construction, consumer products, defense, energy, medical, technology and transportation. Hardinge applies its engineering design and manufacturing expertise in high performance machining centers, high-end cylindrical and jig grinding machines, SUPER-PRECISION® and precision CNC lathes and technologically advanced workholding accessories. Hardinge has manufacturing operations in China, France, Germany, India, Switzerland, Taiwan, the United Kingdom and the United States. The Company regularly posts information on its website: www.hardinge.com.

ELMIRA, N.Y.--(BUSINESS WIRE)--Hardinge Inc. (NASDAQ:HDNG), a leading international provider of advanced metal-cutting solutions and accessories, reported financial results for its second quarter ended June 30, 2017. Chuck Dougherty, President and Chief Executive Officer, commented, “We had a strong quarter driven by improved industrial economies in North America and Asia that resulted in higher machine sales. Importantly, we had a very healthy level of orders that support our expectation of a solid 2017.” He added, “I joined the Company in May and have found an organization with a strong foundation from which we can build. We have global capabilities in operations, engineering and sales, great brands and outstanding people. Of note, we have an exceptional position in China, both in capabilities and market presence. There are opportunities to better leverage our scale in areas such as our supply chain and go-to-market strategy. And, I believe there is more potential to improve efficiencies through common systems and processes across our businesses. Our current focal areas are in completing the announced restructuring activities and developing a plan for optimizing our global footprint to create greater earnings power, as we develop a strategy to define our longer term priorities.” For the announced restructuring activities, the program is expected to be completed by mid-2018 and generate pre-tax annualized savings of $2.0 million to $2.5 million. Total restructuring costs are expected to be in the range of $3.8 million to $4.3 million, of which $1.6 million is non-cash. (1)Management believes that the use of non-GAAP measures helps in the understanding of the Company's operating performance. See page 9 of this release for the reconciliation tables between reported amounts and non-GAAP measures discussed in this document. Sales, Orders and Backlog for Second Quarter and First Half of 2017 North America: Sales of $24.2 million in the quarter grew by 17% due to improved industrial market conditions from the impact of the recovery in the oil and gas industry on other industrial businesses. Orders for the region were up 6% in the quarter driven by $1.9 million in orders by a key distributor. For the first six months of 2017, sales to North America were up 15% to $43.8 million and orders increased 3% to $50.7 million. Europe: Sales in Europe of $22.2 million were unchanged mostly as the result of the timing of machine orders. Orders in the region were up 12% driven by an improving industrial economy in Europe. Excluding unfavorable foreign currency translation of $0.6 million and $0.9 million on sales and orders, respectively, sales increased 3% and orders increased 15%. For the first six months of 2017, sales to Europe of $39.9 million were down 13% while orders increased 17% to $51.3 million. Excluding unfavorable foreign currency translation, sales decreased 11% and orders increased 20%. Asia: Sales of $31.7 million and orders of $35.7 million for the quarter were up 16% and 25%, respectively, as the economy in Asia has stabilized driving more investment in automation and machine tools by industrial manufacturers. Excluding unfavorable foreign currency impact of $0.9 million on both sales and orders, sales were up 20% and orders increased 28%. For the first half of 2017, sales of $59.0 million and orders of $63.7 million were up 10% and 21%, respectively. Excluding unfavorable foreign currency translation of $1.9 million on sales and $1.8 million on orders, sales were up 13% and orders increased 25%. Consolidated backlog: Backlog at June 30, 2017 was $144.9 million, up 14% over the trailing first quarter and improved 32% compared with June 30, 2016. Second Quarter Operating Review Gross profit increased $3.1 million, or 13%, on higher volume. As a percent of sales, gross profit was 34.1% in the quarter. Higher selling, general and administrative (SG&A) expenses included $1.1 million in unusual costs associated with the executive search and severance expenses. Excluding those costs, and the $0.4 million of professional fees related to the strategic review in the prior-year period, SG&A declined $0.4 million in the quarter. Operating income increased $1.9 million as a result of strong operating leverage. Operating margin expanded 2.4 points to 2.8% of sales. Adjusted Non-GAAP operating income(1) was $3.9 million in the quarter, up significantly from $0.9 million in the prior-year period. The adjusted operating margin was 5.0%, a 3.7 point expansion. Net income was $2.5 million, or $0.20 per diluted share, up from $0.1 million, or $0.01 per diluted share in the prior-year period. Adjusted Non-GAAP income(1) was $4.2 million, or $0.33 per diluted share, a more than four-fold increase over last year’s second quarter. First Half 2017 Review For the first half, gross profit was $48.0 million, improved $1.7 million on higher sales. Gross margin was relatively unchanged from the prior period. SG&A was down $2.1 million, or 5%, primarily as a result of reduced commissions and sales and marketing spend. Adjusted Non-GAAP operating income(1) for the first half of 2017 was $3.7 million, up from $0.6 million in the first half of 2016. The adjusted operating margin was 2.6%, a 2.2 point expansion from leverage on higher volume. Net income was $0.5 million, or $0.04 per diluted share, improved from a $1.1 million loss, or $(0.09) per diluted share, in the first half of 2016. Adjusted Non-GAAP income(1) was $3.7 million, or $0.29 per diluted share, up significantly from $0.4 million, or $0.03 per diluted share last year. Suspension of Dividend Hardinge’s Board of Directors has elected to suspend the quarterly cash dividend to shareholders in consideration of its development of a long-term strategy for growth, the re-evaluation of its capital allocation priorities and the nominal value of the current dividend of $0.08 per share, or $1.0 million per year. Webcast and Conference Call Hardinge will host a conference call and webcast today at 11:00 a.m. ET. During the conference call and webcast, Charles P. Dougherty, President and CEO, and Douglas J. Malone, Senior Vice President and CFO, will review the financial and operating results for the quarter, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion. Their review will be accompanied by a slide presentation which will be available on Hardinge’s website at http://ir.hardinge.com/events.cfm. The conference call can be accessed by calling (201) 689- 8560. The listen-only audio webcast can be monitored at http://ir.hardinge.com/events.cfm. A telephonic replay will be available from 2:00 p.m. ET the day of the call through Thursday, August 10, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13665317. Alternatively, the archive can be heard on the Company’s website at http://ir.hardinge.com/events.cfm. A transcript will also be posted to the website, once available. About Hardinge Hardinge is a leading global designer and manufacturer of high precision, computer-controlled machine tool solutions developed for critical, hard-to-machine metal parts and of technologically advanced workholding accessories. The Company’s strategy is to leverage its global brand strength to further penetrate global market opportunities where customers will benefit from the technologically advanced, high quality, reliable products Hardinge produces. With approximately two-thirds of its sales outside of North America, Hardinge serves the worldwide metal working market. Hardinge’s machine tool and accessory solutions can also be found in a broad base of industries to include aerospace, agricultural, automotive, construction, consumer products, defense, energy, medical, technology and transportation. Hardinge applies its engineering design and manufacturing expertise in high performance machining centers, high-end cylindrical and jig grinding machines, SUPER-PRECISION® and precision CNC lathes and technologically advanced workholding accessories. Hardinge has manufacturing operations in China, France, Germany, India, Switzerland, Taiwan, the United Kingdom and the United States. The Company regularly posts information on its website: http://www.hardinge.com. Safe Harbor Statement This news release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Such statements are based on management's current expectations that involve risks and uncertainties. Any statements that are not statements of historical fact or that are about future events may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. The Company's actual results or outcomes and the timing of certain events may differ significantly from those discussed in any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. HARDINGE INC. AND SUBSIDIARIESConsolidated Statements of Operations(in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, HARDINGE INC. AND SUBSIDIARIESConsolidated Balance Sheets(in thousands, except share and per share data) June 30, 2017 December 31, 2016 HARDINGE INC. AND SUBSIDIARIESConsolidated Statements of Cash Flows(in thousands) Six Months Ended June 30, Quarterly Sales by Region($ in thousands) Year-over-Year% Change Sequential% Change Year-to-Date Sales by Region($ in thousands) Year-over-Year% Change Quarterly Orders by Region($ in thousands) Year-over-Year% Change Sequential% Change Year-to-Date Orders by Region($ in thousands) Year-over-Year% Change Hardinge believes that providing non-GAAP financial measures such as adjusted loss from operations, adjusted net income, and adjusted earnings per diluted share is important for investors and other readers of Hardinge's financial statements, as they are used as an analytical indicator by Hardinge management to better understand its operating performance. HARDINGE INC. AND SUBSIDIARIESReconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income from Operations(in thousands) Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 HARDINGE INC. AND SUBSIDIARIESReconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income(in thousands, except per share data) Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 (1) items have no tax effect due to full tax valuation allowances in the related jurisdictions.

ELMIRA, N.Y.--(BUSINESS WIRE)--Hardinge Inc. (NASDAQ: HDNG), a leading international provider of advanced metal-cutting solutions and accessories, will announce its second quarter 2017 financial results before the opening of financial markets on Thursday, August 3, 2017. Chuck Dougherty, President and Chief Executive Officer, and Doug Malone, Chief Financial Officer, will host a conference call and simultaneous webcast to review the financial and operating results for the quarter, as well as the Company’s outlook. A question and answer session will follow. Hardinge Second Quarter 2017 Financial Results Conference Call Internet webcast link and supplemental slide presentation: ir.hardinge.com/events.cfm An audio replay will be available from 2:00 p.m. ET on the day of the call through Thursday, August 10, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13665317. The webcast replay will be available via the Company’s website at ir.hardinge.com/events.cfm. A transcript will also be posted once available. About Hardinge Hardinge is a leading global designer and manufacturer of high precision, computer-controlled machine tool solutions developed for critical, hard-to-machine metal parts and of technologically advanced workholding accessories. The Company’s strategy is to leverage its global brand strength to further penetrate global market opportunities where customers will benefit from the technologically advanced, high quality, reliable products Hardinge produces. With approximately two-thirds of its sales outside of North America, Hardinge serves the worldwide metal working market. Hardinge’s machine tool and accessory solutions can also be found in a broad base of industries to include aerospace, agricultural, automotive, construction, consumer products, defense, energy, medical, technology and transportation. Hardinge applies its engineering design and manufacturing expertise in high performance machining centers, high-end cylindrical and jig grinding machines, SUPER-PRECISION® and precision CNC lathes and technologically advanced workholding accessories. Hardinge has manufacturing operations in China, France, Germany, India, Switzerland, Taiwan, the United Kingdom and the United States. The Company regularly posts information on its website: www.hardinge.com.

ELMIRA, N.Y.--(BUSINESS WIRE)--Hardinge Inc. (NASDAQ:HDNG), a leading international provider of advanced metal-cutting solutions and accessories, reported financial results for its first quarter ended March 31, 2017. Orders for the first quarter increased 12% to $72.9 million compared with the prior-year period on strength in Europe, up 24%, and Asia, up 17%. North America was down a moderate 1%. As expected, sales for the quarter were soft at $64.6 million, down 5% from the prior year’s first quarter. Excluding the $1.5 million impact of foreign currency exchange, sales were down 3%. A new restructuring program was initiated to generate $2.0 million to $2.5 million annualized pre-tax savings; incurred $1.4 million in restructuring charges in quarter. Net loss was $2.0 million, or a $0.16 loss per diluted share; Non-GAAP(1) adjusted net loss was $0.6 million, or a $0.05 loss per diluted share. Richard L. Simons, President and Chief Executive Officer, commented, “While sales in the quarter were light, they came in as planned given customers’ delivery schedules. Nonetheless, we believe the quarter was a good start to the year with very solid orders. Global demand, for grinding especially, has been picking up nicely. This supports our confidence for sales in 2017 to be moderately better than last year and, when combined with the effect of our restructuring efforts completed in 2016, for profitability to be stronger.” He added, “Our strategy is centered on growing market share and driving down costs. We have initiated a new restructuring program to rationalize product lines and further streamline our operations through the consolidation of facilities and sale of assets. The effort will also deliver operational efficiencies and reduce manpower requirements. I am confident that these actions will better position Hardinge within the competitive machine tool industry for us to grow profitably and create long-term value for our shareholders. There is momentum building in the machine tool industry and we are well situated to capture that opportunity.” The restructuring program is expected to generate an estimated $2.0 million to $2.5 million in pre-tax annualized savings, and is anticipated to be substantially complete by mid-2018. Restructuring costs are expected to be in the range of approximately $3.8 million to $4.3 million, of which approximately $1.6 million is non-cash. (1)Management believes that the use of non-GAAP measures helps in the understanding of the Company's operating performance. See page 8 of this release for the reconciliation tables between reported amounts and non-GAAP measures discussed in this document. Sales, Orders and Backlog for the Quarter (Please refer to the Sales and Orders tables included in this release) North America: Market conditions in the U.S. are improved over the prior year. North America sales were up 12% in the quarter and orders, while down 1% due to a slow start in January and February, were much stronger in March. Europe: Sales were down 26% due to customer delivery timing and the lingering effects of political uncertainty. Orders increased an encouraging 24% in the period led by strong demand for grinding machines and despite unfavorable foreign currency effect. Asia: The Company believes its strong market position in high-precision products and ability to provide custom solutions, combined with China's improving market conditions, makes Asia a key region for growth. Sales for the quarter rose 3% to $27.3 million, while orders increased 17% to $28.0 million. Excluding the negative impact from foreign currency translation, sales were up 7% and orders were up 20%. Consolidated Backlog: Order backlog at March 31, 2017 increased 9% over the trailing fourth quarter of 2016 on strong order volume to $127.2 million and was up 26% over backlog at March 31, 2016. First Quarter Operating Results (comparisons are to the prior-year period except where noted) Gross profit for the quarter was $21.4 million, down from $22.7 million in the prior-year period on lower sales. As a percent of sales, gross profit was 33%. Selling, general and administrative (“SG&A”) expense declined $2.6 million, or 12%, driven by $1.7 million lower agent commissions and $0.7 million lower non-recurring professional fees. In March 2017, management initiated a strategic restructuring program that is expected to be substantially completed in mid-2018. Restructuring expenses in the 2017 first quarter were $1.4 million compared with $0.2 million in the prior year quarter. Net loss from operations was $1.8 million. On a non-GAAP(1) adjusted basis, net loss from operations was $0.3 million which is relatively unchanged from the prior-year period. China International Machine Tool Show Demonstrating its leadership in highly reliable, precision machine tools, Hardinge had 12 machines on display, half of which were new to the market, at the China International Machine tool Show in Beijing, April 17 through April 22. This included two automated cells with robotic loading and unloading systems. One cell displayed our ability to provide customers with a custom solution which is Industrial Internet of Things (Industry 4.0) ready for the next revolution in manufacturing technology. The show is the largest of its kind in China attracting visitors interested in understanding the changing dynamics of automation and machine tool technology. Webcast and Conference Call Hardinge will host a conference call and webcast today at 11:00 a.m. ET. During the conference call and webcast, Richard L. Simons, President and CEO, and Douglas J. Malone, Vice President and CFO, will review the financial and operating results for the quarter, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion. Supplemental slides will be made available on Hardinge’s website at http://ir.hardinge.com/events.cfm. The conference call can be accessed by calling (201) 689-8560. The listen-only audio webcast can be monitored at http://ir.hardinge.com/events.cfm. A telephonic replay will be available from 2:00 p.m. ET today through Friday May 12, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13659725. Alternatively, the archive can be heard on the Company’s website at http://ir.hardinge.com/events.cfm. A transcript will also be posted to the website, once available. About Hardinge Hardinge is a leading global designer and manufacturer of high precision, computer-controlled machine tool solutions developed for critical, hard-to-machine metal parts and of technologically advanced workholding accessories. The Company’s strategy is to leverage its global brand strength to further penetrate global market opportunities where customers will benefit from the technologically advanced, high quality, reliable products Hardinge produces. With approximately two-thirds of its sales outside of North America, Hardinge serves the worldwide metal working market. Hardinge’s machine tool and accessory solutions can also be found in a broad base of industries to include aerospace, agricultural, automotive, construction, consumer products, defense, energy, medical, technology and transportation. Hardinge applies its engineering design and manufacturing expertise in high performance machining centers, high-end cylindrical and jig grinding machines, SUPER-PRECISION® and precision CNC lathes and technologically advanced workholding accessories. Hardinge has manufacturing operations in China, France, Germany, India, Switzerland, Taiwan, the United Kingdom and the United States. The Company regularly posts information on its website: http://www.hardinge.com. Safe Harbor StatementThis news release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Such statements are based on management's current expectations that involve risks and uncertainties. Any statements that are not statements of historical fact or that are about future events may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. The Company's actual results or outcomes and the timing of certain events may differ significantly from those discussed in any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. (in thousands) (in thousands) Orders from Customers in Hardinge believes that providing non-GAAP financial measures such as adjusted gross profit, adjusted loss from operations, adjusted net income, and adjusted earnings per diluted share is important for investors and other readers of Hardinge's financial statements, as they are used as an analytical indicator by Hardinge management to better understand its operating performance. (in thousands) (in thousands, except per share data)

ELMIRA, N.Y.--(BUSINESS WIRE)--Hardinge Inc. (NASDAQ:HDNG), a leading international provider of advanced metal-cutting solutions and accessories, announced today that it will release its first quarter 2017 financial results before the opening of financial markets on Friday, May 5, 2017. The Company will host a conference call and webcast to review the financial and operating results for the quarter, as well as the Company’s outlook. A question and answer session will follow. First Quarter 2017 Financial Results Conference Call Internet webcast link and supplemental slide presentation: ir.hardinge.com/events.cfm A telephonic replay will be available from 2:00 p.m. ET on the day of the call through Friday, May 12, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13659725, or access the webcast replay via the Company’s website at ir.hardinge.com/events.cfm, where a transcript will be posted once available. About Hardinge Hardinge is a leading global designer and manufacturer of high precision, computer-controlled machine tool solutions developed for critical, hard-to-machine metal parts and of technologically advanced workholding accessories. The Company’s strategy is to leverage its global brand strength to further penetrate global market opportunities where customers will benefit from the technologically advanced, high quality, reliable products Hardinge produces. With approximately two-thirds of its sales outside of North America, Hardinge serves the worldwide metal working market. Hardinge’s machine tool and accessory solutions can also be found in a broad base of industries to include aerospace, agricultural, automotive, construction, consumer products, defense, energy, medical, technology and transportation. Hardinge applies its engineering design and manufacturing expertise in high performance machining centers, high-end cylindrical and jig grinding machines, SUPER-PRECISION® and precision CNC lathes and technologically advanced workholding accessories. Hardinge has manufacturing operations in China, France, Germany, India, Switzerland, Taiwan, the United Kingdom and the United States. The Company regularly posts information on its website: www.hardinge.com.