8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 12, 2015

Hardinge Inc.

(Exact name of registrant as specified in its charter)

New York	000-15760	16-0470200
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)
One Hardinge Drive Elmira, NY		14902
(Address of principal executive offices)		(Zip Code)

(607) 734-2281

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On February 12, 2015, Hardinge Inc. (the “Company”) issued a press release announcing the Company’s fourth quarter 2014 financial results. Copies of the press release and the presentation slides used in connection with the Company’s earnings conference call and webcast on February 12, 2015 are respectively included as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K. On February 10, 2015, the Board of Directors of the Company declared a cash dividend of $0.02 per share on the Company’s common stock. The dividend is payable on March 9, 2015 to stockholders of record as of February 27, 2015.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits.

EXHIBIT NUMBER	DESCRIPTION
99.1	Press release issued by Registrant on February 12, 2015 announcing fourth quarter 2014 results.
99.2	Presentation slides used by Registrant in connection with its February 12, 2015 earnings conference call and webcast.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Hardinge Inc.
		(Registrant)
Date	February 12, 2015
		/s/ Douglas J. Malone
		Douglas J. Malone Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

NEWS RELEASE

Hardinge Inc. One Hardinge Drive, Elmira, N.Y. 14902

For more information contact:
Company:	Investor Relations:
Douglas J. Malone Chief Financial Officer Phone: (607) 378-4140	Deborah K. Pawlowski, Kei Advisors LLC Phone: (716) 843-3908 Email: dpawlowski@keiadvisors.com

Hardinge Reports Fourth Quarter2014 Results

ELMIRA, N.Y., February 12, 2015-Hardinge Inc. (NASDAQ: HDNG), a leading international provider of advanced metal-cutting solutions and accessories, reported financial results for its fourth quarter and year ended December 31, 2014.

Net sales (“sales”) for the quarter were $93.0 million, and net income was $4.5 million, or $0.35 per diluted share. Orders for the quarter increased 28% to $94.4 million, compared with $73.9 million in the prior-year period.

Richard L. Simons, Chairman, President and Chief Executive Officer, commented, “We finished the year on a strong note, demonstrating our team’s ability to execute, as fourth quarter sales slightly exceeded our guidance range. Compared with the trailing third quarter, we realized significant sales growth in all geographic regions. Europe and Asia each grew over 40% and the U.S. was up nearly 20%. Our orders for the quarter and the year were significantly higher than what we had experienced in the last few years. In fact, fourth quarter orders were at the highest level we have achieved since the second quarter of 2011."

Quarterly Sales by Region ($ in thousands)
	Quarter Ended
	December 31, 2014		December 31, 2013		September 30, 2014
Sales to Customers in	$	% of Total	$	Year-over-Year % Change	$	Sequential % Change
North America	28,636	31%	36,473	(21)%	24,026	19%
Europe	31,102	33%	28,867	8%	21,286	46%
Asia	33,270	36%	37,761	(12)%	23,612	41%
Total	93,008		103,101	(10)%	68,924	35%

____________________

Note: Fluctuations in Hardinge’s consolidated sales among geographic locations and industries can vary from quarter to quarter based on the timing and magnitude of orders and projects. Hardinge does not believe that such quarter-to-quarter fluctuations are necessarily indicative of larger business trends. Rather, the Company believes that such business trends can be discerned from the Company’s performance during a longer period of time, such as a trailing twelve-month period.

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Hardinge Reports Fourth Quarter 2014 Results

February 12, 2015

Page 2 of 9

Fourth Quarter Review

Compared with the prior year, sales to Europe improved as a result of increased demand for highly-engineered machines with custom specifications. Sales to the North American and Asian markets declined primarily as a result of the prior-year period benefiting from unusually strong shipments out of Usach’s purchased backlog of $11.3 million and $9.7 million, respectively, in the fourth quarter of 2013.

Gross profit of $27.0 million declined $2.4 million compared with the prior-year period. As a percentage of sales, gross margin was 29.1%, fairly consistent with the fourth quarter of 2013 after adjusting for an inventory step-up charge of $0.8 million in the 2013 period.

Selling, general and administrative (“SG&A”) expenses of $21.7 million were relatively unchanged from the prior-year period. As a percentage of sales, SG&A was 23.3%, compared with 21.1% in the prior-year period, which had the benefit of higher sales volume.

Income from operations was $5.1 million, compared with $1.3 million in the prior-year period. Income from operations in the fourth quarter of last year was negatively impacted by a $0.8 million inventory step-up charge, acquisition-related expenses of $0.3 million, and an impairment charge of $6.2 million. Fourth quarter 2013 income from operations benefited from the shipment of the Usach machines with a de minimis amount of associated variable SG&A.

Full Year Sales by Region ($ in thousands)
	Year Ended
	December 31, 2014		December 31, 2013
Sales to Customers in	$	% of Total	$	Year-over-Year % Change
North America	100,894	32%	109,457	(8)%
Europe	103,063	33%	100,126	3%
Asia	107,676	35%	119,876	(10)%
Total	311,633		329,459	(5)%

Full Year 2014 Review

Sales for 2014 were $311.6 million, down $17.8 million, mostly as the result of lower Usach product sales after the unusually high 2013 volume previously discussed.

Gross profit was $86.9 million, or 27.9% of sales, compared with $93.2 million, or 28.3% of sales in the prior year. Gross profit in 2014 was negatively impacted by reduced sales volume and lower machine production, which resulted in certain factories experiencing under absorption of fixed costs. Gross profit in 2013 was unfavorably impacted by a $1.9 million inventory step-up charge.

SG&A expense was $81.0 million, up by $1.5 million compared with the prior year, driven primarily by incremental SG&A expense gained with the acquisitions. The prior year SG&A included approximately $2.2 million of acquisition-related expenses. As a percentage of sales, SG&A was 26.0% in 2014 compared with 24.1% in 2013, which benefited from higher sales.

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Hardinge Reports Fourth Quarter 2014 Results

February 12, 2015

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2014 loss from operations was $0.4 million, compared with income from operations of $7.0 million in 2013. Non-GAAP⁽¹⁾ adjusted operating income, which excludes impairment charges and other atypical items, was $5.1 million in 2014, compared with non-GAAP⁽¹⁾ adjusted operating income of $17.3 million in 2013. The decline from the prior year was mostly the result of lower sales and under absorption of fixed costs due to lower production volumes in the Company's grinding operations.

Net loss for 2014 was $2.1 million, or $0.17 per diluted share, compared with net income of $9.9 million, or $0.83 per diluted share, in the prior year. Non-GAAP⁽¹⁾ adjusted net income, which excludes atypical items, was $2.8 million, or $0.22 per diluted share in 2014, compared with non-GAAP⁽¹⁾ adjusted net income of $14.9 million or $1.25 per diluted share in 2013.

Flexible Balance Sheet for Strategic Investments

Cash and cash equivalents at December 31, 2014 were $16.3 million. Total debt was $16.2 million, a reduction of $10.4 million from December 31, 2013.

Orders by Region

($ in thousands)

	Quarter Ended
	December 31, 2014		December 31, 2013		September 30, 2014
Orders from Customers in	$	% of Total	$	Year-over-Year % Change	$	Sequential % Change
North America	31,467	33%	24,598	28%	22,158	42%
Europe	31,302	33%	23,818	31%	26,282	19%
Asia	31,582	34%	25,498	24%	26,763	18%
Total	94,351		73,914	28%	75,203	25%

	Year Ended
	December 31, 2014		December 31, 2013
Orders from Customers in	$	% of Total	$	Year-over-Year % Change
North America	105,152	32%	86,216	22%
Europe	109,122	33%	95,348	14%
Asia	116,416	35%	106,912	9%
Total	330,690		288,476	15%

Net orders (“orders”) during the fourth quarter were $94.4 million, up 28% over the prior-year period. Full year 2014 orders of $330.7 million grew 15% over 2013, with improvements in all three geographic markets. Incremental orders from the full year contribution of Forkardt accounted for approximately $14 million of the increase. The Company’s order backlog at December 31, 2014 was $105.3 million, compared with $91.4 million at December 31, 2013.

2015 Expectations

Mr. Simons commented, “Given the strength of orders at year end, our firm backlog and very active quote pipeline, we expect that 2015 will demonstrate solid growth. Economists are indicating further order growth for the industry as well. We believe our China and U.S. markets will drive sales as the aerospace and automotive industries continue to expand. Our first quarter is affected by the Chinese New Year and, based on scheduled backlog, we expect our first quarter sales to be similar to last year’s first quarter of about $70 million. We believe our 2015 growth will be demonstrated in the quarters thereafter."

____________________

⁽¹⁾Management believes that the use of non-GAAP measures helps in the understanding of its operating performance. See pages 8 and 9 of this release for the reconciliation tables between reported amounts and non-GAAP measures discussed in this document.

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Hardinge Reports Fourth Quarter 2014 Results

February 12, 2015

Page 4 of 9

He concluded, “We are intent upon growing the business both organically and through acquisitions, and to improve productivity to drive stronger profitability.”

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, Chairman, President and CEO, and Douglas J. Malone, Vice President and CFO, will review the financial and operating results for the quarter and year to date, 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 (315) 625-6888. 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, February 19, 2015. To listen to the archived call, dial (404) 537-3406 and enter conference ID number 54427769. 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 alsobe 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 inhigh 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.

FINANCIAL TABLES FOLLOW.

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Hardinge Reports Fourth Quarter 2014 Results

February 12, 2015

Page 5 of 9

HARDINGE INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended December 31,						Year Ended December 31,
	2014			2013			2014			2013
	(unaudited)
Sales	$	93,008		$	103,101		$	311,633		$	329,459
Cost of sales	65,988			73,643			224,755			236,220
Gross profit	27,020			29,458			86,878			93,239
Gross profit margin	29.1		%	28.6		%	27.9		%	28.3		%
Selling, general and administrative expenses	21,669			21,753			81,045			79,533
Impairment charges	—			6,239			5,766			6,239
Other expense, net	265			155			514			471
Income (loss) from operations	5,086			1,311			(447		)	6,996
Operating margin	5.5		%	1.3		%	(0.1		)%	2.1		%
Interest expense	168			287			737			1,128
Interest income	(12		)	(21		)	(59		)	(64		)
Income (loss) from continuing operations before income taxes	4,930			1,045			(1,125		)	5,932
Income taxes	388			(81		)	1,233			1,537
Net income (loss) from continuing operations	4,542			1,126			(2,358		)	4,395
Gain from disposal of discontinued operation, net of    tax	—			4,890			218			4,890
Income from discontinued operations, net of tax	—			127			—			642
Net income (loss)	$	4,542		$	6,143		$	(2,140	)	$	9,927
Per share data:
Basic earnings (loss) per share:
Continuing operations	$	0.36		$	0.09		$	(0.19	)	$	0.37
Disposal of discontinued operation	—			0.40			0.02			0.41
Discontinued operations	—			0.01			—			0.06
Basic earnings (loss) per share	$	0.36		$	0.50		$	(0.17	)	$	0.84
Diluted earnings (loss) per share:
Continuing operations	$	0.35		$	0.09		$	(0.19	)	$	0.37
Disposal of discontinued operation	—			0.40			0.02			0.41
Discontinued operations	—			0.01			—			0.05
Diluted earnings (loss) per share	$	0.35		$	0.50		$	(0.17	)	$	0.83
Cash dividends declared per share:	$	0.02		$	0.02		$	0.08		$	0.08
Weighted avg. shares outstanding: Basic	12,716			12,160			12,661			11,801
Weighted avg. shares outstanding: Diluted	12,832			12,253			12,661			11,891

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Hardinge Reports Fourth Quarter 2014 Results

February 12, 2015

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HARDINGE INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except share and per share data)

	December 31, 2014			December 31, 2013
Assets
Cash and cash equivalents	$	16,293		$	34,722
Restricted cash	3,151			4,124
Accounts receivable, net	62,877			57,137
Inventories, net	111,821			114,064
Other current assets	10,545			11,563
Total current assets	204,687			221,610
Property, plant and equipment, net	65,874			74,656
Goodwill	6,698			10,002
Other intangible assets, net	30,217			32,063
Other non-current assets	3,844			5,852
Total non-current assets	106,633			122,573
Total assets	$	311,320		$	344,183
Liabilities and shareholders’ equity
Accounts payable	$	25,592		$	24,418
Accrued expenses	25,071			26,346
Customer deposits	12,736			15,166
Accrued income taxes	646			830
Deferred income taxes	2,332			2,569
Contingent consideration	—			7,500
Current portion of long-term debt	3,972			7,850
Total current liabilities	70,349			84,679
Long-term debt	12,253			18,785
Pension and postretirement liabilities	53,119			28,188
Deferred income taxes	2,516			4,968
Other liabilities	3,487			3,775
Total non-current liabilities	71,375			55,716
Commitments and contingencies
Common stock ($0.01 par value, 20,000,000 authorized; 12,825,468 issued and 12,821,768 outstanding as of December 31, 2014, and 12,472,992 issued and 12,397,867 outstanding as of December 31, 2013)	128			125
Additional paid-in capital	120,538			114,951
Retained earnings	87,777			90,937
Treasury shares (at cost, 3,700 as of December 31, 2014, and 75,125 as of December 31, 2013)	(46		)	(806		)
Accumulated other comprehensive loss	(38,801		)	(1,419		)
Total shareholders’ equity	169,596			203,788
Total liabilities and shareholders’ equity	$	311,320		$	344,183

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Hardinge Reports Fourth Quarter 2014 Results

February 12, 2015

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HARDINGE INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

	Year Ended
	December 31, 2014			December 31, 2013
Operating activities
Net (loss) income	$	(2,140	)	$	9,927
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Impairment charges	5,766			6,239
Depreciation and amortization	9,847			9,560
Debt issuance costs amortization	42			83
Benefit from deferred income taxes	(245		)	(1,140		)
Gain on sale of assets	(82		)	(62		)
Gain on sale of business	(218		)	(4,890		)
Gain on purchase of business	(462		)	—
Unrealized intercompany foreign currency transaction loss (gain)	350			(2,397		)
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable	(7,860		)	(68		)
Inventories	(1,303		)	20,259
Other assets	1,655			1,663
Accounts payable	2,211			(4,083		)
Customer deposits	(1,783		)	(899		)
Accrued expenses	(2,590		)	(8,373		)
Accrued pension and postretirement liabilities	(9		)	9
Net cash provided by operating activities	3,179			25,828
Investing activities
Acquisition of businesses, net of cash acquired	(5,683		)	(34,250		)
Capital expenditures	(3,186		)	(3,871		)
Proceeds from disposal of business	218			6,255
Proceeds on sales of assets	151			179
Net cash used in investing activities	(8,500		)	(31,687		)
Financing activities
Payment of contingent consideration	(7,500		)	(299		)
Proceeds from short-term notes payable to bank	21,143			47,733
Repayments of short-term notes payable to bank	(21,143		)	(59,025		)
Proceeds from long-term debt	—			33,821
Repayments of long-term debt	(9,296		)	(15,743		)
Debt issuance costs	—			(687		)
Dividends paid	(1,012		)	(944		)
Net proceeds from sales of common stock	5,678			8,884
Other financing activities	—			—
Net cash (used in) provided by financing activities	(12,130		)	13,740
Effect of exchange rate changes on cash	(978		)	(14		)
Net (decrease) increase in cash	(18,429		)	7,867
Cash and cash equivalents at beginning of period	34,722			26,855
Cash and cash equivalents at end of period	$	16,293		$	34,722

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Hardinge Reports Fourth Quarter 2014 Results

February 12, 2015

Page 8 of 9

Hardinge believes that providing non-GAAP financial measures such as adjusted operating income, 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 SUBSIDIARIES

Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Operating Income

(in thousands)

	Three Months Ended   December 31, 2014					Three Months Ended   December 31, 2013
	Amount			% of Sales		Amount		% of Sales
Income from operations, as reported	$	5,086		5.5	%	$	1,311	1.3	%
Adjustments to reported income from operations:
Impairment charges	—			—		6,239		6.0
Acquisition-related inventory step-up charge	—			—		785		0.8
Acquisition-related expenses	121			0.1		258		0.2
Non-GAAP income from operations, as adjusted	$	5,207		5.6	%	$	8,593	8.3	%
	Year Ended   December 31, 2014					Year Ended   December 31, 2013
	Amount			% of Sales		Amount		% of Sales
Income (loss) from operations, as reported	$	(447	)	(0.1	)%	$	6,996	2.1	%
Adjustments to reported income (loss) from operations:
Impairment charges	5,766			1.9		6,239		1.9
Gain on purchase of business	(462		)	(0.1	)	—		—
Acquisition-related inventory step-up charge	86			—		1,927		0.6
Acquisition-related expenses	121			—		2,154		0.7
Non-GAAP income from operations, as adjusted	$	5,064		1.7	%	$	17,316	5.3	%

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Hardinge Reports Fourth Quarter 2014 Results

February 12, 2015

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HARDINGE INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income

(in thousands, except per share data)

	Three Months Ended   December 31, 2014						Three Months Ended   December 31, 2013
	Amount			EPS			Amount			EPS
Net income, as reported	$	4,542		$	0.35		$	6,143		$	0.50
Adjustments to reported net income, net of taxes:
Impairment charges	—			—			6,239			0.51
Gain from disposal of discontinued operation and income from discontinued operations, net of tax	—			—			(5,017		)	(0.41		)
Acquisition-related inventory step-up charge	—			—			785			0.06
Acquisition-related expenses	121			0.01			258			0.02
Non-GAAP net income, as adjusted	$	4,663		$	0.36		$	8,408		$	0.68
	Year Ended   December 31, 2014						Year Ended   December 31, 2013
	Amount			EPS			Amount			EPS
Net (loss) income, as reported	$	(2,140	)	$	(0.17	)	$	9,927		$	0.83
Adjustments to reported net (loss) income, net of taxes:
Impairment charges	5,437			0.43			6,239			0.52
Gain on purchase of business	(462		)	(0.04		)	—			—
Gain from disposal of discontinued operation and income from discontinued operations, net of tax	(218		)	(0.02		)	(5,532		)	(0.46		)
Acquisition-related inventory step-up charge	86			0.01			1,915			0.16
Acquisition-related expenses	121			0.01			2,154			0.18
Other adjustments	—			—			186			0.02
Non-GAAP net income, as adjusted	$	2,824		$	0.22		$	14,889		$	1.25

-END-

EX-99.2

Fourth Quarter 2014 Financial Results Conference Call February 12, 2015 NASDAQ: HDNG www.hardinge.com Douglas J. Malone Vice President and Chief Financial Officer Richard L. Simons Chairman, President and Chief Executive Officer

© Hardinge 2015 www.hardinge.com 2 Safe Harbor Statement This presentation may contain 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). Any such statements are based upon 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 following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: fluctuations in the machine tool business cycles, 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 the Company’s entry into new product and geographic markets, the Company’s ability to manage its operating costs, actions taken by customers such as order cancellations or reduced bookings by customers or distributors, competitor’s actions such as price discounting or new product introductions, governmental regulations and environmental matters, changes in the availability of cost of materials and supplies, the implementation of new technologies and currency fluctuations. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

© Hardinge 2015 www.hardinge.com 3 Sales ($ in millions) $58 $90 $84 $109 $101 $74 $105 $121 $100 $103 $125 $147 $129 $120 $108 2010 2011 2012 2013 2014 North America Europe Asia $329 $257 $342 $334 $36 $23 $25 $24 $29 $29 $25 $26 $21 $31 $38 $23 $28 $24 $33 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 North America Europe Asia $71 $79 $103 Quarterly Net Sales Annual Net Sales Q4 2014 included solid sales growth to each geographic region compared with recent quarters; Q4 2013 included strong shipments of acquired Usach backlog Actual net sales may differ due to rounding. $69 $93 $312

© Hardinge 2015 www.hardinge.com 4 23.9% 26.7% 29.0% 28.9% 27.9% 2010 2011 2012 2013* 2014* $103 $71 $79 $69 $93 29.3% 27.1% 28.0% 27.1% 29.1% Q4 2013* Q1 2014 Q2 2014* Q3 2014 Q4 2014 $257 $342 $334 $329 $312 Gross Margin Quarterly Sales & Adjusted Gross Margin* Annual Sales & Adjusted Gross Margin* Q4 2014 gross margin reflected improved mix and leveraging fixed manufacturing costs on higher sales levels Sales ($ in millions) * Gross Margin for Q4 2013, Q2 2014, 2013 and 2014 were adjusted to exclude unusual items. Adjusted Gross Margin is a non-GAAP measure. See supplemental slides for Adjusted Gross Margin reconciliation and other important disclaimers regarding Adjusted Gross Margin. Amounts shown pertain to continuing operations. Actual net sales may differ due to rounding.

© Hardinge 2015 www.hardinge.com 5 $257 $342 $334 $329 $312 (0.4)% 4.9% 6.1% 5.3% 1.7% 2010* 2011 2012* 2013* 2014* $103 $71 $79 $69 $93 8.3% (0.4)% 2.2% (2.3)% 5.6% Q4 2013* Q1 2014* Q2 2014* Q3 2014* Q4 2014* Operating Margin Quarterly Sales & Adjusted Operating Margin* Annual Sales & Adjusted Operating Margin* Sales ($ in millions) * Operating Margin for all periods shown except for 2011 were adjusted to exclude unusual items. Adjusted Operating Margin is a non-GAAP measure. See supplemental slides for Adjusted Operating Margin reconciliation and other important disclaimers regarding Adjusted Operating Margin. Actual net sales may differ due to rounding. Q4 2014 benefited from improved gross margin and SG&A leverage on higher sales; earlier 2014 quarters were impacted by lower factory utilization All amounts shown pertain to continuing operations.

© Hardinge 2015 www.hardinge.com 6 $257 $342 $334 $329 $312 2.4% 7.1% 8.3% 8.2% 4.8% 2010 2011 2012 2013 2014 $103 $71 $79 $69 $93 11.1% 3.1% 5.4% 1.1% 8.3% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 EBITDA Margin* Quarterly Sales & Adjusted EBITDA Margin* Annual Sales & Adjusted EBITDA Margin* Sales ($ in millions) * Adjusted EBITDA Margin is a non-GAAP financial measure. Hardinge believes that the use of Adjusted EBITDA Margin helps in the understanding of the Company’s financial results. See supplemental slides for an Adjusted EBITDA Margin reconciliation and other important disclaimers regarding Adjusted EBITDA Margin. Actual net sales may differ due to rounding. All amounts shown pertain to continuing operations. $11.4 $2.2 $4.2 $0.7 $7.7 $6.1 $27.9 $26.9 $24.3 $14.9

© Hardinge 2015 www.hardinge.com 7 $8.4 ($0.7) $1.4 ($2.7) $4.6 Q4 2013* Q1 2014* Q2 2014* Q3 2014* Q4 2014* Quarterly Adjusted Net Income (Loss)* ($3.4) $12.0 $15.4 $14.9 $2.8 2010* 2011 2012* 2013* 2014* Annual Adjusted Net (Loss) Income* Net Income (Loss) ($ in millions) * Net Income (Loss) for all periods shown except 2011 were adjusted to exclude unusual items. Adjusted Net Income is a non-GAAP measure. See supplemental slides for Adjusted Net Income (Loss) reconciliation and other important disclaimers regarding Adjusted Net Income (Loss). All amounts shown pertain to continuing operations.

© Hardinge 2015 www.hardinge.com 8 Geographic Diversity Creates Larger Addressable Market ($ in millions) Annual Orders $67 $95 $79 $86 $105 $91 $120 $106 $95 $109 $139 $157 $103 $107 $117 2010 2011 2012 2013 2014 North America Europe Asia $331 $288 $372 $297 $288 Quarterly Orders $24 $24 $27 $22 $32 $24 $29 $23 $26 $31 $26 $28 $30 $27 $32 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 North America Europe Asia $75 $95 $80 $81 $74 Orders improved in all markets Actual orders may differ due to rounding.

© Hardinge 2015 www.hardinge.com 9 ($ in millions) Backlog Lead times vary by product line  Grinding: six to nine months  Milling and turning: two to six months  Workholding parts and accessories: Standard - next day, Specials – four to eight weeks Backlog Feeds 2015 Sales Outlook $39 $43 $45 $48 $47 $42 $47 $46 $47 $48 $10 $11 $12 $12 $10 12/31/2013 3/31/2014 6/30/2014 9/30/2014 12/31/2014 Grinding Milling & Turning Workholding Parts & Accessories $107 $91 $101 $103 $105

© Hardinge 2015 www.hardinge.com 10 Source: Oxford Economics Fall 2014 Global Machine Tool Outlook Report Emerging Economies Drive Demand $0 $20 $40 $60 $80 $100 $120 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Americas Europe Asia World M ac h in e T o ol C o n s u m p ti o n (i n U S $ b ill io n s ) Drivers of Machine Tool Consumption:  Older machines – technologically obsolete  Skilled machinists – shrinking supply  Emerging economies – growing middle class  Global competitiveness – advancing productivity 2014-2018 Forecast CAGR  World ~6%  Asia ~7%  Europe ~4%  Americas ~4% Oxford Economics Machine Tool Forecast $80 billion industry

© Hardinge 2015 www.hardinge.com 11 2015 Expectations  Continued optimistic outlook for 2015  Economists project further growth in machine tool orders  Consider seasonality, with Q1 impacted by Chinese New Year and Q3 impacted by European summer vacation season  Q1 2015 sales expected to be in-line with Q1 2014; growth thereafter driven by scheduled backlog and quoting pipeline

© Hardinge 2015 www.hardinge.com 12 2020 VISION Hardinge’s 2020 Vision Revenue >$600 million EBITDA Margin: ~13% = ~$80 million  Capture market share with new products and improved distribution  Penetrate new industrial and geographic end markets  Participate in projected 6% compound annual growth rate of global machine tool demand  Acquire additional Aftermarket Tooling and Accessories businesses (~$60 to $80 million) Current Strength Enables Achievement of 2020 Vision

NASDAQ: HDNG www.hardinge.com Fourth Quarter 2014 Financial Results Conference Call February 12, 2015

NASDAQ: HDNG SUPPLEMENTAL INFORMATION www.hardinge.com

© Hardinge 2015 www.hardinge.com 15 60 58 57 59 61 2010 2011 2012 2013 2014 Emphasis on Productivity and Cash Inventory Turns (Monthly Avg) Receivable Days Outstanding (Monthly Avg) * Managed Working Capital is defined as: Receivables + Inventory - Payables - Customer Deposits  At 41%, we believe our managed working capital to be in upper quartile of industry  Machine tool industry requires higher inventory to support customers’ needs 47% 38% 41% 43% 41% 2010 2011 2012 2013 2014 1.8 2.1 1.8 1.9 1.9 2010 2011 2012 2013 2014 Managed Working Capital* as a Percent of Sales (Monthly Avg)

© Hardinge 2015 www.hardinge.com 16 $157.9 $147.0 $161.2 $203.8 $169.6 $5.0 $21.5 $20.0 $26.6 $16.2 2010 2011 2012 2013 2014 Equity Debt $30.9 $21.7 $26.9 $34.7 $16.3 2010 2011 2012 2013 2014 Financial Strength and Flexibility Total Capitalization ($ in millions) $19.2 $7.6 $3.9 $3.2 $6.0 2011* 2012* 2013 2014 2015E * Reflects expansion capital investments in China and Switzerland of $17.2 million in 2011 and $3.3 million in 2012 Cash & Cash Equivalents Capital Expenditures $162.9 $168.5 $181.2 $230.4 $185.8 Total Capitalization

© Hardinge 2015 www.hardinge.com 17 Adjusted Gross Profit & Margin Reconciliation ($ in millions) Gross Profit and Gross Margin for 2013, 2014, Q4 2013 and Q2 2014 were adjusted to exclude unusual items as listed above. Hardinge believes that when used in conjunction with GAAP measures, Adjusted Gross Profit, which is a non-GAAP measure, assists in the understanding of Hardinge’s operating performance. Actual amounts may differ due to rounding. Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 2013 2014 2014 2014 2014 Sales $ 257.0 $ 341.6 $ 334.4 $ 329.5 $ 311.6 $ 103.1 $ 70.9 $ 78.9 $ 68.9 $ 93.0 Cost of sales 195.7 250.5 237.6 236.2 224.8 73.7 51.7 56.9 50.2 66.0 Gross profit 61.3 91.1 96.8 93.3 86.8 29.4 19.2 22.0 18.7 27.0 Inventory step-up charge - - - 1.9 0.1 0.8 - 0.1 - - Adjusted gross profit $ 61.3 $ 91.1 $ 96.8 $ 95.2 $ 86.9 $ 30.2 $ 19.2 $ 22.1 $ 18.7 $ 27.0 Adjusted gross margin 23.9% 26.7% 29.0% 28.9% 27.9% 29.3% 27.1% 28.0% 27.1% 29.1%

© Hardinge 2015 www.hardinge.com 18 Annual Adjusted Net (Loss) Income, Operating (Loss) Income & Margin and EBITDA & Margin ($ in millions) Net (Loss) Income, Operating (Loss) Income, Operating Margin, EBITDA and EBITDA Margin in 2010, 2012, 2013 and 2014 were adjusted to exclude unusual items as listed above. Hardinge believes that when used in conjunction with GAAP measures, Adjusted Net (Loss) Income, Adjusted Operating (Loss) Income and Adjusted EBITDA, which are non-GAAP measures, assist in the understanding of Hardinge’s operating performance. Actual amounts may differ due to rounding. 2010 2011 2012 2013 2014 Net (loss) income $ (5.2) 12.0$ 17.9$ 9.9$ (2.1)$ Impairment charges - - - 6.2 5.4 Income from discontinued operations and gain on disposal of discontinued operation, net of tax - - - (5.5) (0.2) Gain on purchase of business (0.6) - - - (0.5) Inventory step-up charge - - - 1.9 0.1 Acquisition transaction expenses - - 0.2 2.2 0.1 Other adjustments 2.4 - (2.7) 0.2 - Adjusted net (loss) income (3.4) 12.0 15.4 14.9 2.8 Plus: Interest expense, net 0.3 0.2 0.7 1.0 0.7 Adjusted income tax expense 2.2 4.4 4.3 1.4 1.6 Adjusted operating (loss) income (0.9) 16.6 20.4 17.3 5.1 Depreciation and amortization expense 7.0 7.7 7.5 9.6 9.8 Adjusted EBITDA 6.1$ 24.3$ 27.9$ 26.9$ 14.9$ Sales $257.0 $341.6 $334.4 $329.5 $311.6 Adjusted operating margin (0.4)% 4.9 % 6.1 % 5.3 % 1.7 % Adjusted EBITDA margin 2.4 % 7.1 % 8.3 % 8.2 % 4.8 %

© Hardinge 2015 www.hardinge.com 19 Quarterly Adjusted Net Income (Loss), Operating Income (Loss) & Margin and EBITDA & Margin ($ in millions) Quarterly Net Income (Loss), Operating Income (Loss), Operating Margin, EBITDA and EBITDA Margin in Q4 2013, Q1 2014, Q2 2014, Q3 2014 and Q4 2014 were adjusted to exclude unusual items as listed above. Hardinge believes that when used in conjunction with GAAP measures, Adjusted Net Income (Loss), Adjusted Operating Income (Loss) and Adjusted EBITDA, which are non-GAAP measures, assist in the understanding of Hardinge’s operating performance. Actual amounts may differ due to rounding. Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Net income (loss) 6.1$ (0.5)$ 1.3$ (7.6)$ 4.5$ Impairment charges 6.2 - - 5.4 - Income from discontinued operations and gain on disposal of discontinued operation, net of tax (5.0) (0.2) - - - Gain on purchase of business - - - (0.5) - Inventory step-up charge 0.8 - 0.1 - - Acquisition transaction expenses 0.3 - - - 0.1 Other adjustments - - - - - Adjusted net income (loss) 8.4 (0.7) 1.4 (2.7) 4.6 Plus: Interest expense, net 0.3 0.2 0.1 0.2 0.2 Adjusted income tax (benefit) expense (0.1) 0.2 0.2 0.9 0.4 Adjusted operating income (loss) 8.6 (0.3) 1.7 (1.6) 5.2 Depreciation and amortization expense 2.8 2.5 2.5 2.3 2.5 Adjusted EBITDA 11.4$ 2.2$ 4.2$ 0.7$ 7.7$ Sales 103.1 70.9 78.9 68.9 93.0 Adjusted operating margin 8.3 % (0.4)% 2.2 % (2.3)% 5.6 % Adjusted EBITDA margin 11.1 % 3.1 % 5.4 % 1.1 % 8.3 %

© Hardinge 2015 www.hardinge.com 20 3/31/2013 6/30/2013 9/30/2013 12/31/2013 3/31/2014 6/30/2014 9/30/2014 12/31/2014 Sales 67.2$ 79.4$ 79.8$ 103.1$ 70.9$ 78.9$ 68.9$ 93.0$ Cost of sales 48.2 56.6 57.7 73.7 51.7 56.9 50.2 66.0 Gross profit 19.0 22.8 22.1 29.4 19.2 22.0 18.7 27.0 Gross profit margin 28.2% 28.7% 27.7% 28.6% 27.1% 27.9% 27.1% 29.1% Selling, general and administrative expenses 18.2 20.0 19.6 21.8 19.1 20.1 20.1 21.7 Impairment charges - - - 6.2 - - 5.8 - Other expense (income) 0.3 0.1 (0.1) 0.1 0.4 0.3 (0.3) 0.2 Income (loss) from operations 0.5 2.7 2.6 1.3 (0.3) 1.6 (6.9) 5.1 Operating margin 0.7 % 3.4 % 3.2 % 1.3 % (0.4)% 2.1 % (10.0)% 5.5 % Interest expense, net 0.2 0.3 0.3 0.3 0.2 0.1 0.2 0.2 Income (loss) from continuing operations before income taxes 0.3 2.4 2.3 1.0 (0.5) 1.5 (7.1) 4.9 Income tax expense (benefit) 0.3 0.3 1.1 (0.1) 0.2 0.2 0.5 0.4 Income (loss) from continuing operations 0.0$ 2.1$ 1.2$ 1.1$ (0.7)$ 1.3$ (7.6)$ 4.5$ Income from discontinued operations, net of tax - 0.2 0.3 0.1 - - - - Gain from disposal of discontinued operation, net of tax - - - 4.9 0.2 - - - Net income (loss) 0.0$ 2.3$ 1.5$ 6.1$ (0.5)$ 1.3$ (7.6)$ 4.5$ Basic earnings (loss) per share Continuing operations -$ 0.18$ 0.10$ 0.09$ (0.05)$ 0.11$ (0.60)$ 0.36$ Discontinued operations - 0.01 0.03 0.01 - - - - Disposal of discontinued operation - - - 0.40 0.01 - - - Earnings (loss) per share -$ 0.19$ 0.13$ 0.50$ (0.04)$ 0.11$ (0.60)$ 0.36$ Diluted earnings (loss) per share Continuing operations -$ 0.18$ 0.10$ 0.09$ (0.05)$ 0.11$ (0.60)$ 0.35$ Discontinued operations - 0.01 0.03 0.01 - - - - Disposal of discontinued operation - - - 0.40 0.01 - - - Earnings (loss) per share -$ 0.19$ 0.13$ 0.50$ (0.04)$ 0.11$ (0.60)$ 0.35$ Cash dividends declared per share 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ Weighted avg. shares outstanding: Basic 11.7 11.7 11.7 12.2 12.5 12.7 12.7 12.7 Weighted avg. shares outstanding: Diluted 11.7 11.8 11.8 12.3 12.5 12.8 12.7 12.8 Quarter Ended Quarterly Financial Appendix Actual amounts may differ due to rounding. ($ in millions, except for share and per share data)