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): August 3, 2017

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))

 Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act

of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition

period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act. o

Item 2.02 Results of Operations and Financial Condition.

On August 3, 2017, Hardinge Inc. (the “Company”) issued a press release announcing the Company’s second quarter 2017 financial results. Copies of the press release used in connection with the Company's earnings conference call and webcast on August 3, 2017 and the supplemental slides posted to the Company's website are respectively included as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits.

EXHIBIT NUMBER	DESCRIPTION
99.1	Press release issued by Registrant on August 3, 2017 announcing second quarter 2017 results.
99.2	Supplemental slides posted to the Company's website.

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	August 3, 2017
		/s/ Douglas J. Malone
		Douglas J. Malone Senior Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

NEWS RELEASE

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

Hardinge Reports Second Quarter2017 Results

• Second quarter sales grew 11% to $78.2 million; up 14% excluding unfavorable foreign currency translation

• Diluted earnings per share up significantly to $0.20 from $0.01; Net income grew to $2.5 million from $0.1 million

• Orders of $92.7 million increased 15% with growth in all three regions

• Backlog of $144.9 million reaches five-year high

ELMIRA, N.Y., August 3, 2017-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.

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Hardinge Reports Second Quarter 2017 Results

August 3, 2017

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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.

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Hardinge Reports Second Quarter 2017 Results

August 3, 2017

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• 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 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.

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Hardinge Reports Second Quarter 2017 Results

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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.

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

FINANCIAL TABLES FOLLOW.

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Hardinge Reports Second Quarter 2017 Results

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HARDINGE INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except share and per share data)

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2017			2016			2017			2016
	(unaudited)						(unaudited)
Sales	$	78,197		$	70,186		$	142,754		$	138,007
Cost of sales	51,568			46,633			94,738			91,711
Gross profit	26,629			23,553			48,016			46,296
Gross profit margin	34.1		%	33.6		%	33.6		%	33.5		%
Selling, general and administrative expenses	20,081			19,637			38,103			40,230
Research & development	3,777			3,369			7,335			6,656
Restructuring	542			226			1,978			426
Other expense (income), net	37			20			192			(72		)
Income (loss) from operations	2,192			301			408			(944		)
Operating margin	2.8		%	0.4		%	0.3		%	(0.7		)%
Interest expense	104			132			210			285
Interest income	(38		)	(69		)	(79		)	(136		)
Income (loss) before income taxes	2,126			238			277			(1,093		)
Income tax (benefit) expense	(396		)	93			(198		)	8
Net Income (loss)	$	2,522		$	145		$	475		$	(1,101	)
Per share data:
Basic earnings (loss) per share:	$	0.20		$	0.01		$	0.04		$	(0.09	)
Diluted earnings (loss) per share:	$	0.20		$	0.01		$	0.04		$	(0.09	)
Cash dividends declared per share:	$	0.02		$	0.02		$	0.04		$	0.04
Weighted avg. shares outstanding: Basic	12,894			12,812			12,887			12,804
Weighted avg. shares outstanding: Diluted	12,932			12,901			12,921			12,804

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August 3, 2017

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HARDINGE INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except share and per share data)

	June 30, 2017			December 31, 2016
	(Unaudited)
Assets
Cash and cash equivalents	$	26,369		$	28,255
Restricted cash	2,509			2,923
Accounts receivable, net	55,071			55,573
Inventories, net	118,478			107,018
Other current assets	11,321			6,926
Total current assets	213,748			200,695
Property, plant and equipment, net	57,192			56,961
Goodwill	6,658			6,579
Other intangible assets, net	26,698			26,730
Other non-current assets	6,047			6,585
Total non-current assets	96,595			96,855
Total assets	$	310,343		$	297,550
Liabilities and shareholders’ equity
Notes payable to bank	$	99		$	703
Accounts payable	25,982			24,217
Accrued expenses	27,140			25,629
Customer deposits	23,063			18,215
Accrued income taxes	671			1,160
Current portion of long-term debt	4,636			2,923
Total current liabilities	81,591			72,847
Long-term debt	—			2,970
Pension and postretirement liabilities	57,635			58,840
Deferred income taxes	4,343			3,800
Other liabilities	1,669			3,152
Total non-current liabilities	63,647			68,762
Commitments and contingencies
Common stock ($0.01 par value, 20,000,000 authorized; shares issued 12,943,789 and 12,903,037)	129			129
Additional paid-in capital	121,489			121,015
Retained earnings	89,510			89,557
Treasury shares (at cost, 0 and 9,243)	—			(104		)
Accumulated other comprehensive loss	(46,023		)	(54,656		)
Total shareholders’ equity	165,105			155,941
Total liabilities and shareholders’ equity	$	310,343		$	297,550

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HARDINGE INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

	Six Months Ended   June 30,
	2017			2016
	(Unaudited)
Operating activities
Net income (loss)	$	475		$	(1,101	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Impairment	1,401			—
Depreciation and amortization	4,411			4,098
Debt issuance costs amortization	65			66
Deferred income taxes	132			(119		)
Gain on sale of assets	(16		)	(4		)
Unrealized foreign currency transaction gain	(819		)	(116		)
Changes in operating assets and liabilities:
Accounts receivable	2,261			11,826
Restricted cash	499			(331		)
Inventories	(8,251		)	(7,720		)
Other assets	(2,893		)	(1,330		)
Accounts payable	745			(2,170		)
Customer deposits	4,132			(3,886		)
Accrued expenses	(2,381		)	(5,211		)
Accrued pension and postretirement liabilities	(19		)	(41		)
Net cash used in operating activities	(258		)	(6,039		)
Investing activities
Capital expenditures	(968		)	(992		)
Proceeds from sales of assets	16			37
Net cash used in investing activities	(952		)	(955		)
Financing activities
Proceeds from short-term notes payable to bank	12,418			28,871
Repayments of short-term notes payable to bank	(13,062		)	(28,643		)
Repayments of long-term debt	(1,456		)	(2,271		)
Dividends paid	(516		)	(536		)
Net cash used in financing activities	(2,616		)	(2,579		)
Effect of exchange rate changes on cash	1,940			167
Net decrease in cash	(1,886		)	(9,406		)
Cash and cash equivalents at beginning of period	28,255			32,774
Cash and cash equivalents at end of period	$	26,369		$	23,368

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Quarterly Sales by Region ($ in thousands)
	Quarter Ended
	June 30, 2017		June 30, 2016		March 31, 2017
Sales to Customers in	$	% of Total	$	Year-over-Year % Change	$	Sequential % Change
North America	24,220	31%	20,694	17%	19,583	24%
Europe	22,240	28%	22,242	—%	17,702	26%
Asia	31,737	41%	27,250	16%	27,272	16%
Total	78,197		70,186	11%	64,557	21%

Year-to-Date Sales by Region ($ in thousands)
		Six Months Ended
	June 30, 2017		June 30, 2016
Sales to Customers in	$	% of Total	$	Year-over-Year % Change
North America	43,803	31%	38,144	15%
Europe	39,942	28%	46,084	(13)%
Asia	59,009	41%	53,779	10%
Total	142,754		138,007	3%

Quarterly Orders by Region ($ in thousands)
	Quarter Ended
	June 30, 2017		June 30, 2016		March 31, 2017
Orders from Customers in	$	% of Total	$	Year-over-Year % Change	$	Sequential % Change
North America	27,003	29%	25,520	6%	23,669	14%
Europe	30,021	32%	26,859	12%	21,290	41%
Asia	35,692	38%	28,555	25%	27,987	28%
Total	92,716		80,934	15%	72,946	27%

Year-to-Date Orders by Region ($ in thousands)
			Six Months Ended
	June 30, 2017			June 30, 2016
Orders from Customers in	$		% of Total	$		Year-over-Year % Change
North America	$	50,672	31%	$	49,423	3%
Europe	51,311		31%	43,988		17%
Asia	63,679		38%	52,448		21%
Total	165,662			145,859		14%

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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 SUBSIDIARIES

Reconciliation 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
	Amount		% of Sales		Amount		% of Sales
Income from operations as reported	$	2,192	2.8	%	$	301	0.4	%
Adjustments to reported income from operations:
Restructuring charges	542		0.7	%	226		0.3	%
Professional fees for strategic review process	—		—	%	404		0.6	%
Other adjustments	1,161		1.5	%	—		—	%
Non-GAAP income from operations as adjusted	$	3,895	5.0	%	$	931	1.3	%

	Six Months Ended   June 30, 2017				Six Months Ended   June 30, 2016
	Amount		% of Sales		Amount			% of Sales
Income (loss) from operations as reported	408		0.3	%	$	(944	)	(0.7	)%
Adjustments to reported income (loss) from operations:
Restructuring charges	1,978		1.4	%	426			0.3	%
Professional fees for strategic review process	—		—	%	1,103			0.8	%
Other adjustments	1,303		0.9	%	—			—	%
Non-GAAP income from operations as adjusted	$	3,689	2.6	%	$	585		0.4	%

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HARDINGE INC. AND SUBSIDIARIES

Reconciliation 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
	Amount		EPS		Amount		EPS
Net income as reported	$	2,522	$	0.20	$	145	$	0.01
Adjustments to reported net income, pre-tax: (1)
Restructuring charges	496		0.04		226		0.02
Professional fees for strategic review process	—		—		404		0.03
Other adjustments	1,161		0.09		—		—
Non-GAAP net income as adjusted	$	4,179	$	0.33	$	775	$	0.06

	Six Months Ended   June 30, 2017				Six Months Ended   June 30, 2016
	Amount		EPS		Amount			EPS
Net (loss) income as reported	$	475	$	0.04	$	(1,101	)	$	(0.09	)
Adjustments to reported net (loss) income, pre-tax: (1)
Restructuring charges	1,926		0.15		426			0.03
Professional fees for strategic review process	—		—		1,103			0.09
Other adjustments	1,303		0.10		—			—
Non-GAAP net income as adjusted	$	3,704	$	0.29	$	428		$	0.03

⁽¹⁾ items have no tax effect due to full tax valuation allowances in the related jurisdictions.

-END-

EX-99.2

© 2017 Hardinge Inc. 1 www.Hardinge.com August 3, 2017 HARDINGE Second Quarter 2017 Financial Results

© 2017 Hardinge Inc. 2 www.Hardinge.com 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. This presentation will discuss some non-GAAP financial measures, which the Company believes are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results compared in accordance with GAAP. The Company has provided reconciliations of comparable GAAP to non- GAAP measures in tables found in the Supplemental Information portion of this presentation.

© 2017 Hardinge Inc. 3 www.Hardinge.com Sales ($ in millions) $109 $101 $108 $93 $99 $100 $103 $97 $91 $85 $120 $108 $110 $108 $113 2013 2014 2015 2016 Q2 2017 TTM $315 $292 $312 $297 $329 $21 $25 $30 $20 $24 $22 $18 $27 $18 $22 $27 $24 $30 $27 $32 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Quarterly Net Sales Annual Net Sales  Excluding unfavorable FX impact of $1.5 million, Q2 2017 sales improved 14% over prior-year period  Strong results in North America and Asia on improved industrial environment driving higher machine sales  Sales in Europe were flat: reflects the timing of machine orders Actual net sales may differ due to rounding. $70 $67 $87 $78 North America Europe Asia $65

© 2017 Hardinge Inc. 4 www.Hardinge.com $23.6 $23.2 $28.1 $21.4 $26.6 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Gross Profit & Margin Quarterly Annual  Gross profit margin improved on volume and product mix  Margins benefitting from the 2015-2016 restructuring $105.7 $100.8 $104.6 $97.5 $99.3 2013 2014 2015 2016 Q2 2017 TTM 33.6% 34.4% 32.4% 33.1% 32.1% 32.3% 33.2% 33.4% 33.5% All amounts shown pertain to continuing operations. 34.1% ($ in millions)

© 2017 Hardinge Inc. 5 www.Hardinge.com $14.9 $2.8 $7.7 $4.4 7.6 $2.6 2013 2014 2015 2016 Q2 2017 TTM $9.9 $(2.1) $1.2 $2.8 $(0.3) $(0.5) $0.7 $4.2 $4.2 [CELLRAN GE] [CELLRAN GE] [CELLRAN GE] [CELLRAN GE] [CELLRAN GE] Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Quarterly Net Income (Loss) Reported & Adjusted* Annual Net Income (Loss) Reported & Adjusted* Net Income (Loss) ($ in millions) * Adjusted Net Income (Loss) is a non-GAAP financial measure. Hardinge believes that the use of Adjusted Net Income (Loss) helps in the understanding of the Company’s financial results. See supplemental slides for an Adjusted Net Income (Loss) reconciliation and other important disclaimers. GAAP NON-GAAP*  Diluted EPS up 20x to $0.20  Included $1.1 million of atypical expenses and $0.5 million restructuring costs

© 2017 Hardinge Inc. 6 www.Hardinge.com $26.9 $14.9 $18.8 $15.7 $18.8 2013 2014 2015 2016 Q2 2017 TTM $3.1 $2.9 $7.7 $2.0 $6.2 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 EBITDA and Margin* Adjusted EBITDA & Margin* Adjusted EBITDA & Margin* * Adjusted EBITDA & Margin are non-GAAP financial measures. Hardinge believes that the use of Adjusted EBITDA & Margin helps in the understanding of the Company’s financial results. See supplemental slides for an Adjusted EBITDA & Margin reconciliation and other important disclaimers regarding Adjusted EBITDA & Margin. 8.2% 4.8% 6.0% 5.4% 6.3% 4.4% 4.3% 8.9% 3.1% 7.9% ($ in millions)  Operating leverage drove improvement  Positive effect of restructuring efforts

© 2017 Hardinge Inc. 7 www.Hardinge.com $203.6 $169.6 $161.1 $155.9 $165.1 $26.6 $16.2 $11.8 $5.9 $4.6 2013 2014 2015 2016 6/30/2017 Equity Debt $34.7 $16.3 $32.8 $28.3 $26.4 2013 2014 2015 2016 6/30/2017 Total Capitalization ($ in millions) $3.9 $3.2 $4.2 $2.5 $1.0 2013 2014 2015 2016 1H 2017 Cash & Cash Equivalents Capital Expenditures Financial Strength and Flexibility

© 2017 Hardinge Inc. 8 www.Hardinge.com 59 61 61 61 62 2013 2014 2015 2016 Q2 2017 Inventory Turns (monthly avg.) Receivable Days Outstanding (monthly avg.) * Managed Working Capital is defined as: Receivables + Inventory - Payables - Customer Deposits 43% 42% 40% 42% 42% 2013 2014 2015 2016 Q2 2017 1.7 1.8 1.8 1.6 1.7 2013 2014 2015 2016 Q2 2017 Managed Working Capital* as a Percent of Sales (monthly avg.) Emphasis on Productivity and Cash  Managed working capital remained 42% of sales  See potential to improve all aspects of working capital requirements: DSO, DPO and inventory

© 2017 Hardinge Inc. 9 www.Hardinge.com ($ in millions) Annual Orders $86 $105 $99 $102 $103 $95 $109 $97 $92 $100 $107 $117 $120 $117 $128 2013 2014 2015 2016 Q2 2017 TTM $331 $288 $331 Quarterly Orders $26 $27 $25 $24 $27 $27 $20 $28 $21 $30 $28 $28 $37 $28 $36 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 $75 $90  Strong orders in all regions; up 15% Q2 2017 over Q2 2016: • Asia +25%, Europe +12%, North America +6%  Demand for machine tools has been improving in all markets Actual orders may differ due to rounding. $316 $93 Broad Geographic Presence $81 $311 North America Europe Asia $73

© 2017 Hardinge Inc. 10 www.Hardinge.com ($ in millions) Backlog  Backlog increased 14% over Q1 2017 and 32% versus the prior-year period on strong demand for machine tools  Lead times vary by product line • Machine tools: two to nine months • Workholding parts and accessories: Standard - next day, Specials – four to eight weeks $99 $107 $108 $115 $133 $11 $10 $9 $12 $12 6/30/2016 9/30/2016 12/31/2016 3/31/2017 06/30/2017 Machine Tools Workholding Parts & Accessories Backlog by Product Line $110 $117 $117 $127 $145

© 2017 Hardinge Inc. 11 www.Hardinge.com Perspectives – 90 Day Review  Exceptional position in China: • Capabilities • Market Presence  Global capabilities  Strong brands  Outstanding people  HIPEx foundation for continuous improvement mindset  Site Optimization  Underleveraging scale and people  Lack common Platform  Complex structure  Under penetrated in key markets in U.S. and Europe +’s ’s

© 2017 Hardinge Inc. 12 www.Hardinge.com Current Focal Areas and Outlook  Complete announced restructuring by mid-2018 • Pre-tax annualized savings of $2.0 to $2.5 million • Restructuring costs of $3.8 to $4.3 million; $1.6 million is non-cash  Develop plan to optimize footprint and operating structure • Simplify business organization and legal structure • Leverage capabilities across the enterprise • Common operating systems • Goal alignment  Focused working capital reduction initiatives  Embrace value system  Produce a long term strategic plan and goals

© 2017 Hardinge Inc. 13 www.Hardinge.com Our Operating Values Values

© 2017 Hardinge Inc. 14 www.Hardinge.com August 3, 2017 HARDINGE Second Quarter 2017 Financial Results

© 2017 Hardinge Inc. 15 www.Hardinge.com SUPPLEMENTAL INFORMATION

© 2017 Hardinge Inc. 16 www.Hardinge.com Annual Adjusted Net Income, Operating Income & Margin and EBITDA & Margin Net Income (Loss), Operating Income, Operating Margin, EBITDA and EBITDA Margin in 2013, 2014, 2015, 2016 and Q2 2017 TTM were adjusted to exclude atypical items as listed above. Hardinge believes that when used in conjunction with GAAP measures, Adjusted Net Income, Adjusted Operating 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. ($ in millions) 2013 2014 2015 2016 Q2 17 TTM Net income (loss) 9.9$ (2.1)$ 2.6$ 1.2$ 2.8$ 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 - (0.5) - - - Inventory adjustment - - 0.7 - - Inventory step-up charge 1.9 0.1 - - - Acquisition transaction expenses 2.2 0.1 - - - Restructuring expenses - - 3.6 0.7 2.2 Professional fees for strategic review process - - 0.8 1.3 0.2 Pension Settlement Loss - - - 0.5 0.5 Other adjustments 0.2 - - 0.7 1.9 Adjusted net income 14.9 2.8 7.7 4.4 7.6 Plus: Interest expense, net 1.0 0.7 0.4 0.4 0.4 Adjusted income tax expense 1.4 1.6 1.9 2.1 1.9 Adjusted operating income 17.3 5.1 10.0 6.9 9.9 Depreciation and amortization expense 9.6 9.8 8.8 8.8 8.9 Adjusted EBITDA 26.9$ 14.9$ 18.8$ 15.7$ 18.8$ Sales $329.5 $311.6 315.3$ 292.0$ 296.8$ Adjusted operating margin 5.3% 1.7% 3.2% 2.4% 3.3% Adjusted EBITDA margin 8.2% 4.8% 6.0% 5.4% 6.3%

© 2017 Hardinge Inc. 17 www.Hardinge.com Quarterly Adjusted Net Income (Loss), Operating Income (Loss) & Margin and EBITDA & Margin Quarterly Net Income (Loss) , Operating Income (Loss) , Operating Margin, EBITDA and EBITDA Margin in all periods presented were adjusted to exclude atypical 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. ($ in millions) Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Net income (loss) 0.1$ (1.4)$ 3.7$ (2.0)$ 2.5$ Restructuring expenses 0.2 0.2 0.1 1.4 0.5 Professional fees for strategic review process 0.4 0.1 0.1 - - Pension Settlement Loss - 0.6 (0.1) - - Other adjustments - 0.2 0.4 0.1 1.2 Adjusted net income (loss) 0.7 (0.3) 4.2 (0.5) 4.2 Plus: Interest expense, net 0.1 0.1 0.1 0.1 0.1 Adjusted income tax expense (benefit) 0.1 0.9 1.2 0.2 (0.4) Adjusted operating income (loss) 0.9 0.7 5.5 (0.2) 3.9 Depreciation and amortization expense 2.2 2.2 2.2 2.2 2.3 Adjusted EBITDA 3.1$ 2.9$ 7.7$ 2.0$ 6.2$ Sales 70.2 67.2 86.8 64.6 78.2 Adjusted operating margin 1.3 % 1.0 % 6.3 % (0.3)% 5.0 % Adjusted EBITDA margin 4.4 % 4.3 % 8.9 % 3.1 % 7.9 %

© 2017 Hardinge Inc. 18 www.Hardinge.com Quarterly Financial Appendix Actual amounts may differ due to rounding. (in millions, except per share data) 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 12/31/2016 3/31/2017 6/30/2017 Sales 76.8$ 87.0$ 67.8$ 70.2$ 67.2$ 86.8$ 64.6$ 78.2$ Cost of sales 51.4 56.6 45.1 46.6 44.0 58.7 43.2 51.6 Gross profit 25.4 30.4 22.7 23.6 23.2 28.1 21.4 26.6 Gross profit margin 33.1% 34.9% 33.5% 33.6% 34.4% 32.4% 33.1% 34.1% Selling, general and administrative expenses 19.9 20.7 20.5 19.7 20.0 19.3 18.0 20.1 Research & development 3.7 3.4 3.3 3.4 3.3 3.6 3.6 3.8 Restructuring charges 0.9 2.7 0.2 0.2 0.2 0.1 1.4 0.5 Other expense (income) 0.2 0.4 (0.1) - 0.3 0.1 0.2 - Income (loss) from operations 0.7 3.2 (1.2) 0.3 (0.6) 5.0 (1.8) 2.2 Operating margin 1.0 % 3.7 % (1.8)% 0.4 % (0.9)% 5.8 % (2.8)% 2.8 % Interest expense, net 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Income (loss) before income taxes 0.6 3.1 (1.3) 0.2 (0.7) 4.9 (1.9) 2.1 Income tax expense (benefit) 0.9 0.4 (0.1) 0.1 0.7 1.2 0.2 (0.4) Net income (loss) (0.3)$ 2.7$ (1.2)$ 0.1$ (1.4)$ 3.7$ (2.0)$ 2.5$ Basic earnings (loss) per share: Continuing operations (0.03)$ 0.22$ (0.10)$ 0.01$ (0.11)$ 0.29$ (0.16)$ 0.20$ Earnings (loss) per share (0.03)$ 0.22$ (0.10)$ 0.01$ (0.11)$ 0.29$ (0.16)$ 0.20$ Diluted earnings (loss) per share: Continuing operations (0.03)$ 0.21$ (0.10)$ 0.01$ (0.11)$ 0.29$ (0.16)$ 0.20$ Earnings (loss) per share (0.03)$ 0.21$ (0.10)$ 0.01$ (0.11)$ 0.29$ (0.16)$ 0.20$ 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 12.8 12.8 12.8 12.8 12.8 12.9 12.9 12.9 Weighted avg. shares outstanding: Diluted 12.8 12.9 12.8 12.9 12.8 12.9 12.9 12.9

© 2017 Hardinge Inc. 19 www.Hardinge.com Source: Oxford Economics Spring 2017 Global Machine Tool Outlook Report $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Americas Europe Asia World M ach in e To o l C o n sump ti o n (in U S$ b ill io n s) Oxford Economics Machine Tool Forecast Machine tool industry - $80 billion Drivers of Machine Tool Consumption:  Emerging economies - growing middle class  Obsolescence - older machines technologically outdated  Automation - shrinking supply of skilled machinists  Global competitiveness - advancing productivity Expect moderate long-term demand growth ~3% Emerging Economies Drive Demand  China driving global growth