- Q1 2023 net income of $0.7 million, or $0.03/share
- Q1 2023 sales growth of 11% vs prior year and 12% vs prior
quarter
- Backlog up 16% vs prior year and up 3% vs prior
quarter
- Equipment modernization in U.S. forged business on
track
Ampco-Pittsburgh Corporation (NYSE: AP) reported net income of
$0.7 million, or $0.03 per diluted share, for the three months
ended March 31, 2023, which improved when compared to approximately
breakeven results for the three months ended March 31, 2022.
The Corporation reported net sales of $104.8 million for the
three months ended March 31, 2023, compared to $94.4 million for
the three months ended March 31, 2022. The increase is primarily
attributable to growth in the Air and Liquid Processing segment for
heat exchange coils and custom air handlers. Higher roll pricing
and shipment volumes in the Forged and Cast Engineered Products
segments was largely offset by a decline in shipments of other
forged engineered products and an unfavorable foreign exchange
translation effect.
Operating income of $2.0 million for the three months ended
March 31, 2023, improved compared to an operating loss of $0.5
million for the three months ended March 31, 2022, as both higher
pricing and overall shipment volumes more than offset increases in
operating costs, lower manufacturing overhead cost absorption due
to higher current year plant downtime in the Forged and Cast
Engineered Products segment, and the prior year benefit of a change
in an employee benefit policy.
Commenting on the quarter, Ampco-Pittsburgh’s CEO, Brett
McBrayer, said, “This quarter was back on track with positive
profitability, demonstrating the successful penetration of our
pricing actions in Forged and Cast Engineered Products and our
growth strategy in Air and Liquid. Backlog grew further this
quarter in both segments and the equipment modernization program in
our US forged operations remains on track for completion this
year.”
Other expense of $0.7 million for the three months ended March
31, 2023, compared to other income of $0.4 million for the three
months ended March 31, 2022, primarily due to higher interest
expense on higher debt and higher interest rates. The income tax
provision for the three months ended March 31, 2023, rose due to
higher income in the Corporation’s profitable entities for which no
valuation allowance exists.
Teleconference Access
Ampco-Pittsburgh Corporation will hold a conference call on
Tuesday May 16, 2023, at 10:30 a.m. Eastern Time (ET) to discuss
its financial results for the first quarter ended March 31, 2023.
The Corporation encourages participants to pre-register at any
time, including up to and after the call start time via this link:
https://dpregister.com/sreg/10178472/f944dd7358. Those without
internet access or unable to pre-register should dial in at least
five minutes before the start time using:
- Participant Dial-in (Toll Free): 1-844-308-3408
- Participant International Dial-in: 1-412-317-5408
For those unable to listen to the live broadcast, a replay will
be available one hour after the event concludes on the
Corporation’s website under the Investors menu at
www.ampcopgh.com.
About Ampco-Pittsburgh Corporation
Ampco-Pittsburgh Corporation manufactures and sells highly
engineered, high-performance specialty metal products and
customized equipment utilized by industry throughout the world.
Through its operating subsidiary, Union Electric Steel Corporation,
it is a leading producer of forged and cast rolls for the global
steel and aluminum industries. It also manufactures open-die forged
products that are sold principally to customers in the steel
distribution market, oil and gas industry, and the aluminum and
plastic extrusion industries. The Corporation is also a producer of
air and liquid processing equipment, primarily custom-engineered
finned tube heat exchange coils, large custom air handling systems
and centrifugal pumps. It operates manufacturing facilities in the
United States, England, Sweden, and Slovenia and participates in
three operating joint ventures located in China. It has sales
offices in North America, Asia, Europe, and the Middle East.
Corporate headquarters is located in Carnegie, Pennsylvania.
Forward-Looking
Statements
The Private Securities Litigation Reform Act of 1995 (the “Act”)
provides a safe harbor for forward-looking statements made by us or
on behalf of the Corporation. This press release may include, but
is not limited to, statements about operating performance, trends
and events that the Corporation expects or anticipates will occur
in the future, statements about sales and production levels,
restructurings, the impact from global pandemics, profitability and
anticipated expenses, inflation, the global supply chain, future
proceeds from the exercise of outstanding warrants, and cash
outflows. All statements in this document other than statements of
historical fact are statements that are, or could be, deemed
“forward-looking statements” within the meaning of the Act and
words such as “may,” “will,” “intend,” “believe,” “expect,”
“anticipate,” “estimate,” “project,” “forecast” and other terms of
similar meaning that indicate future events and trends are also
generally intended to identify forward-looking statements.
Forward-looking statements speak only as of the date on which such
statements are made, are not guarantees of future performance or
expectations, and involve risks and uncertainties. For the
Corporation, these risks and uncertainties include, but are not
limited to: economic downturns, cyclical demand for our products
and insufficient demand for our products; excess global capacity in
the steel industry; fluctuations in the value of the U.S. dollar
relative to other currencies; increases in commodity prices or
insufficient hedging against increases in commodity prices,
reductions in electricity and natural gas supply or shortages of
key production materials for us or our customers; limitations in
availability of capital to fund our strategic plan; inability to
maintain adequate liquidity to meet our operating cash flow
requirements, repay maturing debt and meet other financial
obligations; inability to obtain necessary capital or financing on
satisfactory terms to acquire capital expenditures that may be
necessary to support our growth strategy; inoperability of certain
equipment on which we rely and/or our inability to execute our
capital expenditure plan; liability of our subsidiaries for claims
alleging personal injury from exposure to asbestos-containing
components historically used in certain products of our
subsidiaries; changes in the existing regulatory environment;
inability to successfully restructure our operations and/or invest
in operations that will yield the best long term value to our
shareholders; consequences of global pandemics and international
conflicts; work stoppage or another industrial action on the part
of any of our unions; inability to satisfy the continued listing
requirements of the New York Stock Exchange or the NYSE American
Exchange; potential attacks on information technology
infrastructure and other cyber-based business disruptions; failure
to maintain an effective system of internal control; and those
discussed more fully elsewhere in Item 1A, Risk Factors outlined in
Part I of the Corporation’s latest Annual Report on Form 10-K and
Part II of the latest Quarterly Report on Form 10-Q. The
Corporation cannot guarantee any future results, levels of
activity, performance, or achievements. In addition, there may be
events in the future that we are not able to predict accurately or
control which may cause actual results to differ materially from
expectations expressed or implied by forward-looking statements.
Except as required by applicable law, we assume no obligation, and
disclaim any obligation, to update forward-looking statements
whether as a result of new information, events or otherwise.
AMPCO-PITTSBURGH
CORPORATION
FINANCIAL SUMMARY
(in thousands except per share
amounts)
Three Months Ended March 31,
2023
2022
Net sales
$
104,803
$
94,426
Costs of products sold (excl. depreciation
and amortization)
86,372
80,516
Selling and administrative
12,187
9,878
Depreciation and amortization
4,374
4,487
Gain on disposal of assets
(123
)
(2
)
Total operating expenses
102,810
94,879
Income (loss) from operations
1,993
(453
)
Other (expense) income:
Investment-related income
9
4
Interest expense
(2,071
)
(994
)
Other – net
1,367
1,412
Total other (expense) income – net
(695
)
422
Income (loss) before income taxes
1,298
(31
)
Income tax provision
(313
)
(56
)
Net income (loss)
985
(87
)
Less: Net income (loss) attributable to
noncontrolling interest
309
(36
)
Net income (loss) attributable to
Ampco-Pittsburgh
$
676
$
(51
)
Net income (loss) per share attributable
to Ampco-Pittsburgh common shareholders:
Basic
$
0.03
$
0.00
Diluted
$
0.03
$
0.00
Weighted-average number of common shares
outstanding:
Basic
19,404
19,188
Diluted
19,404
19,188
AMPCO-PITTSBURGH
CORPORATION
SEGMENT INFORMATION
(in thousands)
Three Months Ended March 31,
2023
2022
Net Sales:
Forged and Cast Engineered Products
$
76,798
$
74,759
Air and Liquid Processing
28,005
19,667
Consolidated
$
104,803
$
94,426
Income (Loss) from Operations:
Forged and Cast Engineered Products
$
2,224
$
( 398
)
Air and Liquid Processing
2,953
2,661
Corporate costs
(3,184
)
(2,716
)
Consolidated
$
1,993
$
(453
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230515005823/en/
Michael G. McAuley Senior Vice President, Chief Financial
Officer and Treasurer (412) 429-2472 mmcauley@ampcopgh.com
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