- Air and Liquid Processing segment sales increased 29% for Q2
and 35% YTD compared to prior year periods
- June YTD operating income more than triple prior
year
- EPS of $0.02 for Q2 2023 and $0.06 for 2023 YTD
Ampco-Pittsburgh Corporation (NYSE: AP) reported net sales of
$107.2 million and $212.0 million for the three and six months
ended June 30, 2023, respectively, compared to $102.6 million and
$197.0 million for the three and six months ended June 30, 2022,
respectively. The increase is primarily attributable to higher
sales in the Air and Liquid Processing segment driven by improved
volumes.
Commenting on the quarter, Ampco-Pittsburgh’s CEO, Brett
McBrayer, said, “The Air and Liquid segment led the way in sales
growth for both the quarter and year-to-date, and its order intake
continues to set new records in Air and Liquid segment backlog,
which increased 43% compared to a year ago and 14% sequentially.
Despite some higher operating costs in the Forged and Cast
Engineered Products segment and lower demand in the oil and gas and
steel distribution markets for forged products, roll demand on
balance has remained solid and pricing has kept pace with material
and energy costs. Year-to-date consolidated operating income is
more than three times last year’s level. The new equipment in our
US forged business is now in various stages of installation and
this spending program remains on track for full completion by the
end of this year, setting the stage for improved efficiencies in
2024.”
Income from operations for the three and six months ended June
30, 2023, was $3.3 million and $5.3 million, respectively, compared
to $2.1 million and $1.6 million for the three and six months ended
June 30, 2022, respectively. The three and six months ended June
30, 2023, include a benefit from a $1.9 million government energy
credit received by one of the Corporation’s wholly owned foreign
subsidiaries whereas the prior year-to-date period includes a $1.4
million benefit resulting from a change in an employee benefit
policy.
Interest expense for the three and six months ended June 30,
2023, increased in comparison to the same periods of the prior year
due to increasing interest rates and higher borrowings, in part,
due to ongoing expenditures associated with the strategic capital
investment program for the domestic roll operations. Other – net
declined for the three and six months ended June 30, 2023, compared
to the same periods of the prior year, primarily due to losses on
foreign exchange versus gains for the prior year periods.
Net income for the current year periods was significantly
impacted by the higher interest costs and changes in foreign
exchange gains and losses and equaled $0.4 million, or $0.02 per
diluted share, and $1.1 million, or $0.06 per diluted share, for
the three and six months ended June 20, 2023, respectively. This
compares to net income of $2.8 million, or $0.14 per diluted share,
and $2.8 million, or $0.14 per diluted share, for the three and six
months ended June 30, 2022, respectively. The government energy
credit improved earnings per share by $0.10 for the three and six
months ended June 30, 2023, whereas the benefit resulting from a
change in an employee benefit policy improved earnings per share by
$0.07 for the six months ended June 30, 2022.
Segment Results
Forged and Cast Engineered
Products
While comparable on a year-to-date basis, sales for the Forged
and Cast Engineered Products segment for the three months ended
June 30, 2023, declined slightly from the same period of the prior
year primarily due to lower demand from the steel distribution and
oil and gas markets partially offset by a higher volume of mill
roll shipments. Operating results for the three and six months
ended June 30, 2023, improved when compared to the same periods of
the prior year primarily due to improved pricing, net of lower
variable-index surcharges. Although operating results for the three
and six months ended June 30, 2023, include the $1.9 benefit for
the foreign energy credit, this was partly offset by the lower
volume of shipments to the steel distribution and oil and gas
markets.
Air and Liquid Processing
Sales for the Air and Liquid Processing segment for the three
and six months ended June 30, 2023, improved 29% and 35%,
respectively, compared to the same periods of the prior year due to
a higher volume of shipments for each division. Operating results
for the three and six months ended June 30, 2023, improved 15% and
13%, respectively, compared to the same periods of the prior year
on the higher volumes but were adversely affected by product mix,
higher selling and administrative costs, and the non-recurring
$0.7M benefit recorded in the six months ended June 30, 2022
related to the change in employee benefit policy.
Teleconference Access
Ampco-Pittsburgh Corporation will hold a conference call on
Thursday, August 10, 2023, at 10:30 a.m. Eastern Time (ET) to
discuss its financial results for the second quarter ended June 30,
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/10181323/fa0a5e2f8d. Those
without internet access or unable to pre-register should dial in at
least five minutes before the start time using:
- Domestic: 1-844-308-3408
- International: 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 June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Net sales
$
107,211
$
102,582
$
212,014
$
197,008
Cost of products sold (excl. depreciation
and amortization)
85,471
85,083
171,843
165,599
Selling and administrative
14,093
10,974
26,280
20,852
Depreciation and amortization
4,354
4,440
8,728
8,927
Loss (gain) on disposal of assets
5
1
(118
)
(1
)
Total operating expenses
103,923
100,498
206,733
195,377
Income from operations
3,288
2,084
5,281
1,631
Other (expense) income:
Investment-related income
7
2
16
6
Interest expense
(2,245
)
(1,204
)
(4,316
)
(2,198
)
Other – net
98
2,433
1,465
3,845
Total other (expense) income – net
(2,140
)
1,231
(2,835
)
1,653
Income before income taxes
1,148
3,315
2,446
3,284
Income tax provision
(152
)
(389
)
(465
)
(445
)
Net income
996
2,926
1,981
2,839
Less: Net income attributable to
noncontrolling interest
573
119
882
83
Net income attributable to
Ampco-Pittsburgh
$
423
$
2,807
$
1,099
$
2,756
Net income per share attributable to
Ampco-Pittsburgh common shareholders:
Basic
$
0.02
$
0.15
$
0.06
$
0.14
Diluted
$
0.02
$
0.14
$
0.06
$
0.14
Weighted-average number of common
shares
outstanding:
Basic
19,541
19,285
19,504
19,237
Diluted
19,590
19,434
19,587
19,452
AMPCO-PITTSBURGH
CORPORATION
SEGMENT INFORMATION
(in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Net Sales:
Forged and Cast Engineered Products
$
77,581
$
79,578
$
154,379
$
154,337
Air and Liquid Processing
29,630
23,004
57,635
42,671
Consolidated
$
107,211
$
102,582
$
212,014
$
197,008
Income from Operations:
Forged and Cast Engineered Products
$
3,904
$
2,275
$
6,128
$
1,877
Air and Liquid Processing
2,977
2,599
5,930
5,260
Corporate costs
(3,593
)
(2,790
)
(6,777
)
(5,506
)
Consolidated
$
3,288
$
2,084
$
5,281
$
1,631
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230809349556/en/
Michael G. McAuley Senior Vice President, Chief Financial
Officer and Treasurer (412) 429-2472 mmcauley@ampcopgh.com
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