- Q3 2022 EPS of $0.04 per share
- Record high Air and Liquid Processing segment
backlog
- U.S. equipment modernization project on-track with arrival
of first machine tool expected in Q4 2022
- Improved liquidity from execution of sale and leaseback
financing and equipment financing agreements
Ampco-Pittsburgh Corporation (NYSE: AP) (the "Corporation" or
“Ampco-Pittsburgh”) reported net sales of $99.6 million and $296.7
million, respectively, for the three and nine months ended
September 30, 2022, compared to $81.2 million and $260.4 million
for the three and nine months ended September 30, 2021,
respectively. The increase is primarily attributable to higher
selling prices and variable-index surcharges in the Forged and Cast
Engineered products and a higher level of shipments in both
segments, offset in part by unfavorable foreign exchange
translation.
Net income was $0.8 million, or $0.04 per diluted share, and
$2.9 million, or $0.15 per diluted share, for the three and nine
months ended September 30, 2022, respectively. This compares to a
net loss of $1.6 million, or $0.08 per diluted share, and $0.4
million, or $0.02 per diluted share, for the three and nine months
ended September 30, 2021, respectively.
Commenting on the quarter, Ampco-Pittsburgh’s CEO, Brett
McBrayer, said, “Despite the negative operating environment in
Europe and planned maintenance downtime taken during the quarter in
our Forged and Cast Engineered Products segment, Ampco-Pittsburgh
reported positive net income in Q3. While energy prices in Europe
increased further during the quarter, certain commodity prices have
fallen from their peaks, helping our product surcharges to keep
pace. Sales growth included higher roll shipments and I am
especially pleased with the growth we are experiencing in the Air
& Liquid segment, with another record-setting quarter for its
order book. In addition, the Corporation improved its liquidity
position during the quarter by successfully executing sale and
leaseback and equipment financing transactions.”
(Loss) income from operations for the three and nine months
ended September 30, 2022, was $(0.1) million and $0.8 million,
respectively, compared to (loss) from operations of $(2.4) million
and $(1.0) million for the three and nine months ended September
30, 2021, respectively. The change primarily reflects inflationary
increases in operating costs being approximately offset by higher
pricing and variable-index surcharges, the benefit of a higher
volume of shipments, and, for the year-to-date period, the
favorable impact of an employee benefit change.
Investment-related income for the three months ended September
30, 2022, improved compared to the prior year due to the timing of
dividend income received in the quarter from one of the
Corporation’s Chinese joint ventures, but declined in amount for
the nine months ended September 30, 2022 compared to the prior
year. Interest expense for the three and nine months ended
September 30, 2022, increased in comparison to the prior year based
on higher bank debt and higher interest rates. Other – net for the
three and nine months ended September 30, 2022, increased in
comparison to the prior year due primarily to higher gains on
foreign exchange transactions, offset in part by Rabbi Trust
mark-to-market losses in the current year periods.
The income tax provision for the three and nine months ended
September 30, 2022, included expense of $0.3 million, or $0.02 per
common share, for the revaluation of certain deferred tax assets
associated with the Pennsylvania tax rate change. The income tax
provision for the nine months ended September 30, 2021, included
expenses totaling $0.5 million, or $0.03 per common share, for the
revaluation of certain deferred income tax liabilities for a future
tax rate change enacted in the U.K. and for the restructuring of a
foreign sales office.
Segment Results
Forged and Cast Engineered
Products
Sales for the Forged and Cast Engineered Products segment for
the three and nine months ended September 30, 2022, improved from
the prior year period due to higher selling prices and
variable-index surcharges passed through to customers as a result
of higher raw material, energy and transportation costs, a higher
volume of mill roll shipments, and for the year-to-date period, a
higher volume of forged engineered products to the steel
distribution and oil and gas markets. Unfavorable foreign exchange
translation was a partly offsetting factor.
Operating results for the three and nine months ended September
30, 2022, improved compared to the prior year periods primarily due
to improved recovery of costs and higher shipments.
Air and Liquid Processing
Sales for the Air and Liquid Processing segment for the three
and nine months ended September 30, 2022, increased primarily due
to higher shipments in the heat exchange coil and custom air
handling businesses. Operating results were comparable to prior
year for the three months ended September 30, 2022 given
unfavorable sales mix due to supply chain issues, but improved for
the nine months ended September 30, 2022, primarily due to higher
shipment volumes of heat exchange coils.
Teleconference Access
Ampco-Pittsburgh Corporation will hold a conference call on
Tuesday, November 15, 2022, at 10:30 a.m. Eastern Time (ET) to
discuss its financial results for the third quarter ended September
30, 2022. 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/10172779/f4f566692a. 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 (including
COVID-19), 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 cyclical demand for
products and economic downturns; excess global capacity in the
steel industry; fluctuations of the value of the U.S. dollar
relative to other currencies; increases in commodity prices,
reductions in electricity and natural gas supply or shortages of
key production materials; limitations in availability of capital to
fund our operations and strategic plan; inability to maintain
adequate liquidity in order 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 in order to acquire capital expenditures that
may be required to support our growth strategy; inoperability of
certain equipment on which we rely; 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;
consequences of global pandemics (including COVID-19); 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 controls; disruptions caused by
hostilities, including any disruptions caused by the hostilities in
Ukraine; and those discussed more fully elsewhere in this report
and in documents filed with the Securities and Exchange Commission
by the Corporation, particularly in Item 1A, Risk Factors, 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 the Corporation may not be 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,
the Corporation assumes no obligation, and disclaims 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
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Net sales
$
99,647
$
81,185
$
296,655
$
260,413
Cost of products sold (excl. depreciation
and amortization)
84,378
67,990
250,685
213,011
Selling and administrative
11,089
10,910
31,941
34,538
Depreciation and amortization
4,206
4,279
13,133
13,515
Loss on disposal of assets
48
367
47
334
Total operating expenses
99,721
83,546
295,806
261,398
(Loss) income from operations
(74
)
(2,361
)
849
(985
)
Other income (expense):
Investment-related income
507
14
513
1,079
Interest expense
(1,486
)
(834
)
(3,684
)
(2,672
)
Other – net
3,174
2,006
7,019
4,694
Total other income – net
2,195
1,186
3,848
3,101
Income (loss) before income taxes
2,121
(1,175
)
4,697
2,116
Income tax provision
(987
)
(291
)
(1,432
)
(2,044
)
Net income (loss)
1,134
(1,466
)
3,265
72
Less: Net income attributable to
noncontrolling interest
288
123
371
431
Net income (loss) attributable to
Ampco-Pittsburgh
$
846
$
(1,589
)
$
2,894
$
(359
)
Net income (loss) per share attributable
to
Ampco-Pittsburgh common shareholders:
Basic
$
0.04
$
(0.08
)
$
0.15
$
(0.02
)
Diluted
$
0.04
$
(0.08
)
$
0.15
$
(0.02
)
Weighted-average number of common
shares
outstanding:
Basic
19,396
19,093
19,291
18,905
Diluted
19,522
19,093
19,473
18,905
AMPCO-PITTSBURGH
CORPORATION
SEGMENT INFORMATION
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Net Sales:
Forged and Cast Engineered Products
$
75,511
$
61,179
$
229,848
$
195,558
Air and Liquid Processing
24,136
20,006
66,807
64,855
Consolidated
$
99,647
$
81,185
$
296,655
$
260,413
(Loss) Income from Operations:
Forged and Cast Engineered Products
$
(62
)
$
(2,832
)
$
1,107
$
688
Air and Liquid Processing
2,917
2,891
8,177
7,265
Corporate costs
(2,929
)
(2,420
)
(8,435
)
(8,938
)
Consolidated
$
(74
)
$
(2,361
)
$
849
$
(985
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221114006077/en/
Michael G. McAuley Senior Vice President, Chief Financial
Officer and Treasurer (412) 429-2472 mmcauley@ampcopgh.com
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