Ampco-Pittsburgh Corporation (NYSE: AP) Announces Second Quarter 2023 Results
-
Air and Liquid Processing segment sales increased
29% for Q2 and35% YTD compared to prior year periods - June YTD operating income more than triple prior year
-
EPS of
for Q2 2023 and$0.02 for 2023 YTD$0.06
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
Income from operations for the three and six months ended June 30, 2023, was
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
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
Air and Liquid Processing
Sales for the Air and Liquid Processing segment for the three and six months ended June 30, 2023, improved
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
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
AMPCO-PITTSBURGH CORPORATION FINANCIAL SUMMARY (in thousands, except per share amounts) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
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 |
|
|
|
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
|
|
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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) |
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|
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Three Months Ended
|
|
Six Months Ended
|
||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
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|
|
|
|
|
|
|
|
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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
Source: Ampco-Pittsburgh Corporation