Ampco-Pittsburgh Corporation (NYSE: AP) reported sales for the
three and six months ended June 30, 2017, of $110.6 million and
$214.1 million, respectively, compared to $93.3 million and $156.9
million, respectively, for the three and six months ended June 30,
2016. The current year periods include higher acquisition-related
sales of $14.9 million and $32.1 million, respectively, for the
three and six months ended June 30, 2017 compared to prior year.
Year-to-date sales also reflect higher shipment volumes of mill
rolls and forged engineered products for the oil and gas
industry.
Loss from operations for the three and six months ended June 30,
2017, was $2.0 million and $4.4 million, respectively. This
compares to loss from operations of $4.9 million and $9.8 million,
respectively, for the comparable prior year periods, which included
unfavorable purchase accounting and other acquisition-related
costs.
Net loss for the three and six months ended June 30, 2017, was
$1.9 million or $0.16 per common share and $6.7 million or $0.54
per common share, respectively. This compares to net loss for the
comparable prior year periods of $6.5 million or $0.53 per common
share and $9.4 million or $0.81 per common share, respectively.
Other expense - net for the six months ended June 30, 2017 was $2.9
million unfavorable versus prior year, primarily due to higher
interest expense and a foreign exchange loss this year compared to
a foreign exchange gain in the prior year.
Sales for the Forged and Cast Engineered Products segment for
the three and six months ended June 30, 2017, rose 23% and 50%,
respectively, compared to prior year. For Q2 2017, sales from the
acquired ASW Steel Inc. accounted for most of the increase, while
higher shipments of forged engineered products, primarily for the
oil and gas industry, were nearly offset by lower shipments of mill
rolls. For June year-to-date, the sales increase was led by the
acquisition effect of ASW Steel, higher sales of mill rolls and
higher sales of forged engineered products for the oil and gas
industry. The segment recorded a modest operating loss for both the
three and six months ended June 30, 2017, as higher operating and
raw material costs and lower absorption from the idling of a
foundry were only partly offset by the impact of higher sales
volumes and the recovery of a portion of a receivable associated
with a customer bankruptcy. This compares to larger operating
losses in the prior year periods, which reflected comparatively
lower sales volumes and unfavorable purchase accounting effects
associated with the Åkers Group acquisition.
Sales and operating income for the Air and Liquid Processing
segment for the three and six months ended June 30, 2017, were
comparable to prior year levels.
Commenting on the quarter’s results, John Stanik,
Ampco-Pittsburgh’s Chief Executive Officer said, “Despite rising
costs and a lag in pricing improvement, I am pleased with our
sequential sales growth in Q2 and especially the growth in our
order book. We expect continued sequential improvement through the
rest of this year as our higher backlog of orders deliver and price
increases take effect. We also recently announced a new price
increase for Forged and Cast Engineered products, which we believe
should be manifested in orders delivering in the second half of
2018.”
Teleconference Access
Ampco-Pittsburgh Corporation (NYSE: AP) will hold a conference
call on Tuesday, August 8, 2017, at 10:30 a.m. Eastern Time (ET) to
discuss its financial results for the second quarter ended June 30,
2017. If you would like to participate in the conference call,
please register using the link below or by dialing 1-844-308-3408
at least five minutes before the 10:30 a.m. ET start time.
We encourage participants to pre-register for the conference
call using the following link. Callers who pre-register will be
given a conference passcode and unique PIN to gain immediate access
to the call and bypass the live operator. Participants may
pre-register at any time, including up to and after the call start
time.
To pre-register, please go to:
http://dpregister.com/10110815
Those without internet access or unable to pre-register may dial
in by calling:
- 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 our website
under the Investors menu at www.ampcopgh.com.
The Private Securities Litigation Reform Act of 1995 (the “Act”)
provides a safe harbor for forward-looking statements made by or on
our behalf. This news release may contain forward-looking
statements that reflect our current views with respect to future
events and financial performance. 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. In this document, statements regarding future financial
position, sales, costs, earnings, cash flows, other measures of
results of operations, capital expenditures or debt levels and
plans, objectives, outlook, targets, guidance or goals are
forward-looking statements. Words such as “may,” “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 Ampco-Pittsburgh, these risks and
uncertainties include, but are not limited to, those described
under Item 1A, Risk Factors, of Ampco-Pittsburgh’s Annual Report on
Form 10-K. 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, 2017 2016
2017 2016 Sales
$ 110,550 $
93,301 $ 214,066
$ 156,879
Cost of products sold (excl depreciation
and amortization)
92,017 77,452 176,680 128,557 Selling and administrative 14,903
15,187 30,201 28,695 Depreciation and amortization 5,646 5,530
11,568 9,455 (Gain) on disposal of assets
(1 )
(12 )
(1 )
(9 ) Total operating expense
112,565 98,157
218,448 166,698
Loss from operations (2,015 ) (4,856 ) (4,382
) (9,819 ) Other (expense) income – net
(321
) (601 )
(2,531 ) 366
Loss before income taxes (2,336 ) (5,457 ) (6,913 ) (9,453 )
Income tax benefit (provision) 102 (875 ) (33 ) (25 )
Equity earnings (loss) in Chinese joint
venture
485 (61
) 535
111 Net loss before non-controlling
interest (1,749 ) (6,393 ) (6,411 ) (9,367 )
Net income attributable to non-controlling
interest
164 93
285 9 Net loss
$ (1,913 ) $
(6,486 ) $
(6,696 ) $
(9,376 ) Loss per common share:
Basic
$ (0.16 )
$ (0.53 ) $
(0.54 ) $ (0.81
) Diluted
$ (0.16
) $ (0.53 )
$ (0.54 ) $
(0.81 )
Weighted-average number of common shares
outstanding:
Basic
12,327 12,250
12,299 11,628
Diluted
12,327
12,250 12,299
11,628
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170808005743/en/
Ampco-Pittsburgh CorporationMichael G. McAuley, 412-429-2472Vice
President, Chief Financial Officer and Treasurermmcauley@ampcopgh.com
Ampco Pittsburgh (NYSE:AP)
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