- Positive earnings continue despite lower pandemic-related
sales.
- Activity increasing in roll and engineered products
markets.
- Continued strong liquidity position. Debt-to-total-capital
ratio of 29.2%, nearly half of prior year level.
Ampco-Pittsburgh Corporation (NYSE: AP) (the "Corporation" or
“Ampco-Pittsburgh”) reported net sales of $86.8 million for the
three months ended March 31, 2021, compared to $91.1 million for
the three months ended March 31, 2020. The decrease is primarily
attributable to lower shipments of mill rolls than pre-pandemic
levels, offset in part by higher shipments of forged engineered
products.
Income from operations for the three months ended March 31,
2021, was $0.9 million, compared to $4.4 million for the three
months ended March 31, 2020. The decline primarily reflects the
impacts of lower shipments, lower cost absorption associated with
reduced production levels, higher raw material costs net of
pass-throughs, a less favorable sales mix of mill rolls, and an
insurance recovery of $0.8 million which benefited the prior year
period.
Interest expense for the three months ended March 31, 2021,
declined in comparison to the prior year based on reduced debt,
which remained sequentially stable with the prior quarter. Loss on
foreign exchange was $1.2 million for the three months ended March
31, 2021. Other – net improved from a year ago, however, as foreign
exchange losses were lower in the current year and an unrealized
gain was recorded on Rabbi Trust investments in the current year
compared to a loss in the prior year.
Earnings per share was $0.01 for the three months ended March
31, 2021, compared to $0.33 per share for the three months ended
March 31, 2020, which included a $0.34 per share combined benefit
for the CARES Act tax loss carryback and the proceeds from the
insurance claim.
Commenting on the quarter, Ampco-Pittsburgh’s CEO, Brett
McBrayer, said, “Despite the pandemic’s lingering impact on our
global operations, we continue to demonstrate our resilience,
delivering another positive quarter. These results reflect a
significant negative foreign exchange impact as well as higher
production costs due in part to lower production levels in our
Forged and Cast Engineered Products facilities. We anticipate a
recovery in order activity for our roll business in the second half
of the year as customer inventories deplete with expected higher
mill utilization rates. Our forged engineered products continue to
gain traction in the marketplace and demand in our Air and Liquid
Processing segment remains solid. I’m very excited about our
capital equipment investment activities, which commenced during the
quarter, and the significant impact these actions will have on
future profitability and growth.”
Segment Results
Forged and Cast Engineered
Products
Sales from operations for the three months ended March 31, 2021,
declined from the prior year period primarily due to lower
pandemic-related demand for mill rolls, offset in part by increased
shipments of forged engineered products for the oil and gas and
steel distribution industries. Operating results for the three
months ended March 31, 2021, declined compared to the prior year
due to lower shipments, lower cost absorption from resulting
reduced production levels, higher raw material costs net of
pass-throughs, a less favorable product mix, and proceeds from a
business interruption insurance claim which benefited the prior
year period.
Air and Liquid Processing
Sales for the Air and Liquid Processing segment for the three
months ended March 31, 2021, increased compared to the prior year
quarter primarily due to higher demand for centrifugal pumps,
offset in part by lower shipments of heat exchange coils. Operating
results for the three months ended March 31, 2021, was
approximately stable with the prior year quarter.
Teleconference Access
Ampco-Pittsburgh Corporation (NYSE: AP) will hold a conference
call on Friday, May 7, 2021, at 10:30 a.m. Eastern Time (ET) to
discuss its financial results for the first quarter ended March 31,
2021. 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/10155009/e6e2c11973. 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 industry. It also manufactures open-die forged
products that principally are sold 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, Slovenia, and participates in three
operating joint ventures located in China. It has sales offices in
North and South America, Asia, Europe, and the Middle East.
Corporate headquarters is located in Carnegie, Pennsylvania.
Non-GAAP Financial
Measures
The Corporation presents non-GAAP adjusted income from
operations as a supplemental financial measure to GAAP financial
measures regarding the Corporation’s operational performance. This
non-GAAP financial measure excludes unusual items affecting
comparability, as described more fully in the footnotes to the
attached “Non-GAAP Financial Measures Reconciliation Schedule,”
including the proceeds from a business interruption insurance
claim, which the Corporation believes is not indicative of its core
operating results. A reconciliation of this non-GAAP financial
measure to income from operations, the most directly comparable
GAAP financial measure, is provided below under “Non-GAAP Financial
Measures Reconciliation Schedule.”
The Corporation has presented non-GAAP adjusted income from
operations because it is a key measure used by the Corporation’s
management and Board of Directors to understand and evaluate the
Corporation’s operating performance and to develop operational
goals for managing the business. Management believes this non-GAAP
financial measure provides useful information to investors and
others in understanding and evaluating the operating results of the
Corporation, enhancing the overall understanding of the
Corporation’s past performance and future prospects, and allowing
for greater transparency with respect to key financial metrics used
by management in its financial and operational decision-making.
Non-GAAP adjusted income from operations should be used only as a
supplement to GAAP information, in conjunction with the
Corporation’s condensed consolidated financial statements prepared
in accordance with GAAP, and should not be considered in isolation
of, or as an alternative to, measures prepared in accordance with
GAAP. There are limitations related to the use of non-GAAP adjusted
income from operations rather than GAAP income from operations.
Forward-Looking
Statements
The Private Securities Litigation Reform Act of 1995 (the “Act”)
provides a safe harbor for forward-looking statements made by or on
behalf of Ampco-Pittsburgh Corporation (the “Corporation”). This
press release may include, but is not limited to, statements about
operating performance, trends, 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,
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 or shortages of key production materials;
consequences of global pandemics (including COVID-19); changes in
the existing regulatory environment; new trade restrictions and
regulatory burdens associated with “Brexit”; inability of the
Corporation to successfully restructure its operations; limitations
in availability of capital to fund the Corporation’s operations and
strategic plan; inoperability of certain equipment on which the
Corporation relies; work stoppage or another industrial action on
the part of any of the Corporation’s unions; liability of the
Corporation’s subsidiaries for claims alleging personal injury from
exposure to asbestos-containing components historically used in
certain products of those subsidiaries; inability to satisfy the
continued listing requirements of the New York Stock Exchange or
NYSE American; failure to maintain an effective system of internal
control; potential attacks on information technology infrastructure
and other cyber-based business disruptions; 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. 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 March 31,
2021
2020
Net sales
$
86,800
$
91,063
Costs of products sold (excl. depreciation
and amortization)
69,588
70,160
Selling and administrative
11,558
11,830
Depreciation and amortization
4,743
4,699
Loss on disposal of assets
4
23
Total operating expenses
85,893
86,712
Income from operations
907
4,351
Other income (expense):
Investment-related income
18
4
Interest expense
(895
)
(1,216
)
Other – net
665
(1,320
)
Total other income (expense) – net
(212
)
(2,532
)
Income before income taxes
695
1,819
Income tax (provision) benefit
(381
)
2,783
Net income
314
4,602
Less: Net income attributable to
noncontrolling interest
147
460
Net income attributable to
Ampco-Pittsburgh
$
167
$
4,142
Net income per share attributable to
Ampco-Pittsburgh
common shareholders:
Basic
$
0.01
$
0.33
Diluted
$
0.01
$
0.33
Weighted-average number of common
shares
outstanding:
Basic
18,637
12,656
Diluted
20,669
12,672
AMPCO-PITTSBURGH CORPORATION SEGMENT
INFORMATION (in thousands)
Three
Months Ended March 31,
2021
2020
Net Sales:
Forged and Cast Engineered Products
$
63,351
$
68,764
Air and Liquid Processing
23,449
22,299
Consolidated
$
86,800
$
91,063
Income from Operations:
Forged and Cast Engineered Products
$
1,846
$
4,556
Air and Liquid Processing
2,312
2,584
Corporate costs
(3,251
)
(2,789
)
Consolidated
$
907
$
4,351
AMPCO-PITTSBURGH CORPORATION NON-GAAP
FINANCIAL MEASURES RECONCILIATION SCHEDULE (in thousands)
As described under “Non-GAAP Financial Measures” above, the
Corporation presents non-GAAP adjusted income from operations as a
supplemental financial measure to GAAP financial measures. The
following is a reconciliation of income from operations, the most
directly comparable GAAP financial measure, to this non-GAAP
financial measure for the three months ended March 31, 2021, and
2020:
Three
Months Ended March 31,
2021
2020
Income from operations, as reported
(GAAP)
$
907
$
4,351
Proceeds from Business Interruption
Insurance Claim (1)
-
(769
)
Income from operations, as adjusted
(Non-GAAP)
$
907
$
3,582
(1)
Represents business interruption
insurance proceeds received for equipment outages that occurred in
2018.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210507005333/en/
Michael G. McAuley Senior Vice President, Chief Financial
Officer and Treasurer (412) 429-2472 mmcauley@ampcopgh.com
Ampco Pittsburgh (NYSE:AP)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Ampco Pittsburgh (NYSE:AP)
Historical Stock Chart
Von Jul 2023 bis Jul 2024