Ampco-Pittsburgh Corporation (NYSE: AP) reported sales of
$63,578,000 for the three months ended March 31, 2016 compared to
$65,087,000 for the three months ended March 31, 2015. For the
first quarter of 2016, the Corporation incurred an operating loss
of $4,963,000, including pre-tax transaction-related costs of
approximately $1,800,000 and pre-tax purchase accounting impacts of
approximately $1,600,000 associated with the acquisition of Åkers
AB and certain of its affiliated companies (“Åkers”) consummated on
March 3, 2016. For the same period of the prior year, operating
income approximated $502,000, which included a pre-tax curtailment
charge of approximately $1,217,000 associated with a partial
freezing of the U.S. defined benefit plan and benefited from a
pre-tax credit of approximately $750,000 relating to the collection
of accounts receivable previously written off. For the three months
ended March 31, 2016, the Corporation incurred a net loss of
$2,890,000 or $0.26 per common share which includes the after-tax
impact of both transaction-related costs and purchase accounting of
approximately $2,807,000 or $0.26 per common share. For the three
months ended March 31, 2015, the Corporation earned net income of
$72,000 or $0.01 per common share and includes an after-tax impact
for the aforementioned curtailment charge and collection of
accounts receivable previously written off of approximately
$314,000 or $0.03 per common share.
Sales for the Forged and Cast Engineered Products segment for
the three months ended March 31, 2016 were slightly less than the
same period of the prior year and included $12,583,000 for the
newly acquired Åkers businesses. The addition of Åkers sales and a
modest improvement in Union Electric Steel forged roll sales offset
lower cast roll sales and an approximate $8,600,000 decline in the
volume of open-die forged shipments to the oil and gas industry.
The segment recorded an operating loss for the quarter led by the
inclusion of Åkers, including the effects of purchase accounting,
and the lower volume of open-die forged shipments.
Sales for the Air and Liquid Processing segment for the three
months ended March 31, 2016 were consistent with the prior year
quarter. Operating income improved, however, primarily due to a
higher volume of shipments for the air handling business and cost
containment efforts.
Corporate costs increased from the prior year primarily as a
result of the transaction-related costs associated with the Åkers
acquisition. Consolidated other income (expense) principally
benefited from foreign-exchange gains during the quarter compared
to foreign-exchange losses a year ago. The Corporation’s effective
tax rate for the three months ended March 31, 2016 approximated
21.3% in comparison to 32.7% for the three months ended March 31,
2015. The decrease principally is due to the change in the
geographic mix of earnings.
Commenting on the quarter, John Stanik, Ampco-Pittsburgh’s Chief
Executive Officer said, “In light of the current state of the
industries we serve, we are pleased with the performance of our
forged roll business and the improved contribution from our Air and
Liquid Processing segment. With the Åkers acquisition, we took
advantage of an opportunity to build upon our market position, but
the sudden weakness in the overall European cast roll market has
been disappointing. Our immediate focus now is to integrate the
acquired businesses and capture synergies to fully leverage our
combined potential.”
Teleconference Access
Ampco-Pittsburgh will conduct a teleconference to discuss the
first quarter earnings as described in this News Release on Friday,
May 6, 2016, at 10:30 a.m. Eastern Daylight Time. The call will be
broadcast live over the Internet and can be accessed from the
“Investors” tab on the Corporation’s website, www.ampcopgh.com.
Those wishing to participate in the call can register at
www.ampcopgh.com, or by phone at 1-877-267-7197, shortly before the
scheduled start time. The conference ID is: 98013447. The call
replay will be available on the website through 12:00 a.m., Friday,
May 20, 2016.
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
Three Months Ended March 31, 2016 2015
Sales
$ 63,578,000 $
65,087,000 Cost of products sold (excl.
depreciation) 51,105,000 52,044,000 Selling and administrative
13,508,000 9,396,000 Depreciation and amortization 3,925,000
3,142,000 Loss on disposal of assets
3,000
3,000 Total operating expense
68,541,000
64,585,000 (Loss) income from operations
(4,963,000 ) 502,000 Other income (expense) – net
967,000 (380,000
) (Loss) income before income taxes (3,996,000
) 122,000 Income tax benefit (provision) 850,000 (40,000 ) Equity
earnings in Chinese joint venture
172,000
(10,000 ) Net (loss)
income before non-controlling interests (2,974,000 ) 72,000 Net
loss attributable to non-controlling interests
84,000 - Net (loss)
income
$ (2,890,000 )
$ 72,000 Earnings per
common share: Basic
$ (0.26
) $ 0.01 Diluted
$ (0.26 ) $
0.01
Weighted-average number of common shares
outstanding:
Basic
11,006,145
10,425,664 Diluted
11,006,145 10,464,088
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version on businesswire.com: http://www.businesswire.com/news/home/20160505006766/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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