Ampco-Pittsburgh Subsidiaries to Increase Price on Forged and Cast Rolls
June 13 2016 - 8:10AM
Business Wire
Ampco-Pittsburgh Corporation (NYSE: AP) announced today that its
subsidiary, Union Electric Steel Corporation (“Union Electric
Steel”), will raise prices on forged and cast roll products that it
and its subsidiaries produce globally. These subsidiaries include
the recently acquired companies formerly comprising the Åkers Group
(“Åkers”). This increase is effective July 1, 2016, or as relevant
contract terms permit.
For more than five years, Union Electric Steel’s customers in
the steel industry faced challenging market conditions, including
severe pricing pressure on their products. Union Electric Steel,
including Åkers, supported the industry throughout this difficult
period by agreeing to price concessions on forged and cast rolls.
The compounding effect of these annual roll price decreases has had
a significant adverse effect on Union Electric Steel’s financial
performance.
Commenting on the announcement, Rodney Scagline, President of
Union Electric Steel, stated, “In 2016, global steel prices have
reportedly increased by approximately 25% which, we believe, should
have a positive effect on steel manufacturers’ financial results.
The modest price increase that we are announcing today is intended
to begin the recovery process for our roll business, and place
Union Electric Steel on a path to profitability. Pricing will be
determined on a by-product basis for both forged and cast roll
products, but should average five percent.”
About Ampco-Pittsburgh Corporation
Ampco-Pittsburgh Corporation, through its operating
subsidiaries, is a leading producer of forged and cast rolls for
the worldwide steel and aluminum industries as well as ingot and
open die forged products for the oil and gas, aluminum, and plastic
extrusion industries. It 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. Ampco-Pittsburgh Corporation operates manufacturing
facilities in the United States, United Kingdom, Sweden,
Slovenia, and China. Sales offices are located in North and South
America, Asia, Europe, and the Middle East. Corporate headquarters
is located in Carnegie, Pennsylvania.
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and may include, but are not limited to,
statements about sales levels, restructuring, profitability and
anticipated synergies, expenses and cash outflows. All
forward-looking statements involve risks and uncertainties. All
statements contained herein that are not clearly historical in
nature are forward-looking, and words such as "believe,"
"anticipate," "expect," "estimate," "may," "will," "should,"
"continue," "plans," "intends," "likely," or other similar words or
phrases are generally intended to identify forward-looking
statements. Any forward-looking statement contained herein, in
other press releases, written statements or documents filed with
the Securities and Exchange Commission, or in Ampco-Pittsburgh
Corporation communications with and discussions with investors and
analysts in the normal course of business through meetings, phone
calls and conference calls, regarding expectations with respect to
sales, earnings, cash flows, operating efficiencies, product
introduction or expansion, the benefits of acquisitions and
divestitures or other matters as well as financings and repurchases
of debt or equity securities, are subject to known and unknown
risks, uncertainties and contingencies. Many of these risks,
uncertainties and contingencies are beyond our control, and may
cause actual results, performance or achievements to differ
materially from anticipated results, performance or achievements.
Factors that might affect such forward-looking statements, include,
among other things general economic and business conditions, demand
for Ampco-Pittsburgh’s goods and services, competitive conditions,
interest rate and foreign currency rate fluctuations, availability
of key raw materials and unfavorable resolution of claims against
the Corporation, as well as those discussed more fully elsewhere in
this release and in documents filed with the Securities and
Exchange Commission by Ampco-Pittsburgh, particularly our latest
annual report on Form 10-K and subsequent filings. Any
forward-looking statements in this release speak only as of the
date of this release, and we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
that date or to reflect the occurrence of unanticipated events.
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version on businesswire.com: http://www.businesswire.com/news/home/20160613005685/en/
Ampco-Pittsburgh CorporationMelanie L. Sprowson,
412-429-2454Director, Investor Relationsmsprowson@ampcopgh.com
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