Ampco-Pittsburgh Corporation (NYSE: AP) reported sales for the
three and six months ended June 30, 2016 of $93,301,000 and
$156,879,000, respectively, compared to $59,973,000 and
$125,060,000, respectively, for the three and six months ended June
30, 2015. The current year periods include sales of $40,441,000 and
$53,024,000, respectively, for the three and six months ended June
30, 2016, associated with the March 3, 2016, acquisition of Åkers
AB and certain of its affiliated companies (“Åkers”). The
Corporation reported a loss from operations of $4,856,000 and
$9,819,000, respectively, for the three and six months ended June
30, 2016, compared to a loss from operations of $806,000 and
$304,000 for the comparable prior year periods. The current year
operating loss includes unfavorable pre-tax purchase accounting,
transaction-related and other acquisition-related costs of
approximately $3,000,000 and $6,400,000 for the three and six
months ended June 30, 2016, respectively, related to the Åkers
acquisition. Net loss for the three and six months ended June 30,
2016, was $6,486,000 or $0.53 per common share and $9,376,000 or
$0.81 per common share, respectively. Net loss for the three and
six months ended June 30, 2015, equaled $520,000 or $0.05 per
common share and $448,000 or $0.04, respectively. The income tax
provision for the current year periods includes full valuation
allowances recorded against the net deferred tax assets of certain
of our international operations.
Sales for the Forged and Cast Engineered Products segment for
the three months ended June 30, 2016, nearly doubled the prior year
level with the inclusion of the acquired Åkers businesses, offset,
in part, by a lower volume of European cast roll shipments.
Additionally, forged roll sales improved from a year ago, but this
increase was largely offset by a decline in the volume of open-die
forged shipments to the oil and gas industry. The segment recorded
an operating loss for the quarter ended June 30, 2016, driven
primarily by the inclusion of Åkers, including the unfavorable
effects of purchase accounting and acquisition-related costs. Sales
for the six months ended June 30, 2016, were substantially higher
than the prior year period, driven by the inclusion of the Åkers
acquisition, which more than offset sales volume declines in the
legacy roll businesses and a decline in forged engineered product
shipments to the oil and gas industry. The segment recorded an
operating loss for the six months ended June 30, 2016, compared to
a modest operating income for prior year period, led primarily by
purchase accounting impacts related to the Åkers acquisition and
the aforementioned sales volume declines.
Sales for the Air and Liquid Processing segment for the three
months ended June 2016 were slightly below prior year, driven
principally by lower heat exchanger coil shipments to the
coal-fired power generation market. Operating income declined
slightly on lower volumes. For the six months ended June 30, 2016,
although sales were comparable to prior year levels, operating
income was higher, primarily related to the curtailment charge
recorded in the first quarter of 2015 associated with the partial
freezing of the U.S. Defined Benefit Plan.
Compared to the second quarter of 2015, Other Income (Expense)
for the second quarter of 2016 included dividend income from a
minority-owned Chinese joint venture. This was offset by higher
interest expense related primarily to the Åkers acquisition and a
foreign exchange loss in the current quarter, compared to a modest
foreign exchange gain in the prior year quarter given the stronger
U.S. dollar. For the year-to-date period, Other Income (Expense)
was favorable compared to prior year as net foreign exchange gains
and the current year dividend income more than offset the higher
interest expense.
Commenting on the quarter, John Stanik, Ampco-Pittsburgh’s Chief
Executive Officer said, “Beneath the acquisition-related accounting
effects and non-operational items in our results, I am encouraged
by the sequential sales and earnings improvement in our Forged and
Cast Engineered Products segment, as well as the continued
stability in our Air and Liquid Processing segment. We have made
progress in the integration of the Åkers businesses and capturing
synergies. Additionally, most of the purchase accounting and
acquisition-related impacts to income will be behind us moving
forward. I am also encouraged by improving conditions in the steel
industry in general.”
Teleconference Access
Ampco-Pittsburgh will conduct a teleconference to discuss the
second quarter earnings as described in this News Release on
Wednesday, August 3, 2016, at 10:30 a.m. Eastern Time (ET). The
call will be broadcast live over the internet and can be accessed
from the Investors menu 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 at
least five minutes before the scheduled start time. The conference
ID is: 49553018.
For those unable to listen to the live broadcast, a replay will
be available four hours 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
Three Months Ended
June 30,
Six Months Ended
June 30,
2016
2015
2016
2015
Sales
$ 93,301,000
$ 59,973,000 $
156,879,000 $
125,060,000
Cost of products sold (excl depreciation
and amortization)
77,452,000 48,197,000 128,557,000 100,241,000 Selling and
administrative 15,187,000 9,175,000 28,695,000 18,571,000
Depreciation and amortization 5,530,000 3,089,000 9,455,000
6,231,000 (Gain) loss on disposal of assets
(12,000 ) 318,000
(9,000 )
321,000 Total operating expense
98,157,000 60,779,000
166,698,000
125,364,000 Loss from operations
(4,856,000 ) (806,000 ) (9,819,000 ) (304,000 ) Other (expense)
income – net
(601,000 )
171,000 366,000
(209,000 ) Loss before
income taxes (5,457,000 ) (635,000 ) (9,453,000 ) (513,000 ) Income
tax (provision) benefit (875,000 ) 233,000 (25,000 ) 193,000
Equity (loss) earnings in Chinese joint
venture
(61,000 )
(118,000 ) 111,000
(128,000 ) Net loss
before non-controlling interest (6,393,000 ) (520,000 ) (9,367,000
) (448,000 )
Net income attributable to non-controlling
interest
93,000 -
9,000 - Net
loss
$ (6,486,000 )
$ (520,000 ) $
(9,376,000 ) $
(448,000 ) Losses per common
share: Basic
$ (0.53 )
$ (0.05 ) $
(0.81 ) $ (0.04
) Diluted
$ (0.53
) $ (0.05 )
$ (0.81 ) $
(0.04 )
Weighted-average number of common shares
outstanding:
Basic
12,250,325
10,434,156 11,628,325
10,429,933 Diluted
12,250,325 10,434,156
11,628,325
10,429,933
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version on businesswire.com: http://www.businesswire.com/news/home/20160803005873/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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