Ampco-Pittsburgh Corporation (NYSE: AP) reported sales for the
three and nine months ended September 30, 2017, of $103.9 million
and $318.0 million, respectively, compared to $82.9 million and
$239.7 million, respectively, for the three and nine months ended
September 30, 2016. The current year periods include sales of $8.1
million and $36.4 million, respectively, associated with the
November 2016 acquisition of ASW Steel Inc. (“ASW”). In addition,
the Corporation experienced higher sales of forged engineered
products for the oil and gas industry and, for the nine months
ended, higher sales of mill rolls compared to the prior year
periods.
Loss from operations for three and nine months ended September
30, 2017, was $3.2 million and $7.6 million, respectively, compared
to loss from operations of $4.9 million and $14.8 million for the
respective prior year periods. Net loss for the three and nine
months ended September 30, 2017, was $2.2 million or $0.18 per
common share and $8.9 million or $0.72 per common share,
respectively. This compares to net loss for the comparable prior
year periods of $27.4 million or $2.23 per common share and $36.8
million or $3.10 per common share. The prior year quarter included
the impact of establishing a $26.9 million valuation allowance
against certain of the Corporation’s deferred income tax assets,
which impacted net loss per common share by $2.19.
Sales for the Forged and Cast Engineered Products segment for
the three and nine months ended September 30, 2017, rose 30% and
43%, respectively, compared to prior year. For Q3 2017, higher
sales of forged engineered products for the oil and gas industry
and sales from the acquired ASW accounted for the majority of the
increase. For September year to date, the sales increase was led by
the acquisition effect of ASW, higher sales of forged and cast mill
rolls, and higher sales for forged engineered products for the oil
and gas industry. The segment recorded modest operating losses for
both the three and nine months ended September 30, 2017, as higher
operating and raw material costs and lower absorption from the
idling of a cast roll foundry were only partly offset by the impact
of higher sales volumes and roll pricing. This compares to larger
operating losses in the prior year periods, which reflected
comparatively lower sales volumes, lower pricing, lower absorption
of plant capacity and unfavorable purchase accounting effects
associated with the Åkers Group acquisition.
Third quarter sales for the Air and Liquid Processing segment
increased 11% from prior year, as higher shipment volumes of custom
air handlers and heat exchange coils more than offset lower volumes
of centrifugal pumps. For the nine months ended September 30, 2017,
segment sales increased 4%, led by increased shipment volumes of
custom air handlers and centrifugal pumps. As a result, operating
income in both the third quarter and year-to-date rose modestly
compared to prior year.
Remarking on the quarter, John Stanik, Ampco-Pittsburgh’s Chief
Executive Officer said, “We are disappointed in our Q3 performance.
Extended plant downtime due to maintenance issues and production
bottlenecks associated with our ramp-up to meet significantly
higher volumes negatively impacted our results. We are addressing
these issues as quickly as possible to meet simultaneously
increasing demand for both roll products and fracking blocks.”
Teleconference Access
Ampco-Pittsburgh Corporation (NYSE: AP) will hold a conference
call on Monday, November 6, 2017, at 10:30 a.m. Eastern Time (ET)
to discuss its financial results for the third quarter ended
September 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/10113284
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
September 30,
Nine Months Ended
September 30,
2017
2016
2017
2016
Sales
$ 103,886
$ 82,861 $
317,952 $ 239,740
Cost of products sold (excl depreciation and
amortization) 87,295 67,267 263,975 195,824 Selling and
administrative 14,243 15,045 44,444 43,740 Depreciation and
amortization 5,451 5,490 17,019 14,945 Loss (gain) on disposal of
assets
110 -
109 (9
) Total operating expense
107,099
87,802
325,547 254,500
Loss from operations (3,213 ) (4,941 ) (7,595 )
(14,760 ) Other expense – net
(494
) (1,001 )
(3,025 ) (635
) Loss before income taxes (3,707 ) (5,942 )
(10,620 ) (15,395 ) Income tax benefit (provision) 1,804 (21,602 )
1,771 (21,627 ) Equity earnings in Chinese joint venture
- 4
535 115 Net loss
before non-controlling interest (1,903 ) (27,540 ) (8,314 ) (36,907
) Net income (loss) attributable to non-controlling interest
299 (158 )
584 (149
) Net loss
$ (2,202
) $ (27,382 )
$ (8,898 ) $
(36,758 ) Loss per common share:
Basic
$ (0.18 )
$ (2.23 ) $
(0.72 ) $ (3.10
) Diluted
$ (0.18
) $ (2.23 )
$ (0.72 ) $
(3.10 ) Weighted-average number of
common shares outstanding: Basic
12,361
12,271 12,320
11,844 Diluted
12,361 12,271
12,320 11,844
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171106005769/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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