Ampco-Pittsburgh Corporation (NYSE: AP) reported sales for the
three and nine months ended September 30, 2018, of $112.2 million
and $354.7 million, respectively, compared to $103.9 million and
$318.0 million, respectively, for the three and nine months ended
September 30, 2017. The increase is principally attributable to the
Forged and Cast Engineered Products segment.
Loss from operations for the three and nine months ended
September 30, 2018, was $6.7 million and $9.4 million,
respectively. This compares to a loss from operations of $3.2
million and $8.0 million, respectively, for the comparable prior
year periods.
Net loss for the three and nine months ended September 30, 2018,
was $7.0 million or $0.56 per common share, and $9.1 million or
$0.73 per common share, respectively. This compares to net loss for
the comparable prior year periods of $2.2 million or $0.18 per
common share, and $8.9 million or $0.72 per common share,
respectively.
Sales for the Forged and Cast Engineered Products segment for
the three and nine months ended September 30, 2018, increased 8%
and 13%, respectively, compared to the same periods of the prior
year. The current year periods benefited from higher sales of mill
rolls and forged engineered products. While sales of frac blocks
have declined for each of the periods, sales of other forged
engineered products, primarily within Canada, more than
compensated. Operating results for the three and nine months ended
September 30, 2018, declined compared to the same periods of the
prior year, principally due to results of the Corporation’s
Canadian subsidiary, ASW Steel Inc. (“ASW”). Despite a higher
overall volume of shipments and higher pricing, the segment
experienced the full-quarter effect of tariffs imposed by the
United States, effective June 1, 2018, on U.S. imports of steel
products from Canada. ASW further experienced the effect of
significantly lower contribution margin and higher unabsorbed costs
given the contraction in demand for ingot feedstock used in the
manufacture of frac blocks in the current quarter compared to prior
year quarter. In addition, segment results for the quarter were
negatively impacted by higher operating costs, including the impact
of equipment maintenance issues.
Sales and operating income for the Air and Liquid Processing
segment for the three and nine months ended September 30, 2018,
improved when compared to the same periods of the prior year due to
a higher volume of shipments and product mix.
Commenting on the quarter’s results, Brett McBrayer,
Ampco-Pittsburgh’s Chief Executive Officer said, “Sales for the
quarter hit the top end of our guidance and operating loss near the
middle of the range. The combined full-quarter effects of both the
tariffs on steel imports from our Canadian subsidiary and the
decline in the frac block market were major negative factors for us
in the quarter. Equipment reliability was also an issue, but now
that we have secured more than sufficient liquidity to prepare for
the early 2019 debt maturity, we are presently addressing certain
key equipment needs.
“As expressed in our November 1, 2018 press release, we have
begun a series of restructuring actions to realign our
manufacturing footprint and reduce cost. The magnitude of these
actions is expected to be significant. Our first round of
initiatives will continue throughout 2019; however, we anticipate
incremental improvements as each action unfolds.”
Teleconference Access
Ampco-Pittsburgh Corporation (NYSE: AP) will hold a conference
call on Thursday November 8, 2018, at 10:30 a.m. Eastern Time (ET)
to discuss its financial results for the third quarter ended
September 30, 2018. 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/10125436
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
Nine Months
Ended
September
30,
September
30,
2018
2017
2018
2017
Sales
$ 112,216
$ 103,886 $
354,720 $ 317,952
Cost of products sold (excl depreciation
and amortization)
98,408 87,346 301,741 264,179 Selling and administrative 14,512
14,218 44,799 44,648 Depreciation and amortization 5,683 5,451
17,357 17,019 Loss on disposal of assets
298
110 237
109 Total operating expense
118,901 107,125
364,134
325,955 Loss from operations (6,685 )
(3,239 ) (9,414 ) (8,003 ) Other income (expense) – net
1,029 (468 )
2,554 (2,617
) Loss before income taxes (5,656 ) (3,707 )
(6,860 ) (10,620 ) Income tax (provision) benefit (800 ) 1,804 (907
) 1,771 Equity income in joint venture
0
0 0
535 Net loss before non-controlling
interest (6,456 ) (1,903 ) (7,767 ) (8,314 )
Net income attributable to non-controlling
interest
583 299
1,325 584 Net
loss
$ (7,039 )
$ (2,202 ) $
(9,092 ) $
(8,898 ) Loss per common share:
Basic
$ (0.56 )
$ (0.18 ) $
(0.73 ) $ (0.72
) Diluted
$ (0.56
) $ (0.18 )
$ (0.73 ) $
(0.72 )
Weighted-average number of common shares
outstanding:
Basic
12,494 12,361
12,432 12,320
Diluted
12,494
12,361 12,432
12,320
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181108005509/en/
Ampco-Pittsburgh CorporationMichael G. McAuley,
412-429-2472Senior Vice President, Chief Financial Officer and
Treasurermmcauley@ampcopgh.com
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