Ampco-Pittsburgh Corporation (NYSE: AP) Reports First Quarter 2022 Results


CARNEGIE, Pa.–(BUSINESS WIRE)–Ampco-Pittsburgh Corporation (NYSE: AP) (“Ampco-Pittsburgh” or the “Company”) reported total net sales of $94.4 million for the quarter ended March 31, 2022, compared to 86.8 million for the three months ended March 31, 2021. The increase is primarily attributable to higher sales in the engineered forged and cast products segment due to higher prices and surcharges passed on to customers due to rising raw material, energy and transportation costs; and higher volume of engineered forgings shipments to the steel distribution and oil and gas markets. This increase was partially offset by lower sales in the Air and Liquid Handling segment resulting from supply chain issues affecting the availability of components for production and delivery times to customers.

Commenting on the quarter, Ampco-Pittsburgh CEO Brett McBrayer said, “We successfully implemented price increases and expanded supplement coverage in the Forged and Cast Engineered Products segment to address not only to the escalation of commodity prices, but also to natural gas, electricity and transportation. for a large majority of our contracts, which helped restore margins. Although we and our customers are adversely affected, like most manufacturers, by supply chain issues affecting parts availability and delivery times, we continue to focus on the controllable elements of our costs. We are pleased with the acceleration in backlog growth in both segments.

Operating profit for the three months ended March 31, 2022 was $1.2 million compared to $0.9 million for the three months ended March 31, 2021. The increase primarily reflects a change in certain employee benefits, which increased operating profit for the current quarter. quarter of the fiscal year of $1.4 million, partially offset by the impact of unfavorable manufacturing variances due to lower production levels, higher raw material, energy and transportation exceeding late customer impacts and lower volume rolling rolls, centrifugal pump and custom air carrier shipments.

Other – marked improvement from a year ago, mainly due to foreign exchange gains recorded in the current year quarter compared to losses in the prior year quarter.

Net income was $1.6 million, or $0.08 per diluted share, for the three months ended March 31, 2022, compared to $0.2 million, or $0.01 per diluted share, for the quarter ended March 31, 2021.

Mr. McBrayer continued, “While the conflict in Eastern Europe has exacerbated energy cost inflation, particularly for our European facilities, the coverage of natural gas and electricity surcharges should help mitigate this headwind in our roller business.

Access to the conference call

Ampco-Pittsburgh Corporation will host a conference call on Tuesday, May 10, 2022 at 10:30 a.m. Eastern Time (ET) to discuss its financial results for the first quarter ended March 31, 2022. The Company encourages participants to pre-register at any time, including up to and after the call start time via this link: https://dpregister.com/sreg/10166283/f2700110fd. Those who do not have internet access or cannot pre-register should log in at least five minutes before the start time using:

  • Participant call (toll-free): 1-844-308-3408

  • International participant call: 1-412-317-5408

For those unable to tune in to the live stream, a replay will be available one hour after the end of the event on the Company’s website under the Investors menu at www.ampcopgh.com.

About Ampco-Pittsburgh Corporation

Ampco-Pittsburgh Corporation manufactures and sells high-tech, high-performance specialty metal products and custom equipment used by industry worldwide. Through its operating subsidiary, Union Electric Steel Corporation, it is a leading producer of forged and cast rollers for the global steel and aluminum industries. It also manufactures open-die forged products that are sold primarily to customers in the steel distribution market, the oil and gas industry, and the aluminum and plastic extrusion industries. The Company is also a producer of air and liquid handling equipment, primarily custom designed finned tube heat exchanger coils, large custom air handling systems and centrifugal pumps. . It operates manufacturing facilities in the United States, England, Sweden and Slovenia and participates in three operating joint ventures located in China. It has sales offices in North America, Asia, Europe and the Middle East. Headquarters are located in Carnegie, Pennsylvania.

Forward-looking statements

The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe harbor for forward-looking statements made by us or on behalf of the Company. This press release may include, but is not limited to, statements about operating performance, trends and events that the Company expects or anticipates in the future, statements about sales and production levels, restructurings, the impact of global pandemics (including COVID-19). 19), profitability and planned expenditures, inflation, global supply chain, future proceeds from the exercise of outstanding warrants and cash outflows. All statements contained herein other than statements of historical facts are, or could be, considered “forward-looking statements” within the meaning of the Act and words such as “may”, “will”, “intend “, “believe”, “expect”, “anticipate”, “estimate”, “project”, “forecast”, and other terms of similar meaning which indicate future events and trends are also generally intended to identify forward-looking statements. Forward-looking statements speak only as of the date such statements are made, are not guarantees of future performance or expectations, and involve risks and uncertainties. For the Company, these risks and uncertainties include, but are not limited to, cyclical product demand and economic downturns; global excess capacity in the steel industry; fluctuations in the value of the US dollar against other currencies; increases in commodity prices, reductions in electricity and natural gas supplies or shortages of key production materials; limits on the availability of capital to fund our operations and our strategic plan; the inability to maintain adequate liquidity to meet our operating cash flow needs, repay maturing debt and meet other financial obligations; the inability to obtain the necessary capital or financing on satisfactory terms to acquire the capital expenditures that may be necessary to support our growth strategy; the inoperability of certain equipment on which we rely; the liability of our subsidiaries for claims alleging personal injury resulting from exposure to asbestos-containing components historically used in certain products of our subsidiaries; changes in the existing regulatory environment; the inability to successfully restructure our operations; consequences of global pandemics (including COVID-19); work stoppage or other industrial action by one of our unions; failure to meet the continuous listing requirements of the New York Stock Exchange or the NYSE American Exchange; potential attacks on information technology infrastructure and other cybersecurity-related business disruptions; failure to maintain an effective system of internal controls; disruption caused by hostilities, including disruption caused by hostilities in Ukraine; and those discussed in more detail elsewhere in this report and in the documents filed with the Securities and Exchange Commission by the Company, in particular in point 1A, Risk factors, in Part I of the company’s most recent Annual Report on Form 10-K and in Part II of its most recent Quarterly Report on Form 10-Q. The Company cannot guarantee any future results, level of activity, performance or achievement. In addition, there may be future events that the Company may not be able to accurately predict or control, which could cause actual results to differ materially from the expectations expressed or implied by the forward-looking statements. . Except as required by applicable law, the Company undertakes no obligation, and disclaims 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 completed

March, 31st,

2022

2021

Net sales

$

94,426

$

86,800

Cost of goods sold (excluding depreciation and impairment)

78,820

69,588

Commercial and administrative

9,878

11,558

Depreciation and amortization

4,487

4,743

(Gain) loss on disposal of assets

(2

)

4

Total operating expenses

93 183

85,893

Income from operations

1,243

907

Other income (expenses):

Investment-related income

4

18

Interest expense

(994

)

(895

)

Other – net

1,412

665

Total other income (expenses) – net

422

(212

)

income before taxes

1,665

695

Provision for income tax

(56

)

(381

)

Net revenue

1,609

314

Less: Net income (loss) attributable to non-controlling interests

(36

)

147

Net income attributable to Ampco-Pittsburgh

$

1,645

$

167

Net earnings per share attributable to Ampco-Pittsburgh

ordinary shareholders:

Basic

$

0.09

$

0.01

Diluted

$

0.08

$

0.01

Weighted average number of ordinary shares

exceptional:

Basic

19,188

18,637

Diluted

19,483

20,669

AMPCO-PITTSBURGH CORPORATION

SEGMENT INFORMATION

(in thousands)

Quarter ended March 31

2022

2021

Net sales:

Forged and Cast Engineered Products

$

74,759

$

63,351

Air and liquid treatment

19,667

23,449

Consolidated

$

94,426

$

86,800

Income from operations:

Forged and Cast Engineered Products

$

1,298

$

1,846

Air and liquid treatment

2,661

2,312

Business fees

(2,716

)

(3,251

)

Consolidated

$

1,243

$

907

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