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Ampco-Pittsburgh Announces Q3 2019 Results

Steel News - Published on Tue, 12 Nov 2019

Image Source: post-gazette.com
Ampco-Pittsburgh Corporation reported sales from continuing operations for the three and nine months ended September 30, 2019, of USD 90.9 million and USD 300.9 million, respectively, compared to USD 98.8 million and USD 323.6 million for the three and nine months ended September 30, 2018, respectively. The decline is principally attributable to lower sales of forged engineered products to the oil and gas industry.

Loss from continuing operations was USD 1.3 million and USD 14.0 million for the three and nine months ended September 30, 2019, respectively, compared to USD 2.8 million and USD 4.8 million for the comparable prior year periods. Loss from continuing operations for the current year-to-date period includes a first quarter impairment loss of USD 10.1 million associated with the then anticipated divestiture of the Corporation's Avonmore, PA cast roll manufacturing facility, higher professional fees associated with the Corporation's overall restructuring plan and employee severance due to reductions in force of USD 1.7 million, and expense of USD 1.4 million associated with a British cast roll customer who filed for bankruptcy during the second quarter.

Net loss from continuing operations for the three and nine months ended September 30, 2019, was USD 1.2 million or USD 0.10 per common share, and USD 14.0 million or USD 1.11 per common share, respectively, including the negative impact of the Impairment Charge, the Restructuring-Related Costs and the Bad Debt Expense of approximately USD 0.04 and USD 1.04 per common share, respectively. By comparison, net loss from continuing operations for the three and nine months ended September 30, 2018, was USD 3.0 million or USD 0.24 per common share, and USD 2.5 million or USD 0.20 per common share, respectively.

Sales for the Forged and Cast Engineered Products segment for the three and nine months ended September 30, 2019, declined 10% and 9%, respectively, compared to the prior year periods principally due to lower sales of forged engineered products to the oil and gas industry. Operating results for the three months ended September 30, 2019, improved from a year ago due to lower losses at Avonmore as operations were curtailed in anticipation of its sale, which was completed on September 30, 2019. Operating results for the nine months ended September 30, 2019, decreased by USD 9.3 million when compared to the same period of the prior year and include the Impairment Charge, certain restructuring-related costs and the Bad Debt Expense. Additionally, while the current year periods have been adversely impacted by the lower sales of forged engineered products, operating results benefited from better pricing for mill rolls, manufacturing efficiencies in the domestic forged operations and lower overhead costs.

Sales for the Air and Liquid Processing segment for the three and nine months ended September 30, 2019, were relatively comparable to prior year levels. Operating income decreased approximately 23% and 18% for the three and nine months ended September 30, 2019, compared to prior year levels due principally to a shift in product mix.

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Posted By : Rabi Wangkhem on Tue, 12 Nov 2019
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