In This Article:
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Operating Income: $1.9 million for Q3 2024 and $7 million for the nine-month period.
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Net Sales: $96.2 million for Q3 2024, a decline of 5.9% compared to Q3 2023.
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Net Loss: $2 million or $0.10 per diluted share for Q3 2024.
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Forged and Cast Engineered Products Segment Sales: $67.2 million for Q3 2024, down from $73.6 million in Q3 2023.
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Forged and Cast Engineered Products Segment Income: $2.5 million for Q3 2024, up from $1.4 million in Q3 2023.
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Air & Liquid Processing Segment Revenue: Consistent with prior year for Q3, with a year-to-date increase of 13%.
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Interest Expense: Approximately $3 million for Q3 2024, up by $0.5 million from Q3 2023.
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Total Backlog: $383.6 million as of September 30, 2024, an increase of approximately $4.6 million from December 31, 2023.
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Net Cash Flows from Operating Activities: $10.6 million for the nine months ended September 30, 2024.
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Capital Expenditures: $2.9 million for Q3 2024, or $2.4 million net of government grant funding.
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Cash on Hand: $11.8 million as of September 30, 2024.
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Undrawn Credit Facility Availability: $20.5 million as of September 30, 2024.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ampco-Pittsburgh Corp (NYSE:AP) reported operating income of $1.9 million for Q3 2024, indicating improved margins and operating efficiencies.
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The backlog increased for the quarter, with significant orders from the pharmaceutical market and the US Navy, positioning the company for future growth.
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Air & Liquid Systems Corporation saw a 13% year-to-date revenue increase, driven by increased shipments and additional manufacturing capacity.
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Recent capital investments in the Forged and Cast Engineered Products segment have led to improved operational efficiencies and pricing strategies.
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The company is poised to benefit from the reopening of US nuclear plants and increased demand in the nuclear market, particularly for heat exchangers.
Negative Points
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Net sales for Q3 2024 declined by 5.9% compared to the same period in 2023, primarily due to lower shipment volumes and surcharge pass-through revenues.
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The company reported a net loss of $2 million for Q3 2024, compared to a net income of $0.8 million in Q3 2023.
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Interest expenses increased by $0.5 million due to higher equipment financing debt and higher average interest rates.
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The income tax provision increased due to a valuation allowance on the net deferred tax assets of the UK operations, impacting the overall tax benefits.
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Market conditions remain challenging, with European and North American steel producers operating below pre-pandemic levels due to economic uncertainties and increased imports from China.