Q2 2024 Ampco-Pittsburgh Corp Earnings Call Transcript
Key Points
- Ampco-Pittsburgh Corp (AP) reported strong sequential earnings improvement in Q2 2024, with income from operations rising to $5 million from $1.4 million in the same quarter of the previous year.
- The Air and Liquid Systems segment achieved record revenue and bookings, driven by increased shipments of custom air handling units and strong demand in the pharmaceutical and US Navy markets.
- The company has completed the installation of new equipment in its Buffalo pumps facility, which is expected to raise manufacturing capacity and increase efficiencies.
- Net income for Q2 2024 was $2 million, or $0.1 per diluted share, compared to $1 million, or $0.02 per share, in Q2 2023.
- Ampco-Pittsburgh Corp (AP) has reduced its selling and administrative expenses as a percentage of net sales, from 13.1% in Q2 2023 to 12.2% in Q2 2024, primarily due to lower commissions and professional services.
- The Forged and Cast Engineered Products segment saw a slight decrease in net sales, from $77.6 million in Q2 2023 to $75.7 million in Q2 2024, primarily due to lower Castrol shipments.
- The company's backlog decreased by approximately $16.1 million from December 31, 2023, due to the timing of 2025 orders from some customers.
- Interest expense increased by $0.8 million compared to the prior year, primarily due to higher equipment financing debt and higher average interest rates.
- The European steel market continues to face pricing and volume pressures, with lower utilization levels among producers.
- The company anticipates a weaker performance in Q3 2024 for the Forged and Cast Engineered Products segment due to scheduled shutdown periods for European and US operations.
Good morning, everyone, and welcome to the Ampco-Pittsburgh Corporation second quarter 2024 earnings results conference call. (Operator Instructions) Also note, today's event is being recorded. At this time, I'd like to turn the floor over to Kim Knox, Corporate Secretary. Please go ahead.
Thank you, Jamie, and good morning to everyone joining us on today's second quarter 2024 conference call. Joining me today are Brett McBrayer, our Chief Executive Officer, and Mike McAuley, Senior Vice President, Chief Financial Officer and Treasurer. Also joining us on the call today are Sam Lyon, President of Union Electric Steel Corporation, and Dave Anderson, President of Air and Liquid Systems Corporation.
Before we begin, I would like to remind everyone that participants on this call may make statements or comments that are forward-looking and may include financial projections or other statements of the corporation's plans, objectives, expectations or intentions.
These matters involve certain risks
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