Ampco-Pittsburgh Corporation Announces Third Quarter 2016 Results

Ampco-Pittsburgh Corporation (NYSE: AP) reported consolidated sales for the three and nine months ended September 30, 2016 of $82,861,000 and $239,740,000, respectively, compared to $58,094,000 and $183,154,000, respectively, for the three and nine months ended September 30, 2015. The current year periods include sales of $33,679,000 and $86,703,000 attributable to the March 3, 2016 acquisition of Åkers AB and certain of its affiliated companies ("Åkers"). The Corporation reported a loss from operations of $4,941,000 and $14,760,000 for the three and nine months ended September 30, 2016, respectively, compared to a loss from operations of $2,357,000 and $2,661,000 for the same periods of the prior year. The year-to-date operating loss includes certain purchase accounting adjustments and acquisition-related costs of approximately $6,500,000.

During the three and nine month periods ended September 30, 2016, the Corporation established valuation allowances of $22,620,000 and $24,039,000, respectively, against certain of its deferred income tax assets which impacted net loss per common share by $1.84 and $2.03, respectively. The valuation allowances resulted from the Corporation having incurred three years of cumulative losses, inclusive of the acquired Åkers businesses, limiting our ability to consider other subjective evidence to recognize the existing deferred tax assets. If and when the Corporation returns to a sustained level of profitability sufficient to conclude that it is more likely than not that deferred tax assets are realizable, we will reduce the valuation allowance accordingly.

Net loss for the three and nine months ended September 30, 2016 was $23,099,000 and $32,475,000, respectively, compared to a net loss for the three and nine months ended September 30, 2015 of $1,511,000 and $1,959,000. Loss per common share for the three months ended September 30, 2016 was $1.88, which includes the $1.84 non-cash tax valuation allowance impact.

Sales for the Forged and Cast Engineered Products segment for the three and nine months ended September 30, 2016 increased 74% and 51%, respectively, from the same periods of the prior year principally from the inclusion of the acquired Åkers businesses, offset in part by a decline in legacy roll and other forged engineered product sales volumes. The operating loss for the three and nine months ended September 30, 2016 increased when compared to the three and nine months ended September 30, 2015 primarily due to the impact of the addition of Åkers, including restructuring costs, and lower legacy cast roll business volumes. The operating loss for the nine months ended September 30, 2016 also includes the effect of purchase accounting for Åkers.

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