Ampcopittsburgh Corp. has a market cap of $241.8 million; its shares were traded at around $23.6 with a P/E ratio of 7.4 and P/S ratio of 0.9. The dividend yield of Ampcopittsburgh Corp. stocks is 3%. Ampcopittsburgh Corp. had an annual average earning growth of 11.8% over the past 10 years.AP is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Net Sales. Net sales for the six months ended June 30, 2010 and 2009 were $165,184,000 and $160,734,000, respectively, and $82,858,000 and $74,979,000, respectively, for the three months then ended. Backlog approximated $422,408,000 at June 30, 2010 versus $501,311,000 as of December 31, 2009 and $567,304,000 as of June 30, 2009. A discussion of sales and backlog for the Corporation s two segments is included below.
Income from Operations. Income from operations for the six months ended June 30, 2010 and 2009 approximated $26,429,000 and $26,296,000, respectively, and $14,765,000 and $12,755,000 for the three months ended June 30, 2010 and 2009, respectively. A discussion of operating results for the Corporation s two segments is included below.
Forged and Cast Rolls. Sales and operating income for the six and three months ended June 30, 2010 exceeded the comparable prior year periods. The improvement is primarily volume related with shipments for both its domestic and international customers increasing, during the second quarter in particular, and more than offsetting the effects of lower revenues from the variable-index surcharge program and higher costs for direct materials. Backlog approximated $384,616,000 at June 30, 2010 against $468,500,000 as of December 31, 2009 and $524,162,000 as of June 30, 2009. The decline is a result of shipments outpacing new orders. With existing orders in backlog extending multiple years and excess inventories on hand at certain customer locations, it is unlikely that backlog will reach the record highs of earlier years in the foreseeable future. Approximately $258,000,000 of the current backlog is expected to ship after 2010. Additionally, the segment has commitments of approximately $74,000,000 from customers under long-term supply arrangements which will be included in backlog upon receipt of specific purchase orders closer to the requirement dates for delivery.
Air and Liquid Processing. Sales and operating income for the segment decreased when compared to the six and three months ended June 30, 2009. Buffalo Pumps has been adversely affected by a reduction in the volume of pumps supplied to the energy sector and for the U.S. Navy. Sales and operating income for Aerofin have declined as a result of reduced activity with its utility customers. Buffalo Air Handling has been negatively impacted by the cutback in spending by the construction industry. As of June 30, 2010, backlog approximated $37,792,000 in comparison to $32,811,000 as of December 31, 2009 and $43,142,000 as of June 30, 2009. The reduction in backlog from a year ago is reflective of the economic slowdown in its industries. The majority of the current backlog is expected to ship in 2010.
Net Income and Earnings per Common Share. As a result of the above, the Corporation s net income for the six months ended June 30, 2010 and 2009 equaled $17,585,000 or $1.72 per common share and $15,112,000 or $1.48 per common share, respectively, and $9,374,000 or $0.91 per common share and $7,793,000 or $0.77 per common share for the three months ended June 30, 2010 and 2009.
As a result of the above, cash and cash equivalents decreased $8,591,000 in 2010 and ended the period at $57,849,000 in comparison to $66,441,000 at December 31, 2009.
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