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AmpcoPittsburgh Corp. Reports Operating Results (10-Q)

November 05, 2010 | About:
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10qk

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AmpcoPittsburgh Corp. (AP) filed Quarterly Report for the period ended 2010-09-30.

Ampcopittsburgh Corp. has a market cap of $278.5 million; its shares were traded at around $27.31 with a P/E ratio of 8.5 and P/S ratio of 0.9. The dividend yield of Ampcopittsburgh Corp. stocks is 2.5%. 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, Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Net Sales. Net sales for the nine months ended September 30, 2010 and 2009 were $244,721,000 and $232,695,000, respectively, and $79,537,000 and $71,961,000, respectively, for the three months then ended. Backlog approximated $398,235,000 at September 30, 2010 versus $501,311,000 as of December 31, 2009 and $538,073,000 as of September 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 nine months ended September 30, 2010 and 2009 approximated $37,126,000 and $39,009,000, respectively, and $10,697,000 and $12,713,000 for the three months ended September 30, 2010 and 2009, respectively. A discussion of operating results for the Corporation s two segments is included below.

Forged and Cast Rolls. Sales for the nine and three months ended September 30, 2010 improved against the comparable prior year periods as a result of an increase in shipments, particularly to its international customers. Despite higher costs for scrap and alloys and lower revenues from the variable-index surcharge program, operating income for the current year periods exceeded the same periods of the prior year benefitting from the additional sales volumes. Backlog approximated $357,139,000 at September 30, 2010 against $468,500,000 as of December 31, 2009 and $500,949,000 as of September 30, 2009. The decline is a result of shipments outpacing new orders. Historically, the norm for the level of backlog was 6 to 12 months. However, the surge in global production of steel in about 2005 and the subsequent demand for rolling mill rolls, because of shortage of supply, extended backlog to several years. The resulting high level of backlog is reducing and becoming more in line with its historical pattern. Approximately $122,000,000 of the current backlog is expected to ship after 2011. Additionally, the segment has commitments of approximately $68,000,000 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.

the utility industry negatively impacted Aerofin. Lack of spending on construction by pharmaceutical companies and universities unfavorably impacted Buffalo Air Handling. As of September 30, 2010, backlog approximated $41,096,000 against $32,811,000 as of December 31, 2009 and $37,124,000 as of September 30, 2009. The improvement is principally attributable to an increase in orders for pumps for the U.S. Navy and replacement coils. The majority of the current backlog is expected to ship over the next 15 months.

Net Income and Earnings per Common Share. As a result of the above, the Corporation s net income for the nine months ended September 30, 2010 and 2009 equaled $25,109,000 or $2.45 per common share and $23,827,000 or $2.34 per common share, respectively, and $7,524,000 or $0.73 per common share and $8,715,000 or $0.85 per common share for the three months ended September 30, 2010 and 2009, respectively.

As a result of the above, cash and cash equivalents decreased $5,359,000 in 2010 and ended the period at $61,082,000 in comparison to $66,441,000 at December 31, 2009.

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