CONTACT:
Dee Ann Johnson
Vice President Controller and Treasurer
(412) 456-4410
dajohnson@ampcopgh.com
FOR IMMEDIATE RELEASE
PITTSBURGH, PA
July 28, 2008
Ampco-Pittsburgh Announces Increase in Earnings for the Second Quarter.
Ampco-Pittsburgh Corporation (NYSE: AP) announces sales for the three and six months ended June 30, 2008 of $102,689,000 and $200,519,000, respectively, against $88,740,000 and $176,480,000 for the comparable prior year periods. Net income for the three months ended June 30, 2008 and 2007 was $11,609,000 or $1.14 per share and $10,178,000 or $1.02 per share, respectively, and for the six months ended June 30, 2008 and 2007 was $21,752,000 or $2.14 per share and $19,642,000 or $1.98 per share.
Income from operations approximated $17,751,000 and $33,571,000 for the three and six months ended June 30, 2008, respectively, against $15,484,000 and $29,269,000 for the same periods in 2007.
The global demand for rolling mill rolls continues at unprecedented levels and the order backlog of the Forged and Cast Rolls segment grew during the quarter. Sales and earnings of the segment improved; however, export shipments were lower than planned due to the lack of availability of shipping containers, special equipment and cargo ships. In addition, earnings were impacted by rapid increases in the cost of steel scrap and alloys and the lag in timing of the recovery of the increases from surcharges applied to the selling price of rolls.
The quarter also saw improvement in the sales and income of the Air and Liquid Processing segment; however, the segment has recently experienced a slowing of incoming orders from the construction industry.
The outlook for earnings from operations and the financial condition of the Corporation remains strong.
The matters discussed herein may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Certain of these risks are set forth in the Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, as well as the Corporation's other reports filed with the Securities and Exchange Commission.
AMPCO-PITTSBURGH CORPORATION
FINANCIAL SUMMARY
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | | | | | | | | | | | |
| Sales | | $ | 102,689,000 | | | $ | 88,740,000 | | | $ | 200,519,000 | | | $ | 176,480,000 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income from operations | | | 17,751,000 | | | | 15,484,000 | | | | 33,571,000 | | | | 29,269,000 | |
| Other income (expense) – net | | | 165,000 | | | | (24,000 | ) | | | (248,000 | ) | | | (49,000 | ) |
| | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 17,916,000 | | | | 15,460,000 | | | | 33,323,000 | | | | 29,220,000 | |
| Income tax expense | | | 6,307,000 | | | | 5,282,000 | | | | 11,571,000 | | | | 9,578,000 | |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 11,609,000 | | | $ | 10,178,000 | | | $ | 21,752,000 | | | $ | 19,642,000 | |
| | | | | | | | | | | | | | | | | |
| Earnings per common share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 1.14 | | | $ | 1.02 | | | $ | 2,14 | | | $ | 1.98 | |
| Diluted | | $ | 1.14 | | | $ | 1.01 | | | $ | 2.14 | | | $ | 1.96 | |
| | | | | | | | | | | | | | | | | |
| Weighted-average number of | | | | | | | | | | | | | | | | |
| common shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 10,177,497 | | | | 9,988,145 | | | | 10,177,497 | | | | 9,913,237 | |
| Diluted | | | 10,179,860 | | | | 10,076,936 | | | | 10,179,800 | | | | 10,031,854 | |
| | | | | | | | | | | | | | | | | |
