Park-Ohio (PKOH) 8-K ParkOhio Reports Strong Second Quarter Results

Exhibit 99.1

FOR IMMEDIATE RELEASE	CONTACT:	EDWARD F. CRAWFORD
		PARK-OHIO HOLDINGS CORP.
		(440) 947-2000

ParkOhio Reports Strong Second Quarter Results

CLEVELAND, OHIO, July 27, 2011 — Park-Ohio Holdings Corp. (NASDAQ:PKOH) today announced results for its second quarter ended June 30, 2011.

SECOND QUARTER RESULTS

Edward F. Crawford, Chairman and Chief Executive Officer, stated, “ParkOhio continues to gain momentum.”

Net sales were $246.8 million for second quarter 2011, an increase of 24% from net sales of $198.3 million for second quarter 2010. During the second quarter of 2011, the Company refinanced its senior subordinated notes and amended its revolving credit facility, resulting in one-time debt extinguishment costs of $7.3 million and a provision for income taxes of $2.1 million due to the retirement of senior subordinated notes that were held by a foreign affiliate. With the refinancing charges, the Company had a second quarter net loss on a GAAP basis of $(1.1) million or $(.10) per share.

Net income, before the refinancing charges, was $8.3 million or $.69 per share dilutive. Net income for the second quarter of 2010 was $3.4 million or $.29 per share dilutive.

SIX MONTHS RESULTS

Net sales were $488.4 million for the first six months of 2011, an increase of 25% from net sales of $390.0 million for the same period of 2010. Net income on a GAAP basis for the first six months of 2011 was $7.6 million or $.64 per share dilutive.

Net income, before the refinancing charges, was $17.1 million or $1.42 per share dilutive. Net income for the first six months of 2010 was $5.5 million, or $.47 per share dilutive.

A conference call reviewing ParkOhio’s second quarter results will be broadcast live over the Internet on Thursday, July 28, commencing at 10:00 am Eastern Time. Simply log on tohttp://www.pkoh.com.

ParkOhio is a leading provider of supply chain logistics services and a manufacturer of highly engineered products. Headquartered in Cleveland, Ohio, the Company operates 31 manufacturing sites and 46 supply chain logistics facilities.

This news release contains forward-looking statements, including statements regarding future performance of the Company that are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected.

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Among the key factors that could cause actual results to differ materially from expectations are: the cyclical nature of the vehicular industry; timing of cost reductions; labor availability and stability; changes in economic and industry conditions; adverse impacts to the Company, its suppliers and customers from acts of terrorism or hostilities; the financial condition of the Company’s customers and suppliers, including the impact of any bankruptcies; the Company’s ability to successfully integrate the operations of acquired companies; the uncertainties of environmental, litigation or corporate contingencies; and changes in regulatory requirements. These and other risks and assumptions are described in the Company’s reports that are available from the United States Securities and Exchange Commission. The Company assumes no obligation to update the information in this release.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

(In Thousands, Except per Share Data)

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011		2010
Net sales	$	246,808		$	198,303	$	488,436	$	390,004
Cost of products sold		201,628			165,005		401,321		327,368
Gross profit		45,180			33,298		87,115		62,636
Selling, general and administrative expenses		28,846			22,337		54,511		43,305
Operating income		16,334			10,961		32,604		19,331
Interest expense		6,894			6,167		12,757		11,603
Debt extinguishment costs		7,335			0		7,335		0
Income before income taxes		2,105			4,794		12,512		7,728
Income taxes		3,212			1,379		4,890		2,247
Net Income (loss)	($	1,107	)	$	3,415	$	7,622	$	5,481
Amounts per common share:
Basic	($	0.10	)	$	0.30	$	0.66	$	0.49
Diluted	($	0.10	)	$	0.29	$	0.64	$	0.47
Common shares used in the computation:
Basic		11,545			11,475		11,503		11,229
Diluted		11,545			11,956		12,000		11,747
Other financial data:
EBITDA, as defined	$	21,303		$	15,777	$	41,971	$	28,827

Note A—EBITDA, as defined, reflects earnings before interest, income taxes, and excludes depreciation, amortization, certain non-cash charges and corporate-level expenses as defined in the Company’s Revolving Credit Agreement. EBITDA is not a measure of performance under generally accepted accounting principles (“GAAP”) and should not be considered in isolation or as a substitute for net income, cash flows from operating, investing and financing activities and other income or cash flow statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. The Company presents EBITDA because management believes that EBITDA is useful to investors as an indication of the Company’s satisfaction of its Debt Service Ratio covenant in its Revolving Credit Agreement and because EBITDA is a measure used under the Company’s revolving credit facility to determine whether the Company may incur additional debt under such facility. EBITDA as defined herein may not be comparable to other similarly titled measures of other companies.

The following table reconciles net income to EBITDA, as defined:

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011		2010
Net income (loss)	($	1,107	)	$	3,415	$	7,622	$	5,481
Add back:
Income taxes		3,212			1,379		4,890		2,247
Interest expense		6,894			6,167		12,757		11,603
Debt extinguishment costs		7,335			0		7,335		0
Depreciation and amortization		4,274			4,265		8,229		8,433
Miscellaneous		695			551		1,138		1,063
EBITDA, as defined	$	21,303		$	15,777	$	41,971	$	28,827

Note B—On April 7, 2011 the Company completed the sale of $250.0 million in aggregate principal amount of 8.125% Senior Notes due 2021 (the “Notes”). The Notes bear an interest rate of 8.125% per annum and will be payable semi-annually in arrears on April 1 and October 1 of each year commencing on October 1, 2011. The notes mature on April 1, 2021. The Company also entered into a fourth amended and restated credit agreement (the “Amended Credit Agreement”). The Amended Credit Agreement, among other things, provides an increased borrowing facility up to $200.0 million, extends the maturity date of the borrowings under the revolving credit facility to April 7, 2016 and amends fee and pricing terms. Furthermore the Company has the option to increase the availability under the revolving credit facility by $50.0 million. The Company also purchased all of its outstanding 8.375% senior subordinated notes due 2014 in the aggregate principal amount of $183.8 million that were not held by its affiliates, repaid all of the term loan A and term loan B outstanding under its then existing credit facility and retired the 8.375% senior subordinated notes due 2014 in the aggregate principal amount of $26.2 million that were held by an affiliate. The Company incurred debt extinguishment costs related primarily to premiums and other transaction costs associated with the tender and early redemption and wrote off deferred financing costs associated with the 8.375% Senior Subordinated Notes totaling $7.3 million ($.62 per share on a diluted basis) and recorded a provision for foreign income taxes of $2.1 million ($.18 per share on a diluted basis) resulting from the retirement of $26.2 million that were held by an affiliate.

Note C—The following table reconciles net income to net income, adjusted to exclude refinancing charges and an associated income tax provision. The Company presents net income, adjusted to exclude refinancing charges and an associated income tax provision, to provide an indication of the Company’s core operating performance and facilitate a comparison between the 2010 and 2011 periods.

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011		2010
Net income (loss), as reported	($	1,107	)	$	3,415	$	7,622	$	5,481
Refinancing charges		7,335			0		7,335		0
Provision for income tax associated with the refinancing		2,100			0		2,100		0
Net income, as adjusted	$	8,328		$	3,415	$	17,057	$	5,481

CONDENSED CONSOLIDATED BALANCE SHEETS

PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

	June 30, 2011		December 31, 2010
	(Unaudited)		(Audited)
	(In Thousands)
ASSETS
Current Assets
Cash and cash equivalents	$	60,094	$	35,311
Accounts receivable, net		147,305		126,409
Inventories		205,752		192,542
Deferred tax assets		10,496		10,496
Unbilled contract revenue		17,556		12,751
Other current assets		12,156		12,800
Total Current Assets		453,359		390,309
Property, Plant and Equipment		257,047		253,077
Less accumulated depreciation		189,474		184,294
Total Property Plant and Equipment		67,573		68,783
Other Assets
Goodwill		9,891		9,100
Other		90,511		84,340
Total Other Assets		100,402		93,440
Total Assets	$	621,334	$	552,532
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Trade accounts payable	$	116,494	$	95,695
Accrued expenses		65,206		59,487
Current portion of long-term debt		1,291		13,756
Current portion of other postretirement benefits		2,178		2,178
Total Current Liabilities		185,169		171,116
Long-Term Liabilities, less current portion
Senior Notes		250,000		183,835
Revolving credit		90,500		113,300
Other long-term debt		4,948		5,322
Deferred tax liability		9,721		9,721
Other postretirement benefits and other long-term liabilities		22,662		22,863
Total Long-Term Liabilities		377,831		335,041
Shareholders’ Equity		58,334		46,375
Total Liabilities and Shareholders’ Equity	$	621,334	$	552,532

BUSINESS SEGMENT INFORMATION (UNAUDITED)

PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

(In Thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
NET SALES
Supply Technologies	$	125,522		$	97,185		$	248,748		$	191,423
Aluminum Products		33,452			37,572			72,493			74,160
Manufactured Products		87,834			63,546			167,195			124,421
	$	246,808		$	198,303		$	488,436		$	390,004
INCOME (LOSS) BEFORE INCOME TAXES
Supply Technologies	$	8,419		$	5,311		$	17,052		$	9,795
Aluminum Products		1,304			2,299			4,618			4,235
Manufactured Products		11,333			7,597			19,879			12,529
		21,056			15,207			41,549			26,559
Corporate and Other Costs		(4,722	)		(4,246	)		(8,945	)		(7,228	)
Interest Expense		(6,894	)		(6,167	)		(12,757	)		(11,603	)
Debt extinguishment costs		(7,335	)		0			(7,335	)		0
	$	2,105		$	4,794		$	12,512		$	7,728