CONTACT:
Ronald W. Hasek
(412) 456-4459
FOR IMMEDIATE RELEASE
PITTSBURGH, PA July 20, 2004. . . . . Ampco-Pittsburgh Corporation
(NYSE: AP) had sales of $53,646,000 and $100,432,000 for the three and six
months ended June 30, 2004, respectively, against sales of $45,495,000 and
$89,025,000 for the comparable prior year periods. Net income for the
three months ended June 30, 2004 and 2003 was $840,000 or $0.09 per share
and $391,000 or $0.04 per share and for the six months ended June 30, 2004
and 2003 was $2,048,000 or $0.21 per share and $588,000 or $0.06 per share,
respectively. Income from operations approximated $1,571,000 and
$3,193,000 for the three and six months ended June 30, 2004 against
$1,507,000 and $2,197,000 for the comparable prior year periods. Amounts
for 2003 are after the reclassification of results for the Plastics
Processing Machinery segment to discontinued operations, which was sold in
August 2003. During the three and six months of 2004, the Corporation
incurred pre-tax legal costs of approximately $223,000 and $728,000,
respectively, for case management and insurance recovery relating to
lawsuits filed in connection with asbestos-containing products manufactured
decades ago in comparison to $669,000 and $1,273,000 for the same periods
of the prior year.
Although sales improved significantly in the quarter, margins of the
Forged and Cast Rolls segment were adversely impacted by unprecedented
increases in the cost of steel scrap, alloys and natural gas. Selling
price surcharges have been imposed on incoming orders; however, the level
of order backlog is such that it will be towards year end before the
escalation in costs will begin to be recovered. In addition, the U.K.
operation was further impacted by one-time operational problems resulting
in losses for the quarter. Despite increased sales, the results of the Air
and Liquid Processing segment, after adjustment for the reduction in the
asbestos-related costs mentioned above, were close to flat with those of
the same quarter in 2003 and are reflective of competitive pressures on
prices as demand in the construction and energy sectors remains weak.
The outlook for the balance of the year is for continued weakness in
both segments. The financial condition of the Corporation remains strong.
# # #
AMPCO-PITTSBURGH CORPORATION
FINANCIAL SUMMARY
Three Months Ended June 30, Six Months Ended June 30,
2004 2003 2004 2003
Sales $53,646,000 $45,495,000 $100,432,000 $ 89,025,000
Income from operations 1,571,000 1,507,000 3,193,000 2,197,000
Other income (expense)-net 86,000 (155,000) 268,000 (401,000)
Income before income taxes 1,657,000 1,352,000 3,461,000 1,796,000
Income tax provision 817,000 777,000 1,413,000 1,069,000
Net income from continuing
operations 840,000 575,000 2,048,000 727,000
Discontinued operations:
Loss from operations - (271,000) - (189,000)
Income tax benefit - (87,000) - (50,000)
- (184,000) - (139,000)
Net income $ 840,000 $ 391,000 $ 2,048,000 $ 588,000
Basic and diluted
earnings per share:
Net income from
continuing operations $ 0.09 $ 0.06 $ 0.21 $ 0.08
Net loss from dis-
continued operations $ - $ (0.02) $ - $ (0.02)
Net income $ 0.09 $ 0.04 $ 0.21 $ 0.06