CONTACT:
Dee Ann Johnson
(412) 456-4410
FOR IMMEDIATE RELEASE
PITTSBURGH, PA February 4, 2005. . . . . Ampco-Pittsburgh Corporation
(NYSE: AP) announced sales of $51,506,000 and $202,861,000 for the quarter
and year ended December 31, 2004, respectively, against $47,849,000 and
$180,233,000 for the same periods of the prior year. Net loss approximated
$(3,066,000) or $(0.32) per share for the three months ended December 31,
2004 in comparison to net income of $1,038,000 or $0.11 per share for the
three months ended December 31, 2003. The Corporation incurred a net loss
of $(2,599,000) or $(0.27) per share and $(2,190,000) or $(0.23) per share
for the years ended December 31, 2004 and 2003, respectively. Included in
results for 2003 is an after-tax loss from discontinued operations of
$(5,098,000) or $(0.53) per share arising from the third quarter sale of
its Plastics Processing Machinery segment. (Loss) income from operations
approximated $(3,411,000) and $1,357,000 for the three months ended
December 31, 2004 and 2003, respectively, and $(2,224,000) and $5,061,000
for the respective years then ended.
The Forged and Cast Rolls Segment incurred significant losses in the
quarter which resulted in operating losses for the full year. There were
several reasons, including the interruption in business caused by flooding
at the Carnegie, Pennsylvania forged roll finishing plant as a result of
Hurricane Ivan, the unprecedented increases in the cost of steel scrap,
ferro alloys and energy, and poor operating performance of the cast roll
unit in England. A business interruption insurance claim is expected to be
settled in the first part of 2005. Activity levels in the construction and
energy markets remained weak. Accordingly, results from operations of the
Air and Liquid Processing segment were relatively unchanged compared to
those of the fourth quarter and the year ended December 31, 2003.
In the quarter and year, the Corporation incurred lower uninsured
legal costs related to lawsuits in connection with asbestos-containing
products when compared with the same periods in 2003. However, the
reductions were in large part offset both in the quarter and the year by
professional fees incurred to meet the requirements of the Sarbanes Oxley
Act.
The outlook for the first part of 2005 is for continued weakness in
both segments. However, as the Forged and Cast Rolls operations
progressively work through the order backlog, which is at an all-time high,
and providing that material costs stabilize which seems to be the case,
with the exception of certain ferro alloys, the segment expects to have an
improved second six months. This will be the result of improved selling
prices and recovery of increased costs through the imposition of
surcharges. Despite the losses for 2004, the financial condition of the
Corporation remains strong.
# # #
AMPCO-PITTSBURGH CORPORATION
FINANCIAL SUMMARY
Three Months Ended Dec 31, Year Ended Dec 31,
2004 2003 2004 2003
Sales $51,506,000 $47,849,000 $202,861,000 $180,233,000
(Loss) income from
operations (3,411,000) 1,357,000 (2,224,000) 5,061,000
Other (expense) income-net (603,000) 98,000 (359,000) (419,000)
(Loss) income before
income taxes (4,014,000) 1,455,000 (2,583,000) 4,642,000
Income tax (benefit)
provision (948,000) 441,000 16,000 1,734,000
(Loss) income from
continuing operations (3,066,000) 1,014,000 (2,599,000) 2,908,000
Discontinued operations:
Income (loss) from
operations - 26,000 - (5,330,000)
Income tax provision
(benefit) - 2,000 - (232,000)
- 24,000 - (5,098,000)
Net (loss) income $(3,066,000) $ 1,038,000 $ (2,599,000) $ (2,190,000)
Basic and diluted
earnings per share:
(Loss) income from
continuing operations $ (0.32) $ 0.11 $ (0.27) $ 0.30
Loss from discontinued
operations $ - $ - $ - $ (0.53)
Net (loss) income $ (0.32) $ 0.11 $ (0.27) $ (0.23)