EXHIBIT 99.1 -------------- Financial Statements and Supplemental Schedules Amcast Industrial Corporation 401(k) Salary Deferral Plan August 31, 1999 and 1998, and for the year ended August 31,1999 with Independent Auditors' Report 2 Amcast Industrial Corporation 401(k) Salary Deferral Plan Financial Statements and Supplemental Schedules August 31, 1999 and 1998, and for the year ended August 31, 1999 Table of Contents Independent Auditors' Report...................................................1 Audited Financial Statements Statements of Net Assets Available for Benefits................................2 Statement of Changes in Net Assets Available for Benefits......................3 Notes to Financial Statements..................................................4 Supplemental Schedules Line 27a - Schedule of Assets Held for Investment Purposes.....................9 Line 27d - Schedule of Reportable Transactions................................10 INDEPENDENT AUDITORS' REPORT Amcast Industrial Corporation 401(k) Salary Deferral Plan We have audited the accompanying statements of net assets available for benefits of Amcast Industrial Corporation 401(k) Salary Deferral Plan as of August 31, 1999, and the related statement of changes in net assets available for benefits for the year ended August 31, 1999. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Amcast Industrial Corporation 401(k) Salary Deferral Plan as of August 31, 1998, were audited by other auditors whose report dated February 12, 1999, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at August 31, 1999, and the changes in its net assets available for benefits for the year ended August 31, 1999, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of August 31, 1999, and reportable transactions for the year then ended, are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the financial statements. The supplemental schedules have been subjected to the auditing procedures applied in our audit of the financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole. /S/ BATTELLE & BATTELLE LLP February 11, 2000 Dayton, Ohio Amcast Industrial Corporation 401(k) Salary Deferral Plan Statements of Net Assets Available for Benefits August 31 1999 1998 ----------------------------- Assets Cash and cash equivalents: Uninvested cash $ 6,792 $ - Investments, at fair value: Shares of registered investment companies 22,290,840 17,527,427 Common/collective trust fund 9,845,653 9,209,421 Amcast Industrial Corporation common stock 3,781,297 3,317,422 Loans to participants 1,360,937 1,342,973 ----------------------------- 37,278,727 31,397,243 Receivables: Accrued interest and dividend income 3,022 4,170 Employer contributions receivable 12,137 12,662 Employee contributions receivable 84,646 109,761 ----------------------------- 99,805 126,593 Net assets available for benefits $ 37,385,324 $ 31,523,836 ============================= See accompanying notes. Amcast Industrial Corporation 401(k) Salary Deferral Plan Statement of Changes in Net Assets Available for Benefits Year ended August 31, 1999 Fund Information ------------------------------------------------------------------------ Amcast T. Rowe T. Rowe T. Rowe T. Rowe T. Rowe Industrial Price Price Price Price Price Corporation Stable International New New Equity Common Value Stock Horizons Income Index 500 Stock Fund Fund Fund Fund Fund ------------------------------------------------------------------------- Additions: Investment income: Interest and dividends $ 125,594 $ 530,386 $ 5,229 $ 8,416 $ 96,784 $ 96,161 Net appreciation (depreciation) in fair value of investments 154,175 - 28,616 44,063 (98,918) 1,662,096 Contributions: Participant 349,851 661,866 61,363 105,266 167,685 817,970 Employer 287,177 7,581 1,890 3,181 7,515 28,006 --------------------------------------------------------------------------- 916,797 1,199,833 97,098 160,926 173,066 2,604,233 Deductions: Benefit payments (358,192) (1,585,080) (14,222) (28,061) (211,051) (920,288) Conversions to other plans 70,498 242,680 43,966 79,112 180,080 826,024 --------------------------------------------------------------------------- (287,694) (1,342,400) 29,744 51,051 (30,971) (94,264) Interfund transfers (171,670) 771,023 3,254 11,486 (181,165) 408,374 --------------------------------------------------------------------------- Net (decrease) increase 457,433 628,456 130,096 223,463 (39,070) 2,918,343 Net assets available for benefits, August 31, 1998 3,340,018 9,233,731 109,490 107,394 1,287,388 4,487,850 --------------------------------------------------------------------------- Net assets available for benefits, August 31, 1999 $3,797,451 $9,862,187 $ 239,586 $ 330,857 $1,248,318 $7,406,193 ========================================================================= ------------------------------------------------- T. Rowe T. Rowe Price Price Equity Capital (1) Income Appreciation Unallocated Fund Fund Other Fund Total -------------------------------------------------------------- Additions: Investment income: Interest and dividends $ 713,647 $ 521,575 $ 112,878 $ - $ 2,210,670 Net appreciation (depreciation) in fair value of investments 1,225,892 (16,843) - - 2,999,081 Contributions: Participant 893,633 385,958 - - 3,443,591 Employer 20,285 3,518 - - 359,153 ---------------------------------------------------------------- 2,853,457 894,208 112,878 - 9,012,495 Deductions: Benefit payments (1,506,472) (544,159) (94,594) - (5,262,119) Conversions to other plans 578,302 90,450 - - 2,111,112 ---------------------------------------------------------------- (928,170) (453,709) (94,594) - (3,151,007) Interfund transfers (573,781) (273,993) (320) 6,792 --------------------------------------------------------------- Net (decrease) increase 1,351,506 166,506 17,964 6,792 5,861,488 Net assets available for benefits, August 31, 1998 8,198,644 3,416,348 1,342,973 - 31,523,836 --------------------------------------------------------------- Net assets available for benefits, August 31, 1999 $ 9,550,149 $ 3,582,854 $1,360,937 $ 6,792 $37,385,324 =============================================================== See accompanying notes. Amcast Industrial Corporation 401(k) Salary Deferral Plan Notes to Financial Statements August 31, 1999 1. Description of the Plan The following description of Amcast Industrial Corporation 401(k) Salary Deferral Plan (the Plan) is provided for general information purposes only. Participants should refer to the Summary Plan Description for a more complete description of the plan's provisions. General The Plan is a contributory defined contribution plan covering substantially all employees of Amcast Industrial Corporation (the Company and Plan Sponsor) who are compensated on a salary basis or are hourly and are not covered by a collective bargaining agreement. Eligible employees may participate on the first day of the month coincident with or first following six months of employment. It is subject to the Employee Retirement Income Security Act of 1974 (ERISA). Contributions Each year, participants may contribute, in whole percentages, an amount up to 20 percent of annual compensation, as defined by the Plan Document. Additionally, participants may make up to two lump sum contributions to the Plan per year. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans. The Company makes matching contributions equal to 15 percent (25 percent for Lee Brass employees) of the first 6 percent of compensation that is deferred by participants to the Plan. These matching contributions are made in common stock of the Company. The Company also makes supplemental matching contributions to the Plan provided that the Company's annual minimum return on net worth is at least 10.1 percent. The amount of these supplemental matching contributions increases based upon the level of return; however, the amount shall not exceed 35 percent of the participants' salary deferral contributions. All employer contributions are in Company stock. Vesting Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Company contribution portion of their accounts plus actual earnings thereon is based on years of continuous service. Participants are 50 percent vested in Company contributions made after one year of service with the Company, 75 percent vested after two years of service, and fully vested after three years of service. 1. Description of the Plan (continued) Participant Loans Participants may borrow from their fund accounts a minimum of $500 up to a maximum of the lesser of $50,000 (less the highest outstanding balance of any loan made to the participant under the Plan during the 12-month period preceding the date of the loan) or 50 percent of his or her vested account balance. The loan term is not to exceed 5 years unless the loan is for the purchase of a principal residence, in which case the term may be as long as 30 years. Interest and principal is paid ratably through at least quarterly payroll deductions. Participant Accounts Each participant's account is credited with the participant's contributions and allocations of (a) the Company's contributions and (b) Plan earnings. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Payment of Benefits On termination of service for any reason, a participant may receive a lump-sum amount equal to the vested value of his or her account, in either cash or stock. Administrative Expenses Substantially all expenses of the Plan are paid by the Company. 2. Summary of Significant Accounting Policies Basis of Accounting The Plan's financial statements are prepared on the accrual basis of accounting. 2. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Investment Valuation The Plan's investments are stated at fair value. The shares of registered investment companies are valued at quoted market prices which represent the net asset values of shares held by the Plan at year-end. Participant notes receivable are valued at their outstanding balances, which approximate fair value. Company common stock and the participation units owned by the Plan in the common/collective trust fund are based on quoted redemption value on the last business day of the Plan year. 3. Investments The fair value of individual investments that represent 5 percent or more of the Plan's net assets at August 31, are as follows: 1999 1998 ----------- ----------- Amcast Industrial Corporation common stock $ 3,781,297 $ 3,317,422 Shares of registered investment companies: T. Rowe Price Capital Appreciation Fund 3,573,335 3,398,324 T. Rowe Price Equity Index 500 Fund 7,381,667 4,465,974 T. Rowe Price Equity Income Fund 9,525,965 8,167,282 Common/collective trust fund: T. Rowe Price Stable Value Fund 9,845,653 9,209,421 3. Investments (continued) During fiscal 1999, the Plan's investments (including investments bought, sold, and held during the year) appreciated in value by $2,999,081 as follows: Year ended August 31, 1999 ----------------- Investments at fair value, as determined by quoted market price: Shares of registered investment companies $ 2,844,906 Amcast Industrial Corporation common stock 154,175 ---------------- $ 2,999,081 ================ 4. Income Tax Status The Internal Revenue Service ruled on July 21, 1992, that the Plan qualifies under Section 401(a) of the Internal Revenue Code (the "IRC") and, therefore, the underlying trust is not subject to income tax under present tax law. The Plan was subsequently amended. The Pension Administration Committee believes that the Plan, as amended is operating in conformity with the IRC. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The Pension Administration Committee is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. 5. Transactions With Parties-In-Interest The Trust is not charged for administrative services performed on its behalf by the Company. The Plan also invests in common stock of the Company which is the Plan Sponsor. 6. Conversions from Other Plans Effective March 30, 1998, the Company sold its Rancho Cucamonga, California investment casting operation, Amcast Precision. The employees of this operation were participants in this Plan. The participant balances totaling $1.4 million were transferred to the subsequent owner's benefit plan. The remaining balance was transferred to a new Company-sponsored plan established on September 1, 1997. 7. Sale of Division On September 26, 1998, Superior Valve, a division of Amcast Industrial Corporation (Plan Sponsor) and whose employees were participants under the Plan was sold. The participants' assets in the plan were distributed as prescribed by the plan document. 8. Plan Termination Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100 percent vested in their accounts. Supplemental Schedules Amcast Industrial Corporation 401(k) Salary Deferral Plan EIN 31-0258080 / Plan 002 Line 27a - Schedule of Assets Held for Investment Purposes August 31, 1999 Description of Fair Identity of Issue Investment Cost Value - --------------------------------------------------------------------------------------------------------------- Shares of registered investment companies * T. Rowe Price International Stock Fund 14,802 shares $ 224,321 $ 237,863 * T. Rowe Price New Horizons Fund 13,628 shares 319,644 328,444 * T. Rowe Price New Income Fund 150,188 shares 1,332,662 1,243,556 * T. Rowe Price Capital Appreciation Fund 250,409 shares 3,496,621 3,573,335 * T. Rowe Price Equity Index 500 Fund 206,250 shares 5,394,346 7,381,677 * T. Rowe Price Equity Income Fund 345,144 shares 7,842,159 9,525,965 --------------------------------- 18,609,753 22,290,840 Common/collective trust fund * T. Rowe Price Stable Value Fund 9,845,653 units 9,845,653 9,845,653 * Amcast Industrial Corporation common stock 238,192 shares 4,367,678 3,781,297 Rates ranging from Participant loans 7% to 10% 1,360,937 --------------------------------- $ 32,823,084 $ 37,278,727 ================================= * Indicates party-in-interest to the Plan. Amcast Industrial Corporation 401(k) Salary Deferral Plan EIN 31-0258080 / Plan 002 Line 27d - Schedule of Reportable Transactions Year ended August 31, 1999 Value of Description Cost Asset at Net of Purchase Selling of Date of Gain or Identity of Party Involved Investment Price Price Asset Transaction (Loss) ----------------------------------------------------------------------------------------------------------------------------------- Category (iii)--Series of Transactions in Excess of 5 Percent of Net Assets Amcast Industrial Corporation common stock 1,008,033 - - 1,008,033 - - 708,030 702,957 708,030 5,073 T.Rowe Price Stable Value common/collective trust fund $2,387,392 $ - $ - $2,387,392 - - 1,768,356 1,768,356 1,768,356 - T. Rowe Price Equity Index 500 Fund mutual fund 2,378,748 - - 2,378,748 - - 1,147,024 720,019 1,147,024 427,005 T. Rowe Price Equity Income Fund mutual fund 2,219,825 - - 2,219,825 - - 2,188,736 1,729,438 2,188,736 459,298 T. Rowe Price Capital Appreciation Fund mutual fund 1,010,329 - - 2,360,775 - - 821,926 808,766 821,926 13,160 There were no category (i) (ii) or (iv) transactions during the year. Note: Expense incurred with transaction and rental expense are not applicable.