Exhibit 99.1
Financial Statements
and Supplemental Schedules
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
December 31, 2001 and 2000,
and for the years then ended,
with Independent Auditors' Report
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
Financial Statements
and Supplemental Schedules
December 31, 2001 and 2000,
and for the years then ended
Table of Contents
Independent Auditors' Report...................................................1
Audited Financial Statements
Statement of Net Assets Available for Benefits.................................2
Statement of Changes in Net Assets Available for Benefits....................3-4
Notes to Financial Statements................................................5-9
Supplemental Schedules
Schedule H, Part IV, 4i - Schedule of Assets Held for Investment Purposes..10-11
Schedule H, Part IV, 4j - Schedule of Reportable Transactions..............12-13
Independent Auditors' Report
Amcast Industrial Corporation
401(k) Salary Deferral Plan for Bargaining Unit Employees - Plan 2
We have audited the accompanying statement of net assets available for benefits
of the Amcast Industrial Corporation 401(k) Salary Deferral Plan for Bargaining
Unit Employees - Plan 2 as of December 31, 2001 and 2000, and the related
statement of changes in net assets available for benefits for the years then
ended. 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.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. 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 audits provide 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
December 31, 2001 and 2000, and the changes in its net assets available for
benefits for the years then ended, in conformity with accounting principles
generally accepted in the United States of America.
Our audits were 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 and reportable transactions as of and for the years
ended December 31, 2001 and 2000 are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedules have been
subjected to the auditing procedures applied in our audits of the basic
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
June 6, 2002
Dayton, Ohio
1
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
Statement of Net Assets Available for Benefits
December 31
---------------------------
2001 2000
----------- ------------
Assets
Participant-directed investments, at fair value
Shares of registered investment companies $ 2,887,496 $ 3,003,781
Common/collective trust fund 2,283,065 2,023,817
Amcast Industrial Corporation common stock 69,065 91,366
Loans to participants 409,454 372,323
----------- ------------
5,649,080 5,491,287
----------- ------------
Receivables
Interest and dividend income 671 1,283
Participant contributions 10,823 25,982
Employer contributions 247 427
----------- ------------
11,741 27,692
----------- ------------
Net assets available for benefits $ 5,660,821 $ 5,518,979
=========== ============
The accompanying notes are an integral part of the financial statements.
2
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
Statement of Changes in Net Assets Available for Benefits
For the year ended December 31, 2001
Fund Information
-------------------------------------------------------------------
Amcast T. Rowe T. Rowe T. Rowe T. Rowe
Industrial Price Price Price Price
Corporation Stable International New New
Common Value Stock Horizons Income
Stock Fund Fund Fund Fund
-------------------------------------------------------------------
Additions
Investment income
Interest and dividends $ 1,415 $ 126,169 $ 1,241 $ 2,534 $ 4,288
Net (depreciation)
appreciation in fair
value of investments (51,767) - (11,116) (4,289) 1,283
Contributions
Participant 19,724 245,850 15,528 24,379 36,740
Employer 10,816 - - - -
-------------------------------------------------------------------
(19,812) 372,019 5,653 22,624 42,311
Deductions
Benefit payments (11,816) (233,247) (2,948) (3,248) (8,677)
Interfund transfers 8,613 114,547 (1,607) (27,225) 3,113
-------------------------------------------------------------------
Net increase (decrease) (23,015) 253,319 1,098 (7,849) 36,747
Net assets available for
benefits, December 31, 2000 92,696 2,034,338 42,407 114,875 57,245
-------------------------------------------------------------------
Net assets available for
benefits, December 31, 2001 $ 69,681 $ 2,287,657 $ 43,505 $ 107,026 $ 93,992
====================================================================
T. Rowe T. Rowe T. Rowe
Price Price Price
Equity Equity Capital
Index 500 Income Appreciation Participant
Fund Fund Fund Loans Total
-------------------------------------------------------------------
Additions
Investment income
Interest and dividends $ 4,342 $ 116,007 $ 8,557 $ 35,257 $ 299,810
Net (depreciation)
appreciation in fair
value of investments (62,121) (83,138) 4,501 - (206,647)
Contributions
Participant 76,663 168,007 39,293 - 626,184
Employer - - - - 10,816
-------------------------------------------------------------------
18,884 200,876 52,351 35,257 730,163
Deductions
Benefit payments (17,680) (268,991) (17,741) (23,973) (588,321)
Interfund transfers (6,107) (149,495) 32,313 25,848 -
-------------------------------------------------------------------
Net increase (decrease) (4,903) (217,610) 66,923 37,132 141,842
Net assets available for
benefits, December 31, 2000 433,252 2,256,038 115,806 372,322 5,518,979
-------------------------------------------------------------------
Net assets available for
benefits, December 31, 2001 $ 428,349 $ 2,038,428 $ 182,729 $ 409,454 $ 5,660,821
====================================================================
The accompanying notes are an integral part of the financial statements.
3
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
Statement of Changes in Net Assets Available for Benefits
For the year ended December 31, 2000
Fund Information
-------------------------------------------------------------------
Amcast T. Rowe T. Rowe T. Rowe T. Rowe
Industrial Price Price Price Price
Corporation Stable International New New
Common Value Stock Horizons Income
Stock Fund Fund Fund Fund
-------------------------------------------------------------------
Additions
Investment income
Interest and dividends $ 4,359 $ 88,701 $ 3,300 $ 13,032 $ 2,579
Net (depreciation)
appreciation in fair
value of investments (42,291) - (8,564) (23,639) 1,930
Contributions
Participant 16,843 199,658 12,556 22,236 28,555
Employer 11,153 - - - -
Transfer from Amcast Industrial
Corporation 401(k) Salary
Deferral Plan for Bargaining
Unit Employees - 700,184 - - -
-------------------------------------------------------------------
(9,936) 988,543 7,292 11,629 33,064
Deductions
Benefit payments (5,838) (112,438) (247) (4,275) (2,127)
Interfund transfers (909) (31,078) 28,681 83,018 (8,062)
-------------------------------------------------------------------
Net increase (decrease) (16,683) 845,027 35,726 90,372 22,875
Net assets available for
benefits, December 31, 1999 109,379 1,189,311 6,681 24,503 34,370
-------------------------------------------------------------------
Net assets available for
benefits, December 31, 2000 $ 92,696 $ 2,034,338 $ 42,407 $ 114,875 $ 57,245
====================================================================
T. Rowe T. Rowe T. Rowe
Price Price Price
Equity Equity Capital
Index 500 Income Appreciation Participant
Fund Fund Fund Loans Total
-------------------------------------------------------------------
Additions
Investment income
Interest and dividends $ 4,783 $ 228,438 $ 9,375 $ 22,540 $ 377,107
Net (depreciation)
appreciation in fair
value of investments (34,311) (26,354) 7,726 - (125,503)
Contributions
Participant 74,571 144,203 24,284 - 522,906
Employer - - - - 11,153
Transfer from Amcast Industrial
Corporation 401(k) Salary
Deferral Plan for Bargaining
Unit Employees - 1,037,102 - - 1,737,286
-------------------------------------------------------------------
45,043 1,383,389 41,385 22,540 2,522,949
Deductions
Benefit payments (14,197) (297,473) (230) (22,925) (459,750)
Interfund transfers 228,743 (423,503) 19,370 103,740 -
-------------------------------------------------------------------
Net increase (decrease) 259,589 662,413 60,525 103,355 2,063,199
Net assets available for
benefits, December 31, 1999 173,663 1,593,625 55,281 268,967 3,455,780
-------------------------------------------------------------------
Net assets available for
benefits, December 31, 2000 $ 433,252 $ 2,256,038 $ 115,806 $ 372,322 $ 5,518,979
====================================================================
The accompanying notes are an integral part of the financial statements.
4
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
Notes to Financial Statements
December 31, 2001
1. Description of the Plan
The following description of the Amcast Industrial Corporation 401(k) Salary
Deferral Plan for Bargaining Unit Employees - Plan 2 (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 certain employees
of the Amcast Industrial Corporation (the Company and Plan Sponsor) who are
compensated on an hourly basis and are covered by a collective bargaining
agreement. The Plan is subject to the Employee Retirement Income Security Act of
1974 (ERISA).
Contributions
The Plan allows for participant deferred contributions in participant-directed
amounts from 1 percent to 15 percent of their annual compensation, and allows
for transfers by participants from any other plan meeting the requirements of
Internal Revenue Code (the IRC) Section 401(a). Participants may also annually
contribute no more than two lump sum salary deferral contributions, provided
that total contributions do not exceed the maximum contribution allowed for each
participant. The Company makes matching contributions equal to 15 percent of the
first 6 percent of compensation that is deferred by participants to the Plan to
certain employees based on their respective collective bargaining agreement. All
employer contributions are in Company stock.
Vesting
Participants are immediately vested in their deferral contributions plus actual
earnings thereon. 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. Vested benefits
are paid by several optional methods upon retirement, death, or termination.
5
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
Notes to Financial Statements
December 31, 2001
1. Description of the Plan (continued)
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, either in (a) cash or
(b) cash for all investments other than Company stock and the participant's
related shares of the Company's stock.
Participant Loans
Under the Plan, participants may borrow up to 50 percent of their vested balance
not to exceed $50,000. 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 rates on these loans are one percent above the prime rate
of interest on the first business day of the calendar quarter in which a loan
application is made to the Company.
Participant Accounts
Each participant's account is credited with the participant's contributions and
allocations of (a) the Company's contributions and (b) the Plan's earnings. The
benefit to which a participant is entitled is the benefit that can be provided
from the participant's account.
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.
6
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
Notes to Financial Statements
December 31, 2001
2. Summary of Significant Accounting Policies (continued)
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires the Plan
administrator to make estimates and assumptions that affect certain amounts and
disclosures 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. Company common stock and
the participation units owed by the Plan in the common/collective trust fund are
based on quoted redemption value on the last business day of the Plan year.
Participant loans are valued at their outstanding balances, which approximate
fair value.
3. Investments
The fair value of individual investments that represent 5 percent or more of the
Plan's net assets at December 31 are as follows:
2001 2000
------------ -------------
Shares of registered investment companies
T. Rowe Price Equity Income Fund $ 2,035,276 $ 2,248,869
T. Rowe Price Equity Index 500 Fund 427,086 429,591
Common/collective trust fund
T. Rowe Price Stable Value Fund 2,283,065 2,023,817
Participant Loans 409,454 372,323
7
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
Notes to Financial Statements
December 31, 2001
3. Investments (continued)
For the years ended December 31, 2001 and 2000, the Plan's investments
(including investments bought, sold, and held during the year) depreciated in
value by $206,647, and $125,503, respectively:
2001 2000
----------- -----------
Shares of registered investment companies $ 154,880 $ 83,212
Amcast Industrial Corporation common stock 51,767 42,291
----------- -----------
$ 206,647 $ 125,503
=========== ===========
4. Income Tax Status
The Internal Revenue Service (IRS) has not yet determined if the Plan qualifies
under Section 401(a) of the Internal Revenue Code (the IRC). However, the Plan
administrator believes that the Plan is qualified and, therefore, the underlying
trust is not subject to income tax under present law. 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 (the Plan
Sponsor).
8
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
Notes to Financial Statements
December 31, 2001
6. 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 account.
7. Transfer from Other Company Sponsored Plan
Effective August 31, 2000, the Company's Board of Directors voted to terminate
the Amcast Industrial Corporation 401(k) Salary Deferral Plan for Bargaining
Unit Employees, a separate Company sponsored plan. Participants and their
account balances were transferred into the Amcast Industrial Corporation 401(k)
Salary Deferral Plan for Bargaining Units Employees - Plan 2 on that date.
9
Supplemental Schedules
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
EIN 31-0258080 / Plan 021
Schedule H, Part IV, Line 4i - Schedule of Assets Held for Investment Purposes
December 31, 2001
(c) (e)
(a),(b) Description of (d) Fair
Identity of Party Involved and Description of Asset Investment Cost Value
- -------------------------------------------------------- ---------------- ------------ ----------
Shares of registered investment companies
* T. Rowe Price International Stock Fund 3,937 shares 59,056 43,265
* T. Rowe Price New Horizons Fund 4,710 shares 121,943 106,591
* T. Rowe Price New Income Fund 10,756 shares 91,871 93,359
* T. Rowe Price Capital Appreciation Fund 12,426 shares 178,731 181,919
* T. Rowe Price Equity Index 500 Fund 13,848 shares 489,492 427,086
* T. Rowe Price Equity Income Fund 86,058 shares 2,166,597 2,035,276
------------ ----------
3,107,690 2,887,496
Common/collective trust fund
* T. Rowe Price Stable Value Fund 2,283,065 units 2,283,065 2,283,065
Common stock
* Amcast Industrial Corporation common stock 12,837 shares 163,722 69,065
Loans to participants Rates ranging from
Participant loans 7% to 11% 409,454 409,454
------------ ----------
$ 5,963,931 $ 5,649,080
============ ==========
* Indicates party-in-interest to the Plan.
10
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
EIN 31-0258080 / Plan 021
Schedule H, Part IV, Line 4i - Schedule of Assets Held for Investment Purposes
December 31, 2000
(c) (e)
(a),(b) Description of (d) Fair
Identity of Party Involved and Description of Asset Investment Cost Value
- -------------------------------------------------------- ---------------- ------------ ----------
Shares of registered investment companies
* T. Rowe Price International Stock Fund 2,868 shares 48,495 41,639
* T. Rowe Price New Horizons Fund 4,748 shares 133,374 113,435
* T. Rowe Price New Income Fund 6,566 shares 55,165 55,811
* T. Rowe Price Capital Appreciation Fund 8,203 shares 114,133 114,436
* T. Rowe Price Equity Index 500 Fund 12,101 shares 438,815 429,591
* T. Rowe Price Equity Income Fund 91,158 shares 2,323,140 2,248,869
------------ ----------
3,113,122 3,003,781
Common/collective trust fund
* T. Rowe Price Stable Value Fund 2,023,817 units 2,023,817 2,023,817
Common stock
* Amcast Industrial Corporation common stock 9,194 shares 143,670 91,366
Loans to participants Rates ranging from
Participant loans 8.75% to 10.50% 372,323 372,323
------------ ----------
$ 5,652,932 $ 5,491,287
============ ===========
* Indicates party-in-interest to the Plan.
11
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
EIN 31-0258080 / Plan 021
Schedule H, Part IV, Line 4j - Schedule of Reportable Transactions
For the year ended December 31, 2001
(h)
Fair
(b) (g) Value of (i)
Description (c) (d) Cost Asset at Net
(a) of Purchase Selling of Date of Gain or
Identity of Party Involved Investment Price Price Asset Transaction (Loss)
- -------------------------------------------------------------------------------------------------------------------------------
--No Reportable Transactions--
There were no category (i), (ii), (iii) or (iv) transactions during the year.
There were no lease rental activities or expenses incurred with the plan.
Therefore, columns (e) and (f) were eliminated for presentation purposes.
12
Amcast Industrial Corporation
401(k) Salary Deferral Plan
for Bargaining Unit Employees - Plan 2
EIN 31-0258080 / Plan 021
Schedule H, Part IV, Line 4j - Schedule of Reportable Transactions
For the year ended December 31, 2000
(h)
Fair
(b) (g) Value of (i)
Description (c) (d) Cost Asset at Net
(a) of Purchase Selling of Date of Gain or
Identity of Party Involved Investment Price Price Asset Transaction (Loss)
- -------------------------------------------------------------------------------------------------------------------------------
--No Reportable Transactions--
There were no category (i), (ii), (iii) or (iv) transactions during the year.
There were no lease rental activities or expenses incurred with the plan.
Therefore, columns (e) and (f) were eliminated for presentation purposes.
13