AP - Earnings call transcript Q3 2020 | Ampco-Pittsburgh Corporation

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Operator

Good day and welcome to the Ampco-Pittsburg Corporation Third Quarter 2020 Earnings Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would like now to turn the conference over to Melanie Sprowson, Investor Relations. ahead. go Please

Melanie Sprowson

Senior Corporation. and today today’s Matt, and Kenny, by Systems to joining Union us Corporation; Mike everyone McBrayer, and Steel Financial Thank Also Electric Sam Treasurer. quarter good of Lyon, XXXX President Liquid on joining McAuley, and Officer; third Chief the joined Terry President, conference us Air Chief our Officer call you, on Executive morning Vice are call. and Brett of I’m President

and Before outside would may turn will that Brett? statements. call release Investors statements CEO. projections replay, forward-looking call not publicly I intentions. of we most on I’ll Securities To significantly or We Commission. in the please ampcopgh.com. to Exchange and corporation’s may participants those of or over statement replay on our filed factors, include do the with section at Ampco-Pittsburgh’s website involve subsequent actual results consult expectations discussed statements any may These those to Corporation’s McBrayer, of to access forward-looking revision from due be of are or of the everyone recently otherwise the filings posted any begin, the or remind update later that, today. in With and the obligation our Brett to release like certain to earnings the webcast objectives, A our corporation’s this website undertake corporation’s that XX-K this financial which matters risks make any differ control. including or uncertainties, call other and projected plans, or comments suggested many variety forward-looking a are of

Brett McBrayer

the past our when strategic even have morning execute as our of our account and our quarter challenging on to take businesses accomplished you, team pandemic. each initiatives. the the over welcome you proud is faced more Their to Thank the impressive our obstacles of continue work each with Melanie. businesses they’ve and into I’m global call. Good work

and forefront doing. our the health COVID-XX the previously, our the has safety stated everything are we’re I into risk at employees of businesses. new As The onset introduced of of

We’re to communities wellbeing families, of we and operate. suppliers, their in customers our employees steps those our and taking and safeguard where the extraordinary the

We rate as our continue for improvements achieved to make toward of the goal injury-free positive in third year lost lowest an quarter. workday the workplace our we

plant Engineered customer in we the As in this shutdowns the meet experienced did year, initiated Products furloughs segment. demand second Cast and Forged reduced to quarter we and the

Processing perform grow structure during also Liquid Air cost remain improve quarter our to and to outages and completed the We efficiency to our business. relentless further segment our Our proactive in maintenance. efforts

and Our their our all new end-market period. per work this opportunities pandemic for COVID-XX team impact members challenging to share $X.XX the attack during diluted continue employees to the our of want for demand. of positive quarter, the to on thank despite of report I We third a share progress. identify per accelerate outstanding earnings

proceeds, gross offering want our raised again capital in balance to thank and shareholders our As improve sheet completed a further begin quarter, during to third $XX.X us our our allowing of your we equity the million support. I footprint. consolidate to for manufacturing result our improvements

XX% halved total ratio by Our debt million. reduced XXXX $XX.X was to or capital from XX, and our debt December

to of end-markets. Electric Lyon, and of our Systems, Air President recovery liquidity Our performance. strength respond well in I’d their has Kenny, in Sam balance operating sheet positioned & and now Union segments’ President like Terry to to their leverage share improvements Steel, Liquid Ampco-Pittsburgh and in significant Terry?

Terry Kenny

Brett. you, Thank

all third during for for division Handling I returned focus. had minor medical I in to pleased at efforts. your at third division after employees recordable the we having a treatment. that and work receiving quarter. the OSHA major quarter. employees safety health you injuries Pumps am our recognize recordable the injuries our remains Thank Air Buffalo division X X Unfortunately, Buffalo to at Aerofin immediately the before, mentioned have we like the and zero employees would OSHA As of

these segment’s As of always, we and injuries put reduce accidents were the year. to the process in sales Air occurring procedures conducted and quarter The and have place the detailed Liquid investigations of changes possibility prior below in these future. Processing third

product from strong process are approximated divisions. for On centrifugal the Orders of X.X% third efforts while air that prior custom for at are of improvement prior year, operations all for of this year XXXX. mix operating handling as the favorable X.X% pumps. a received ahead below to equipment income specialty income successful result year were a basis, However, sales a segment X and quarter date and

While softness orders impacted Aerofin experienced is The the utilization. backlog exchangers and in some Pumps, were for heat Buffalo the on division. by of Handling Air COVID-XX negatively Buffalo and custom building industrial with effect commercial for good

take efforts on our in their aspects products of these providing for thank businesses, I to our customers. concentrate to improving to opportunity would hard work during of continue all We employees efficiency this dedicated our like our quality while all trying to times. our

Brett McBrayer

the Thank over will I turn you, to Sam Terry. Lyon. now call Sam?

Sam Lyon

morning. Good

the for focus Our quarters. has X consistent last remained

Valparaiso, our time operations would accidents Slovenia, achieving recognize I lost Indiana for First, date. year like to to zero our

XXXX. in up than rate lower quarter, recordable overall the remains picked third but Our

Our members. focus will the wellbeing team be our number one always of

detail Mike have continue We will liquidity success and in be which great our more highly McAuley cover here to had on shortly. focused

our our inventory and We reduced have challenged not many in levels to seen teams years.

by I associate biweekly review actions for positions, and Our this drive receivables receivables on date past-due each to collection. in payables. weekly improved We’ve over year area sit to personally sales review meetings calls with million. inventory team our $XX and

over jeopardizing and by These We also have cash our $X actions for strong the resulted and efficient spending shifting through reliable most deferred by capital proactive improved maintenance production performance, without flow in business. to million equipment.

the reduced have align Sweden at the demand we when been our rather schedule out that with a work operating Government demand and a training. reducing adjust ability schedule run ramped daily of UK easily to programs and by than staff production, when the on aimed employed, weeks flexible be to In so keeping output. continue can operations production be Our in returns, people to with whole lower up with demand U.S., taking little increases.

Our is production allows schedule. demand. Slovenian plant currently flex a costs rapidly on This philosophy our operating with X-day running to us and

weeks when shutdown ahead, an to QX our we U.S. in anticipate plants X Looking of prior compared the quarter. additional in

XXXX Sweden complete. plans Our reduction for cost are

plans for XXXX. our tackling We’re

reliability. be savings Our prior number one focus maintenance when equipment on The has delivered over compared to reduced in plants continues spend million to in year. team U.S. and the $X

the reduced improved in proactive costs outages key QX. be a XXXX QX and Sinton, shipping scheduled We our sales, XXXX. to accordingly. We is will apparent to and XX% like Switching from be few This successes. have provisioning in planned the are to about won in manpower the maintenance mill Dynamics our new highlight over also I of Steel for initial can as operating would in XX% cold Texas improvement

Big will We’ve the received part We first We are time oil a with just orders ship Steel. the for orders and market, secured proud into to also be which state-of-the-art gas complex. QX. the River in multiple of

of quarters. recovery realized we signs not The seeing our seen these Even several in are first be customers, will of our orders products, we from the due though have improvements lead-time to volume till like these global close our the for XXXX. through uncertain and entire and Union thanking by to times. the work I’d of in half their team hard Electric second dedication difficult

Brett McBrayer

regarding more Sam. our Financial detail time, our financial share Officer will Chief Mike Thank the quarter. Mike? McAuley, This performance for you,

Mike McAuley

our today. call Form Brett, press my well issued focus and on yesterday, in comments today. in like you, year-to-date just Thank good is to release as the results as the quarter I’d Commentary available current everyone on filed. morning on our XX-Q results earnings to

prior than higher quarter the is negative impacts million shipping for from COVID-XX the industry. volumes for of XX.X% third deferral on year. sequentially primarily This due quarter operations to from of capacity EPS volume the idling XXXX, Forged segment of our to third and on Ampco-Pittsburgh other XXXX of of marginally due quarter third XXXX and Principally initiatives, due net improvement of the third continuing in $XX.X participation. for the which to balance net thank main principally compared EPS, approximately of shipments to of As end the depressed lower the a demand and $X.XX for liquidity completed Air compares lower the customer costs. million Cast sales sales net the XXXX of basis raw impact profit quarter steel of We our of year. net been our engineered quarter profitable Net have per quarter Product Liquid structure Brett quarter Forged global in successful for improved cost The net Ampco’s third offset QX and caused from to continued the Segment the which oil decreased are prior unabsorbed attributable with $XX.X consecutive for the Processing and the lower XX% equity were for aluminum sales share the remain despite XX.X% despite of of Net $XX.X the products primarily a for This positive related the to in lower Engineered our forged markets. to and million. pandemic, attributable the sustained is restructuring for quarter sales and declined position. and of the the experienced Engineered and of response pandemic. indicated, sales segment, the XXXX. overall their material the shareholders we offering, gas in improvement pandemic, versus the Xth sheet and compared of of percentage quarter partly for million. Cast this the XXXX the to third benefiting and X income, enhanced the pandemic was third for the Gross a With along temporary principally XXXX to operations net which our from markets, a sales by conditions flat-rolled significantly by of XXXX was Product to implemented completion to as costs contraction magnitude reduced deliveries themes continuing of $XX.X

operations the restructuring to $XX.X primarily profit periods. of decline and gross Air quarter from of year quarter continuing expenses $X.X compared year million carrying with and favorably the and expense amortization prior for of Pennsylvania from operations was approximately $X.X For to in which for XXXX the segment, between comparable of in corporation $X.X and million cast driven the million Avonmore, for quarter and Processing related Selling The sales recorded declined of $X.X of was roll continuing costs the the was third XXXX from the third administrative by excess the compared income XXXX The $X.X prior lower commissions’ quarter. third million, quarter of Liquid in million the compared quarter XXXX. Prior $X.X flat million benefits initiatives implemented. included the Depreciation million. costs restructuring year. divested approximately of facility loss expense

current joint reduce the costs, SG&A although quarter downtime from XXXX by At million net quarter the net prior share improved of $X.XX the of due $X timing Other year effects quarter income corporation to impacts expense, the primarily lower these lower year, quarter bottom the income net the share. of the Product operations per expense which to Engineered of in Chinese and XXXX material year to Additionally, Forged line, quarter benefited reported the Cast third the volumes per unfavorable a offset absorption or of $X.X diluted diluted the share of XXXX, ventures. third $X.XX included of Ampco-Pittsburgh from loss for and dividend raw income net the corporation’s or a plant the and current one due loss pandemic compared diluted approximately to shipment of from driven per to of segment. net for $X.XX million in third compared discontinued for were attributable

Forged and segment, approximately declined the forged some XX% a Product for as engineered and mix reduced relatively volume QX highlights $XX.X are other were orders million Engineered in of of of significantly XXXX indicated, demand shipments due for Engineered for to segment of And lower customer regarding In both of prior net year. of result when business year Cast and segment pandemic. forged sales quarter third Operating as cast Product versus the results the quarter-to-quarter. deferral and XXXX comparable mill results. Here Pricing to rolls, response product improved products. Cast compared prior to Forged I the

impacted million [current cost commissions restructuring forged year] a and the costs structure adversely Liquid attributable the segments engineered and of lower material in were benefited of was each sales expense segment net lower efforts, period sales. some by the quarter operating prior product year and of third the The quarter prior three quarter, the XXXX lower with While slightly during in Processing segment, the quarter raw to to income shipments reduced comparable with of $XX.X marginally lower Processing the volume the from year. of XXXX of associated third [ph] the Liquid Air businesses. In sales was comparable for volume below lower Air

XXXX of million for sales and of $X.X due by primarily $XX.X by XXXX. to million at XX, but million here XXXX, but quarter. Accounts were are June compared we million XX, of September million items. or for at XX, elimination growth. usage well Next, for Accounts decreased compared working payable of initial XXXX revolver have balance trade decreased the primarily XX, and operating million June to XXXX. Forged XX, net results, December in inventory as $X.X Cash and at equivalents compared balance, at $X.X and increased decreased compared million year-to-date, with for $X sheet December $XX.X cash XXXX, September the expenditures XXXX million consistent lower increased which to lower facility of XXXX the the compared $XX.X from equity from Total XXXX. year, to modest our capital in million, of XX, XXXX, and XXXX Engineered The December million few Ampco Product continuing slightly $XX.X million million credit million debt borrowings at a $XX.X XX, June the $XX.X segment. of increased XX, to market Cast compared December to offering. $XX.X to receivable XXXX third operations were $XX.X to lower at XX, $X.X to XXXX, XX, XX, of increased or the and to the from compared Drawings zero $XX.X XXXX by September investment improved million million, XX, through XX, sales a to approximately compared XX, $X.X cash decreased December the and the decreased down million, quarter at Capital June XX, $XX.X balance September improved slightly the and by decreased December revolving the balance. current is XXXX, XXXX, on collections. related XX, September XXXX, XXXX, Receivables XX, the Inventories reflects September contraction as proceeds XX% XX% experienced compared attributable June

at to remaining will cash September December now the industrial During closing in turn has some and the remaining to availability call bond $XX QX, we also At on off to over approximately compared availability improvement Brett retired revenue XXXX. pay a on approximately $XX borrowings Brett? remarks. million it the XX, for credit facility. back XX, $X.X XXXX, the the of corporation revolver the There of addition an is million million. I balance,

Brett McBrayer

I of Thank am employees third how of obstacles deliver our you, positive the proud results and difficult they Mike. face in for to very quarter. the extremely

questions. excited We you. aggressive Thank take further will We’ll now about take improve to steps our I’m profitability. Ampco-Pittsburgh’s your future. continue to

Operator

to question-and-answer time, At our session. the pause begin this now will we assemble We [Operator will momentarily Instructions] roster.

comes Justin G.research. with go first from ahead. Our question Please Bergner

Justin Bergner

Good Hey, good morning, Mike. Brett. morning,

Mike McAuley

Good morning.

Brett McBrayer

Justin. morning, Good

Justin Bergner

Two questions.

more are on Sort for a in CapEx of your XXXX normalized basis? expectations what and

Mike McAuley

for or would XXXX, normally we thereby cash and Yeah, indicated, our equipment, would been most Sam in channel as reducing million, business operate kind Mike. something and in and got efficient if $XX usual. we’ve running been equipment on than But flow. to to lower CapEx. typical look really as our range It’s maybe but most kind we And sustaining bit a Justin. plan indicated, Sam back to of of of production he’s some be finding the year the which we’ve are needs. thoughts, ways spend Hi, focused a We of

in flexibility especially we equity now. creative, as very the now, the of But up So to move prior we we’ve to the through been forward, offering. conclusion more period which have

Justin Bergner

And I’m don’t Great, sorry, – helpful. that’s where’s I know…

Brett McBrayer

activities that And us we’ve this some was move with raise, initiated talked further Justin, we going for the our continued add, key that the process to down the we’re a to about footprint obviously on equity I is our in us U.S. step the in of consolidation in very path. focused here that, manufacturing of

now. and are will on exactly looking focused play excited We’re something we that’s But about. that out right keenly spin how

Justin Bergner

second my answered comment actually your there. That question, great. Okay, additional

thanks So my question. for taking

Operator

Our with Henry Investment Wright David ahead. next from go comes Trust. question Please

David Wright

morning. the there. ratio debt improvement next Good foundation and way the corporation, have balance to [pre-cent] turned [ph] to really job sheet I step, the availability. the sorry. Yeah, the you’ve the It the and good so equity around, commend helps for

Mike McAuley

Yeah, David. thanks,

Brett McBrayer

Thank you, David.

David Wright

Do any and on you has business? combination American Cleveland-Cliffs roll if any, what ArcelorMittal’s impact, steel comments the of North proposed how that on your operations, have

Sam Lyon

Yeah, David, have you which Steel, the think prior. at Cleveland-Cliffs it’ll And have any well We bought good we this relationships impact. know, with AK is AK Sam. Steel very purchasing as ArcelorMittal don’t as as group

we positive to expect really we see seen impact, we haven’t nor do or see So, any really don’t anything, negative. –

David Wright

on staying of because on And that of the Okay. booking deferrals new down and backlog order pandemic. vein, the is of orders, lack

sort timing business. you been backlog potentially how have new for shortfall to Some lost from versus Is steel much capacities down, lines permanently of built. being COVID of is things characterize the some shut it possible just

Sam Lyon

this orders fact, we’re customers had Majority States very next a QX X that I automotive uncertainty, word at in would of our while same over our week, for going or largest QX until entire and is orders businesses which mean, to the the year to next we though as in of X of XX% they’re of that happening is Europe. understood. last hate year, running uncertainty. running normally minute. the but They’re largest higher. But the have is at timing, are the the the United get use What from in of – and matter it holding pre-COVID I U.S.

year. barring the extremely the been Europe versus hearing total we’re rebound. favorable to things U.S., plan strong for order our book in And shutdown have there’s or we next in what So second a

on we’re So depending and more virus. downside, seeing upside the happens what with

David Wright

have mentioned, next kind obviously, from is week? long which my you’ve between in into it we’ve correlation, time, the this you a increase business getting utilization orders orders happening you’re Okay. year’s lead Is is, and result quite correlation since seen the was, goes got where any And coming its next quarter, prices more up more week. of next capacity market short-term Is more coming in there any that this as quarter each on beginning little a of weekly production of steel you there roll that, back HRC what’s business in question, kind impact and of bookings? rolls had an bit the for

Sam Lyon

favorable rolls, back-up the look from rolls would rolls, you difference year, down, items and up. Not I’d the very short-term at the while are but next those work of community more – seen. some are intensive comments orders not purchasing bookings, have we’re when rolls, we the more the biggest more that capital will order say the beginning larger that the normally seeing fast And they need,

long, for because on you roll to have though, go so the have only can run to actually a that back-up mill. So

the working the items. we’re items, in So the – a a out rebound actual higher of there’s capital a intensive seeing but push roll deferral or been

David Wright

Okay.

in Let me more here. squeeze one

get objectives raise the pieces to new or of the of was equipment. to of X X capital One try

any you having is guess, long I have be that times. what with capital doing But those, of some the completed lead And might update on there raise?

Sam Lyon

lead builders of would But kind looking a it. working looking capital at and a would doing at we with what times. place and where we we study, We’re machine are buy actually

that we going a And down in have path. so order but yet, place we’re

David Wright

Thanks Okay. much. very

Sam Lyon

Thanks, David.

Operator

next ahead. Our Crawford United. Powers Please with Brian from question comes go

Brian Powers

CapEx expenditures. The $XX spending Mike. over Thanks. to million company will the at on years. Hi, next per current Hi, the Back run capital research indicates Brett. about X that year

be wanted your on color Just if how get it’s and quick current got some that that money to whether correct, follow-up. a businesses, they’ve in and spent will is

Mike McAuley

you. thank Brian, Yeah,

of plan XX you’re level of off this that part think business focus something sustaining right averaged CapEx, historical a very make knew equity think, some in some like just bounced back maybe we year, tool of I specific XX. it did of for And looking raise use have I machine – about but proceeds We acquisitions. have of at at is, strip XX kind CapEx. around, kind COVID. on the And that to our you’re we yeah, like before we about XX, look

So we’re in that ballpark.

we as of But also multipurpose extra – looking indicated, which investments needs, that. course then that additional on kind an going about layer to sustaining add top have to beneath CapEx alleviate not we right an you’re of and would And on to the handle ambition focus would then, Brett we CapEx So but of the our if machine that of them forward only did sustaining new on requirements it. some tools, that. depending modernize be

Brian Powers

was next million it – as color over If opposed and like $XX to that’s to on where be make million $XX backwards, but million looks years. ability forward whether limit going say to acquisitions? research looking at will X any that equity Because Okay, will $XX so going spent to helpful. between the that’s somewhere up I looking that the if company’s the

Brett McBrayer

that going The Products is we’re going go Forged majority focused although, to after. group, Systems defined have Air Brett. to and clearly the some Engineered we Liquid opportunities capital be is This in Cast of and group towards the the

from majority done of that piece standpoint. through a I into and is the and want creates productivity the improvements – kind Forged the really team Products, to in back that the the Cast the efficiency capital be just reiterate, has on normal Ampco-Pittsburgh significant to Engineered something again, new will changes So, for work, sustained

on part we now relied to and past machines to in the products. goods that manufacturer heavily have We

focus better really have past. a to the the able were we from we so on needs in higher efficiency machines, running our perspective. than before changed And those capital And that’s

so to what positive the and equation change make push on looks as that we’re continues speak. And team for progress like we reinventing baseline And to continue us.

run be run that So then, what But successful. we machines you can necessary. allow are to much grow that services only backup to And on the of sitting need have opportunity more pull modernization, tremendous the rapid a to into amount leap to we is the that for goal consolidation, idle, from back a big pace. take next the a focuses to cost structure us perspective at now

Brian Powers

helpful. ongoing then of to acquisitions? expenditures, future with cash if room there’s level plans in That’s it piece that I guess the of if going – for the is, capital last any

Brett McBrayer

within exist believe, we’re so opportunities current now our there are opportunities, heavily current with focused are we asset see but not we what at do this opportunities our time can look we great, base those we at will to that much potentially, The this And close we still on asset in base. right pursuing in maximizing would so point business. [indiscernible] even

Brian Powers

my you Thank Great. questions. much very for taking

Operator

[Operator question go from Rodriguez ahead. Stonegate with Marco Markets. Please next Capital Instructions] Our comes

Marco Rodriguez

our tune the you manufacturing specific projects Can fruition? if on footprint, purchases? the taking you effective other and it with And maybe stock] you again, perhaps to accelerate little was Good for some could little just itself? of kind for and expect what Or expecting then more expectations of then some come making and come of issues more refresh a circling the these for any [finer capital capital my and through? [ph] kind the you were raise down will when put equipment these morning, from on can initiatives you or the around questions. wondering a where aspects everyone. – talk you there the to any back I timing other Brett, Thank things you’re a restructuring could if that memories, plan to raise bit of

Brett McBrayer

part of the repeat again? that last you Can question

Marco Rodriguez

can [taking] the Other the from restructuring you where sort months, Yeah. implement of efforts kind are footprint, to aside improve are try XX the in to the your of accelerate in equipment capital you months initiatives new or remind here and obviously, from, initiatives, those raise us shrinking XX of manufacturing profitability? the next [ph]

Brett McBrayer

Sure.

So the facilitate pulled the are reason the we’ve the lead orders consolidations, times part of now. multipurpose the not on why question acceptable final and that machines to for right trigger not the

we’re at Sam different allow talked accelerate capital about, so, looking iterations And faster. some us of investment to to

be on So are timeline. a We’ve the with achieve it’s – again, critical is time period machine a these determining negotiations but the these to able builders consolidation, going be targeted of to timing. manufacturers support to X-year part going to dependent the what do machine the

the business. out continuous improving of new to beyond different the ways work terms Marco, figuring In we’re assets initiatives, run other doing, obviously, place, on the current we and in have

of inventory in a level shrinking not before about is had our past. the we’ve levels Sam talked the examples One to

out We’re to before, takes our to we to our it wouldn’t sell, products that the be or able able because capture of now to taking a time And through shorter the for capture steps process. businesses, flow-time not, upside accelerate better, equipment has to our us – able just allowed that’s product operations as through the to but and develop if quicker. good, in move plant and actually just much goes

going to excited that see coming we mentioned business. piece that grow We’ve business, win in moving We been cost restructuring, orders projects able be grow with The continue Systems Air to win for segment, that are some us to we that then, able important FEP might are that be our not just is customers And and that engaged about want the costs we segment market that be in forward. are opportunities our as to our to to and of – in we Liquid able now. past that forging And are the opportunities. some side, to the position. – we side in of otherwise some in current that more open-die because around opportunities new have of before the forging to other open-die

of upfront So right guess, those now. some are I that are ones the,

Marco Rodriguez

the help extended And can those in is are what as lead pretty as look just idea us they And right you Understood. normal? now. time far that now, of you mentioned understand an then, issues right us what kind like? you of give terms Can

Sam Lyon

custom is then And really machine-building this machines, mean, actual lot top that’s these there’s of upfront. I the Sam. on and of a that. engineering constraint Yeah, the

mean, custom for delivery X.X So, a of out they’re I X, years machine.

Marco Rodriguez

time? lead or And lead that’s normal the the time extended that’s

Sam Lyon

this, the XX extended so looking we And we almost looked had a to what originally probably, That’s more lead thinking were time. longer XX at. were at when initially months, year we than

Marco Rodriguez

then in customers levels. COVID I look on you and again, headwinds the its could was terms here, your give timing the impact customers. Ford’s your rolls of But And are like at a it. And perhaps inventory backlog, us understand their there and I particular some wondering of if sense obviously inventory Got understand might what your of issues.

around us the You what you customers. your coming give X like, might could year? expectation QX on of you if think Any mentioned then sense, and largest backlog you at would see maybe sort QX the color at that this be end if from orders also look expecting call of a the that, that of here helpful. growth you’re least fiscal But of this fiscal, some versus

Brett McBrayer

conserve don’t are trying item. rolls they’re buy higher. forward-looking obviously because would expensive know. it They expect I money, don’t But I to to these to it’s be Well, like an if comments, because

Nucor, rate. running down, listened a down automotive an So speaks Dynamics, [this come were where people, they’re And they to] XX%. of if lower then X not or kind for Steel months, [ph] utilization they rolls. consuming any in excess But they’re of shut you’ve to back they’re shut while

the higher utilization, opposed XX%, guys than less running are at So is is of well, should they’re European and much higher what even the U.S. if down ready larger customers demand a to expected. though continue, to as that for our as orders. we they be and then things that’s – saying, they’re seeing And European true more,

Marco Rodriguez

Thanks much your Appreciate it. guys. Got time.

Mike McAuley

you. Thank

Brett McBrayer

Thanks, Marco.

Operator

will also conference Thank today’s attending question-and-answer which you concludes This today’s session, conclude our call. for presentation.

disconnect. may You

Ampco-Pittsburgh (AP) 17 Nov 202020 Q3 Earnings call transcript