CARNEGIE, Pa. - Ampco-Pittsburgh Corporation (NYSE: AP) has released preliminary financial results for the second quarter ended June 30, 2024, projecting an increase in net sales and a significant improvement in net income compared to the previous quarter. The company anticipates net sales to range from $107 million to $112 million, consistent with the $107.2 million reported in the same quarter of 2023, and marking a slight increase from the $110.0 million in the first quarter of 2024.
The company's income from operations is expected to be between $3.8 million and $4.8 million, a notable rise from the $3.3 million in the second quarter of the previous year, which included a $1.9 million foreign energy credit. This also represents a substantial improvement from the mere $0.1 million in the first quarter of 2024.
Net income for the quarter is projected to fall between $1.1 million and $2.1 million, or $0.05 to $0.10 per diluted share. This forecast is significantly higher than the $0.4 million, or $0.02 per diluted share, reported in the second quarter of 2023, which also benefited from the aforementioned foreign energy credit. It marks a turnaround from the net loss of $(2.7) million, or $(0.14) per diluted share, in the first quarter of 2024.
As of July 9, 2024, Ampco-Pittsburgh's liquidity has modestly improved from March 31, 2024, with approximately $8.6 million in cash on hand and $27.2 million available in its revolving credit facility. CEO Brett McBrayer commented on the company's performance, citing the recovery from a foundry fire in Sweden and the benefits of new machinery in the U.S. forged operations for the improved margins, particularly in the Air & Liquid Processing segment.
Despite excess capacity in the European cast roll business, the company does not foresee any new significant headwinds that could materially affect its operations. Ampco-Pittsburgh's results are preliminary and subject to change, as the financial closing procedures for the quarter are not yet complete. The company plans to file its official Quarterly Report on Form 10-Q around August 12, 2024.
Ampco-Pittsburgh Corporation specializes in engineered, high-performance specialty metal products and customized equipment for various industries worldwide, including steel and aluminum production, oil and gas, and air and liquid processing. This article is based on a press release statement from Ampco-Pittsburgh Corporation.
In other recent news, Ampco-Pittsburgh Corporation announced its Q1 financial results for 2024, reporting a 5% rise in net sales to $110.2 million compared to the same period last year. Despite the increase, the company recorded a net loss of $2.7 million, or $0.14 per share, due to operational challenges such as a fire at a cast roll facility and an unfavorable product mix. The company is hopeful for improvements in market conditions in North America and Europe, along with higher pricing to offset shipment volume declines for the year.
The Air and Liquid Systems segment experienced an 18% revenue growth, while the Forged and Cast Engineered Products segment saw reduced demand in Europe. The company's total backlog at the quarter's end was $348.8 million, with declines in both major segments. Ampco-Pittsburgh's liquidity position included $10.8 million in cash and $23.2 million in available undrawn revolving credit facility.
These recent developments indicate a mixed performance for Ampco-Pittsburgh, with operational setbacks and market challenges. However, the company's outlook remains positive with expected improvements in activity in North America and Europe, and anticipated higher pricing to counterbalance lower shipment volumes for 2024.
InvestingPro Insights
Ampco-Pittsburgh Corporation (NYSE: AP) has shown resilience with its latest financial projections, which signal a recovery in net sales and net income. However, a closer look at the company's performance through the lens of InvestingPro data and tips reveals a nuanced picture.
With a market capitalization of just $15.37 million, Ampco-Pittsburgh is considered a small-cap stock, which typically carries higher risk but also the potential for significant growth. The company's Price / Book multiple stands at a low 0.27 as of the last twelve months ending Q1 2024, suggesting that the stock may be undervalued relative to its assets. This aligns with one of the InvestingPro Tips, which points out that the stock is trading at a low revenue valuation multiple.
On the downside, the company's P/E Ratio is negative at -0.51, reflecting that it has not been profitable over the last twelve months, a concern also highlighted in the InvestingPro Tips. Additionally, the Price Total Return over the last year has declined by -76.1%, indicating that investors have seen a significant erosion in value. This is consistent with the company's challenges, including a significant debt burden and rapid cash burn, which are areas of caution for investors according to InvestingPro Tips.
Despite these challenges, the company's recent performance suggests some positive momentum. For investors interested in a deeper analysis, there are 12 additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/AP. For those looking to subscribe to InvestingPro for a comprehensive investment analysis, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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