CARNEGIE, Pa. - Ampco-Pittsburgh Corporation (NYSE: AP), a global provider of engineered specialty metal products and equipment, announced today that its subsidiary, Buffalo Air Handling, has received an $8.7 million order from a major pharmaceutical company for a custom air handling project. The order, which represents the largest from the pharmaceutical sector for the company, is scheduled for delivery in 2025.
David Anderson, President of Air and Liquid Systems, the parent company of Buffalo Air Handling, highlighted the significance of the order as a testament to the market's trust in their high-end custom products. He also referenced the recent expansion of their manufacturing capacity in central Virginia in the summer of 2023, which was a strategic move to address the increasing demand for their products.
Buffalo Air Handling has over a century of experience in producing custom air handling systems. Anderson expressed confidence in the future, suggesting that the company's best years are still ahead.
Ampco-Pittsburgh, through its subsidiaries, serves a diverse range of industries worldwide, including the steel, aluminum, oil and gas, and plastic extrusion sectors. The corporation operates manufacturing facilities across the United States, Europe, and participates in joint ventures in China, with sales offices in North America, Asia, Europe, and the Middle East.
The information about the order and statements from the company's president are based on a press release statement. The forward-looking statements included in the press release indicate the company's expectations for future performance and market trends. However, they are subject to various risks and uncertainties that could affect the company's actual results.
Investors are reminded that such forward-looking statements are not guarantees of future performance, and actual outcomes may differ materially due to a variety of factors, including economic conditions, industry demand, and operational challenges.
In other recent news, Ampco-Pittsburgh Corporation reported a significant increase in its second-quarter earnings for 2024. The company's income from operations reached $5 million, a 3.5-fold rise from the previous year, primarily due to new equipment utilization in the Forged & Cast Engineered Products segment and a record order intake for the Air & Liquid Systems division. Net income stood at $2 million, or $0.10 per diluted share. Despite a slight decrease in net sales in the Forged & Cast Engineered Products segment, the Air & Liquid Processing segment saw a 19% revenue increase year-over-year. The company's overall net sales for the quarter were $111 million, marking a 3.5% increase from the same period in the previous year. These are recent developments showing the company's strong performance. However, the company anticipates a weaker third quarter due to scheduled shutdown periods. Despite this, optimism remains for the underlying business fundamentals, with the Forged & Cast Engineered Products segment expecting stronger order intake in the latter half of the year and the Air & Liquid Processing segment predicting sustained strong demand into 2025.
InvestingPro Insights
Ampco-Pittsburgh Corporation's (NYSE: AP) recent announcement of securing an $8.7 million order from a major pharmaceutical company showcases the company's ability to attract significant contracts within the industry. This development comes at a time when the company's financial metrics reflect a mix of challenges and growth potential.
InvestingPro Data indicates a market capitalization of $38.58 million, signaling a relatively small player in the industry. Despite not being profitable over the last twelve months, Ampco-Pittsburgh has managed to maintain a gross profit margin of 17.48%, with a gross profit of $75.42 million during the same period. This suggests that, while the company faces profitability challenges, it is still able to generate a significant margin on its sales.
Additionally, the company has seen a strong return over the last three months, with a price total return of 66.98%. This could be indicative of investor confidence in the company's growth prospects or strategic initiatives, such as the recent expansion of their manufacturing capacity.
InvestingPro Tips highlight that Ampco-Pittsburgh operates with a significant debt burden and is quickly burning through cash, which are important considerations for investors. However, it's noteworthy that the company's liquid assets exceed its short-term obligations, which may provide some financial flexibility in the near term. The company does not pay a dividend to shareholders, which could be a reflection of its focus on reinvesting earnings into the business to fuel growth and manage its debt.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/AP, which can provide further insights into Ampco-Pittsburgh Corporation's financial health and investment potential.
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