CARNEGIE, Pa. – Ampco-Pittsburgh Company (NYSE: AP) disclosed at this time that its subsidiary, Union Electrical Metal Company, has secured contracts to provide rolls for 2 new rolling mill tasks. The offers, valued at roughly $11.7 million, will help mills in Mexico and Scandinavia, with deliveries slated for the primary half of 2025.
Ternium Mexico S.A. de C.V., a distinguished metal producer in North America, has chosen Union Electrical Metal to offer an preliminary mill fill of rolls for its new chilly mill in Pesqueria, with a contract price round $6.7 million. Moreover, a serious European OEM mill builder setting up a brand new facility in Scandinavia has additionally contracted Union Electrical Metal for rolls, a deal valued at roughly $5.0 million.
This announcement comes alongside the corporate’s replace on its gross sales order backlog. Ampco-Pittsburgh’s Air and Liquid Processing phase reported a record-breaking quarter ending June 30, 2024, with new orders surging over 50% from the earlier quarter. This marks the best quarterly order consumption within the phase’s historical past, attributed to robust demand within the Pharmaceutical and U.S. Army markets.
Brett McBrayer, CEO of Ampco-Pittsburgh, commented on the roll contract wins, emphasizing Union Electrical’s dedication to delivering high-quality merchandise to the worldwide metal and aluminum markets. McBrayer additionally highlighted the corporate’s elevated market presence, due to strategic investments in gross sales and manufacturing capability.
The company tasks its complete backlog for the quarter ending June 30, 2024, to be within the vary of $360 to $365 million, representing sequential development of three.2% to 4.6% in comparison with the earlier quarter.
Ampco-Pittsburgh Company, via its subsidiaries, is understood for manufacturing specialised metallic merchandise and tools utilized globally. Its working subsidiary, Union Electrical Metal Company, is a number one producer of solid and forged rolls for the metal and aluminum industries. The company additionally produces air and liquid processing tools and operates manufacturing services in america, England, Sweden, Slovenia, and joint ventures in China.
The knowledge on this article relies on a press release assertion from Ampco-Pittsburgh Company.
In different latest information, Ampco-Pittsburgh Company disclosed its Q1 2024 monetary outcomes, revealing a 5% year-over-year enhance in web gross sales to $110.2 million. Nonetheless, operational challenges, together with a hearth at a overseas forged roll facility and an unfavorable product combine within the Air and Liquid processing phase, led to a web lack of $2.7 million, or $0.14 per share. The corporate anticipates these points to be resolved within the second quarter and expects enhancements in market situations in North America and Europe, together with greater pricing to counterbalance cargo quantity declines for the 12 months.
The corporate’s blended first quarter additionally noticed a decline in demand within the Cast and Forged Engineered Merchandise phase in Europe, whereas the Air and Liquid Programs phase’s income grew by 18%. On the finish of the quarter, the overall backlog was $348.8 million, with declines in each main segments. Regardless of this, the corporate maintained a stable liquidity place with $10.8 million in money and $23.2 million in undrawn revolving credit score facility availability.
These latest developments point out an anticipated enhance in exercise and outlook in North America and Europe, with quantity development anticipated within the second half of 2025, pushed by elevated roll buys from prospects. Regardless of the challenges, Ampco-Pittsburgh stays optimistic in regards to the future and continues to deal with growing profitability and output in key segments.
InvestingPro Insights
Ampco-Pittsburgh Company’s (NYSE: AP) latest contract wins underscore its ongoing efforts to increase its world footprint and strengthen its order backlog. These optimistic developments could also be of explicit curiosity to traders, particularly when contemplating the corporate’s present monetary metrics and market efficiency. In response to InvestingPro information, Ampco-Pittsburgh has a market capitalization of 15.1 million USD, indicating a comparatively small participant within the trade.
The corporate’s Value / Guide ratio, as of the final twelve months main up to Q1 2024, stands at 0.27, which means that the inventory could also be buying and selling at a low valuation relative to the corporate’s e book worth. This might be a focal point for worth traders in search of potential alternatives. Furthermore, regardless of a difficult interval with a one-year price complete return of -76.05%, the inventory’s latest efficiency has proven a slight uptick with a 1-week price complete return of 1.85%.
InvestingPro Suggestions spotlight that Ampco-Pittsburgh is working with a big debt burden and isn’t worthwhile over the past twelve months. These components are essential for traders to contemplate, as they might affect the corporate’s means to capitalize on new contracts and preserve monetary stability.
For these inquisitive about a deeper analysis, InvestingPro provides extra recommendations on Ampco-Pittsburgh’s efficiency, together with insights on money move and income valuation multiples. There are at present 13 extra InvestingPro Suggestions accessible, which may be accessed via the devoted web page for Ampco-Pittsburgh at https://www.investing.com/professional/AP.
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