Ampco-Pittsburgh's Q4 net loss widens on UK exit, asbestos charges

Overview

• US specialty metal products maker's Q4 revenue rose yr/yr, adjusted EBITDA declined from prior year

• Company posted large GAAP net losses due to UK facility exit and asbestos-related charges

• Q4 adjusted EBITDA declined yr/yr

Outlook

• Company expects positive annual EBITDA impact of $7 mln to $8 mln from UK facility exit

• Ampco-Pittsburgh sees growth potential in Air and Liquid Processing segment

• Company expects earnings power improvement as steel market recovers

Result Drivers

• PRODUCTION CURTAILMENT - Lower overhead absorption in Q4 due to fewer production days and lower demand from tariff impacts on the steel market, as well as lower roll volumes and ramp-up of Sweden facility

• UK FACILITY EXIT - Significant non-cash charges from the exit of the UK cast roll facility and a non-core steel distribution business weighed on quarterly results

• AIR AND LIQUID PROCESSING GROWTH - Higher shipment volumes in Air and Liquid Processing segment supported revenue growth

Company press release: ID:nBw1HWtKNa

Key Details

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