Following the release of preliminary results for the second quarter of 2024, shares of Ampco-Pittsburgh Corporation (NYSE: AP) exhibited a significant upward trend during the previous session concluding at $1.23, marking an impressive increase of 60.81%. The bullish momentum is seemed to be stabilizing the AP stock this morning with a slight fall of under 1%.
Financial Projections
Ampco-Pittsburgh (AP) announced preliminary estimates for the fiscal quarter ending June 30, 2024, alongside an update on its current liquidity position. Net sales for the quarter are anticipated to range between $107 million and $112 million. Expected net income is projected to be between $1.1 million and $2.1 million, translating to $0.05 to $0.10 per diluted share.
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Liquidity and Contract Updates
At close of the Yesterday’s activity, liquidity position of Ampco-Pittsburgh demonstrated modest improvement compared to March 31, 2024. The company’s cash on hand was approximately $8.6 million, with $27.2 million available through its revolving credit facility.
In a notable development, Ampco-Pittsburgh announced that its wholly-owned subsidiary, Union Electric Steel, has been selected to supply the initial provisioning (mill fill) of rolls for two new rolling mill projects currently under construction.
Deliveries are scheduled to start in the first half of 2025, and among the roll contracts is one for a new cold mill for Ternium Mexico S.A. de C.V. – Pesqueria, a well-known steel manufacturer in North America. The estimated value of this deal is $6.7 million.
Furthermore, a significant European OEM mill builder has awarded Union Electric Steel a contract to provide rolls for a new facility that it is building in Scandinavia. Deliveries for this project, which has an estimated contract value of $5.0 million, are similarly anticipated in the first half of 2025.
Record-Setting Sales Orders
In addition, Ampco-Pittsburgh gave an update on the backlog of sales orders, stating that during the quarter that ended June 30, 2024, the Air and Liquid Processing division had a record number of new orders. The full-quarter operation of new gear in the company’s U.S. forged division during Q2 was very beneficial.
