Ampco-Pittsburgh Corporation (NYSE:AP) Q2 2019 Results Earnings Conference Call August 9, 2019 10:30 AM ET Company Participants Melanie Sprowson - Director, Investor Relations Brett McBrayer - CEO Sam Lyon - President, Union Electric Steel Corporation Terry Kenny - President, Air & Liquid Systems Corporation Mike McAuley - SVP and CFO Conference Call Participants David Wright - Henry Investment Trust Operator Good day and welcome to the Ampco-Pittsburgh Corporation Second Quarter 2019 Earnings Conference Ca ...

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-898 AMPCO-PITTSBURGH CORPORATION Pennsylvania 25-1117717 (State of Incorporation)(I.R.S. Employer Identification No.) 726 Bell Avenue, Suite 301 Carnegie, P ...

Financial Data and Key Metrics Changes - Ampco-Pittsburgh reported net sales from continuing operations of $107.5 million for Q1 2019, compared to $106.4 million in Q1 2018, reflecting a slight increase [19] - Gross profit as a percentage of net sales decreased to 16.1% in Q1 2019 from 17.6% in Q1 2018, primarily due to lower production volumes for forged engineered products [20] - The company incurred a GAAP net loss from continuing operations of $12.6 million or $1 per common share for Q1 2019, compared to a net income of $1.6 million or $0.12 per common share in Q1 2018 [24] Business Line Data and Key Metrics Changes - The Forged and Cast Engineered Products segment's net sales were flat compared to the prior year, with increased sales of cast and forged rolls offset by a decline in sales to the oil and gas industry [25] - The Air and Liquid Processing segment saw a 5% increase in net sales compared to the prior year, driven by higher sales of air handling units and centrifugal pumps [20][26] - The backlog for the Air and Liquid Processing segment reached approximately $53.7 million, the highest in 10 years, up from $44.4 million at the end of 2018 [15] Market Data and Key Metrics Changes - Sales of forged engineered products to the oil and gas industry decreased by 60% year-over-year, impacting overall sales performance [12] - The company reported a backlog of approximately $349 million as of March 31, 2019, slightly higher than the previous year, with ongoing demand for rolls and additional orders from U.S. Navy shipbuilders [27] Company Strategy and Development Direction - The company announced plans to sell its U.S. cast roll manufacturing facility in Avonmore, Pennsylvania, to improve income from continuing operations by approximately $9 million to $10 million annually [9] - Management is focused on operational improvement initiatives and additional asset restructuring opportunities to enhance efficiency and reduce overhead costs [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the restructuring plan, emphasizing the urgency to demonstrate earnings power and sustainable profitability [31] - The company is currently engaged in a reduction in force as part of its restructuring efforts, which is expected to yield cost savings [50] Other Important Information - The company recognized a $10.1 million noncash impairment charge related to the Avonmore facility, impacting financial results for Q1 2019 [18] - Cash and cash equivalents for continuing operations decreased to $10.4 million as of March 31, 2019, from $19.7 million at the end of 2018, primarily due to a strategic cash management approach [29] Q&A Session Summary Question: What are the gating issues that determine when you close the Avonmore transaction? - Management indicated that the closure timing is dependent on completing customer commitments [32] Question: Any update on the ASW pending sale? - Management stated that they are currently in due diligence with parties interested in the ASW sale [33] Question: Should I assume that the cash proceeds from the Avonmore sale will be minimal? - Management confirmed that the proceeds from the sale are not large and mentioned potential one-time costs associated with winding down operations [35][36] Question: What factors contributed to the positive quarter for forged and cast rolls? - Demand for larger size rolls was strong, and operational improvements led to a 10% efficiency increase, positively impacting the bottom line [44] Question: Are there plans to improve efficiencies in Europe? - Management indicated that while the focus is currently on the U.S., improvements in Europe will be considered in the near future [47]

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-898 AMPCO-PITTSBURGH CORPORATION Pennsylvania 25-1117717 (State of Incorporation)(I.R.S. Employer Identification No.) 726 Bell Avenue, Suite 301 Carnegie, ...

Financial Performance - The backlog of orders as of December 31, 2018, was approximately $343 million, an increase from $325 million at year-end 2017, with about 37% expected to be released after 2019[17]. Company Overview - Union Electric Steel Corporation is one of the largest producers of forged hardened steel rolls globally, servicing various industries including steel and aluminum production[7]. - The company has an equity interest in three joint ventures in China, including a 59.88% interest in Shanxi Åkers TISCO Roll Co. Ltd.[9]. - The Corporation's subsidiaries had 1,922 active employees as of December 31, 2018, with approximately 120 employees from ASW Steel Inc.[21]. Strategic Decisions - The sale of ASW Steel Inc. represents a strategic shift and has been accounted for as a discontinued operation[10]. Product and Market Information - The Corporation's products are custom-engineered and sold to sophisticated commercial and industrial users worldwide[14]. - The company does not rely on any single supplier for raw materials, which are generally available from multiple sources[15]. - The Corporation's operations face considerable competition based on quality, service, price, and delivery in both segments[19]. Environmental Considerations - Environmental control expenditures were not material in 2018 and are not expected to be significant in 2019[20]. Leadership - The Corporation's executive team includes J. Brett McBrayer as CEO since July 2018, with extensive experience in manufacturing and distribution[24].

Financial Data and Key Metrics Changes - Ampco-Pittsburgh Corporation reported net sales from continuing operations of $95.8 million for Q4 2018, down from $103.6 million in Q4 2017, reflecting an approximate 8% decrease [17] - Gross profit as a percentage of net sales decreased to 13.0% in Q4 2018 from 17.9% in Q4 2017, primarily due to lower production levels in the Forged and Cast Engineered Products segment [18] - The company reported a net loss from continuing operations of $41.0 million or $3.28 per common share for Q4 2018, compared to a net loss of $4.2 million or $0.34 per common share for Q4 2017 [20] Business Segment Data and Key Metrics Changes - The Forged and Cast Engineered Products segment saw a decrease in net sales of approximately 8% compared to the prior year, driven by lower shipment volumes for oil and gas products and equipment downtime [22] - The Air and Liquid Processing segment's revenue was approximately comparable to the prior year, but it recorded an operating loss due to a $32.9 million asbestos charge [23] - Backlog at December 31, 2018, was approximately $343 million, an increase of about 6% from $325 million at the end of 2017, indicating improved demand [23] Market Data and Key Metrics Changes - The global short-range outlook for steel demand in 2019 is expected to remain positive, supported by the company's order backlog, although challenges remain due to trade tensions and currency instability [13] - The company noted that the steel industry is facing uncertainty, which could impact future demand [13] Company Strategy and Development Direction - The company is restructuring to return to profitability, including the divestiture of its Canadian subsidiary ASW Steel and pursuing cost reduction initiatives [7][8] - Plans include simplifying the manufacturing flow path to improve operational performance and free up working capital [9] - The focus for 2019 is on execution of the turnaround plan, with an emphasis on right-sizing capacity and reducing complexity in operations [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2018 as a challenging year despite a 9% increase in total revenue from continuing operations, citing higher raw material costs and equipment reliability issues [9][10] - The management expressed confidence in the company's ability to adapt to both higher and lower demand environments, aiming for sustainable profitability [13] Other Important Information - The company recorded a $15 million impairment charge related to the divestiture of ASW Steel, which has been classified as a discontinued operation [15] - The asbestos charge of $32.9 million reflects estimated costs for pending and future litigation, impacting the Air and Liquid Processing segment [16] Q&A Session Summary Question: Concerns about selling the Canadian division and stock performance - Management acknowledged the challenges in the steel industry and emphasized the strategic decision to divest ASW Steel due to tariffs and loss of a key customer [30][46] Question: Complexity in manufacturing processes - Management discussed plans to simplify manufacturing processes to reduce costs and improve responsiveness to market demands [37][40] Question: Asbestos charge and future liabilities - Management clarified the change in estimating future asbestos liabilities, projecting out to 2052 to reduce volatility and provide clarity to investors [54][57]