Financial Performance - Net sales for 2023 reached 32,151 compared to 303,761, representing 72% of total sales, while the Air and Liquid Processing segment accounted for 34,574 in 2023, compared to an income of 29,084 [82]. - Net loss attributable to Ampco-Pittsburgh was (2.04) per share for 2023, compared to a net income of 0.18 per share in 2022 [93]. - Total net sales for 2023 reached 390,189 thousand in 2022 [120]. - Operating costs and expenses totaled 387,411 thousand in 2022, reflecting a significant increase of 17.9% [120]. - The net loss for the year ended December 31, 2023, was 3,980 thousand for the year ended December 31, 2022 [128]. Backlog and Orders - The backlog of orders as of December 31, 2023, was approximately 369.0 million at year-end 2022, with a 13% expectation of backlog release after 2024 [24]. - The ALP segment's backlog increased by approximately 247,603, while the Air and Liquid Processing segment had a backlog of 378,912 for the Corporation [82]. - Backlog increased to 369,018 in 2022, with approximately 13% expected to be released after 2024 [86]. Employee and Labor Relations - Approximately 58% of the Corporation's 1,697 active employees are based in the United States, with 31% covered by collective bargaining agreements [26]. - The company faces potential disruptions to operations due to industrial actions or work stoppages related to collective bargaining agreements with unions [51]. Financial Position and Liquidity - The company has a 1,449 during 2023, ending the period at 8,735 at the end of 2022 [105]. - The Corporation's total assets increased to 502,774,000 in 2022, reflecting a growth of approximately 12.5% [117]. - The Corporation's total shareholders' equity decreased to 113,396,000 in 2022, a decline of approximately 37% [118]. Costs and Expenses - Selling and administrative expenses rose to 43,527 (11.2% of net sales) in 2022, mainly due to increased employee-related costs [88]. - Interest expense increased to 5,434 in 2022, attributed to higher average interest rates and increased borrowings [89]. - The charge for asbestos-related costs in 2023 was (2,226) in 2022, reflecting increased estimated settlement costs [88]. - Operating costs and expenses totaled 387,411 thousand in 2022, reflecting a significant increase of 17.9% [120]. Market and Economic Factors - The FCEP segment's sales are significantly influenced by the global steel and aluminum industry, which may experience cyclical downturns affecting demand and profitability [32]. - Excess global capacity in the steel industry may lead to lower prices, adversely affecting sales, margins, and profitability [33]. - Increases in energy and commodity prices, along with geopolitical factors, have raised costs and may disrupt production, impacting profitability [38]. - The company is subject to tariffs of 25% on primary steel imports and 10% on primary aluminum imports, which could reduce margins and market share [46]. Cybersecurity and Risk Management - Cybersecurity risks pose a significant threat to the company's financial condition and operations, necessitating robust risk management and incident response strategies [60]. - The company has established a Cybersecurity Materiality Assessment Team to evaluate the potential impact of cyber incidents on operations and financial position [66]. - The Audit Committee oversees the Corporation's cybersecurity program, with regular updates provided to senior management regarding cyber risks and incidents [70]. - The Corporation has not experienced any known material breaches related to cyber-attacks, but recognizes cybersecurity as a top risk management priority [68]. Environmental and Regulatory Factors - The Corporation's management anticipates that expenditures for environmental control matters will not be material in 2024 [25]. - The company is subject to increased costs and operational impacts due to environmental regulations and climate change-related risks, which may affect manufacturing processes and material availability [50]. Pension and Employee Benefits - The Corporation's long-term rate of return on domestic pension plan assets is estimated at 7.70%, while actual returns approximated 12.41% for 2023 [111]. - The fair value of the defined benefit pension plan assets was 185,839 million [197]. - The total employee benefit obligations decreased to 32,296 million in 2022, representing a reduction of approximately 5.76% [205].
Ampco-Pittsburgh(AP) - 2023 Q4 - Annual Report