Financial Performance - Net sales for the three months ended June 30, 2021, were $92,428,000, an increase of 23.5% compared to $74,778,000 for the same period in 2020[9]. - Net income attributable to Ampco-Pittsburgh for the three months ended June 30, 2021, was $1,063,000, compared to $668,000 for the same period in 2020, representing a 59.1% increase[9]. - The company reported operating costs and expenses of $91,959,000 for the three months ended June 30, 2021, up from $74,864,000 in the same period of 2020, marking a 22.8% increase[9]. - Basic net income per share attributable to Ampco-Pittsburgh common shareholders for the three months ended June 30, 2021, was $0.06, compared to $0.05 for the same period in 2020[9]. - Comprehensive income for the three months ended June 30, 2021, was $2,861,000, compared to $4,618,000 for the same period in 2020[12]. - For the three months ended June 30, 2021, net income was $1,224 thousand, compared to $861 thousand for the same period in 2020, representing a 42.2% increase[15]. - The total comprehensive income for the six months ended June 30, 2021, was $2,717 thousand, up from $4,823 thousand for the same period in 2020, indicating a decrease of 43.6%[15]. Assets and Liabilities - Total current assets increased to $185,953,000 as of June 30, 2021, from $171,832,000 as of December 31, 2020, reflecting an increase of 8.2%[6]. - Total liabilities decreased slightly to $377,346,000 as of June 30, 2021, from $378,209,000 as of December 31, 2020, a reduction of 0.2%[6]. - The company’s total shareholders' equity increased to $91,608,000 as of June 30, 2021, from $84,999,000 as of December 31, 2020, an increase of 7.5%[6]. - Cash and cash equivalents decreased to $13,313,000 as of June 30, 2021, from $16,842,000 as of December 31, 2020, a decline of 20.0%[6]. - As of June 30, 2021, total inventories increased to $78.935 million from $73.243 million as of December 31, 2020, representing a growth of approximately 7.5%[29]. - Property, plant, and equipment net value decreased to $158.621 million as of June 30, 2021, from $162.098 million as of December 31, 2020, a decline of about 2.9%[31]. - Intangible assets net value decreased to $6.654 million as of June 30, 2021, from $7.217 million as of December 31, 2020, a reduction of approximately 7.8%[32]. Cash Flow and Investments - Cash flows from operating activities for the six months ended June 30, 2021, were $(2,754) thousand, a significant decline compared to $31,435 thousand for the same period in 2020[17]. - The company reported a net cash flow used in investing activities of $(6,536) thousand for the six months ended June 30, 2021, compared to $(3,200) thousand for the same period in 2020[17]. - The total cash and cash equivalents at the end of the period on June 30, 2021, were $13,313 thousand, down from $15,874 thousand at the end of June 30, 2020[17]. - The company incurred stock-based compensation of $1,028 thousand for the six months ended June 30, 2021, compared to $477 thousand for the same period in 2020, reflecting a 115.5% increase[15]. Segment Performance - The FCEP segment produces forged hardened steel rolls and cast rolls, primarily serving the steel, aluminum, and other metal industries, with operations in the U.S., England, Sweden, and Slovenia[20]. - The ALP segment includes divisions that manufacture custom-engineered heat exchange coils, air handling systems, and centrifugal pumps, serving various industries including power generation and industrial manufacturing[21]. - Net sales for the Forged and Cast Engineered Products segment increased to $71,028 thousand in Q2 2021 from $50,460 thousand in Q2 2020, representing a growth of 40.9%[86]. - Total reportable segments' net sales reached $92,428 thousand in Q2 2021, up from $74,778 thousand in Q2 2020, marking a 23.5% increase[86]. - Income before income taxes for the total reportable segments improved to $3,736 thousand in Q2 2021 from $2,423 thousand in Q2 2020, reflecting a 54.1% increase[86]. Asbestos Liability - Total active asbestos claims at the end of the six months ended June 30, 2021, were 3,159, a decrease from 6,254 claims at the end of the same period in 2020[76]. - The reserve for Asbestos Liability at June 30, 2021, was $170.78 million, down from $227.92 million at December 31, 2018[81]. - Insurance receivable for asbestos claims at the end of the six months ended June 30, 2021, was $112.28 million, compared to $125.11 million at the end of the same period in 2020[82]. - The average gross settlement and defense costs per claim resolved for the six months ended June 30, 2021, was $20.09 thousand, significantly lower than $47.71 thousand in 2020[76]. - New asbestos claims served during the six months ended June 30, 2021, totaled 642, an increase from 492 claims in the same period of 2020[76]. Debt and Financing - Outstanding borrowings as of June 30, 2021, totaled $40,882 million, an increase of 10% from $37,243 million on December 31, 2020[39]. - The Revolving Credit and Security Agreement had outstanding borrowings of $10,131 million as of June 30, 2021, with an average interest rate of approximately 4% for the six months ended June 30, 2021[41]. - The Corporation's long-term debt increased to $26,613 million as of June 30, 2021, from $24,807 million as of December 31, 2020[39]. - The Corporation's commitments for future capital expenditures, including a significant capital program, approximated $18,400 million as of June 30, 2021[51]. Foreign Sales and Currency - Foreign net sales for the six months ended June 30, 2021, reached $90,854 million, up from $86,054 million in 2020, reflecting a growth of 3.3%[66]. - The corporation hedged approximately $2,362 million of anticipated foreign-denominated sales as of June 30, 2021, with fair value contracts settling through January 2022[57]. - Gains on foreign exchange transactions included in other income for the three months ended June 30, 2021, were $147 million, compared to $633 million for the same period in 2020[58]. - The fair value of foreign currency sales contracts recorded as of June 30, 2021, was $712 million, down from $1,123 million as of December 31, 2020[59]. Stock-Based Compensation - Stock-based compensation expense for the three months ended June 30, 2021, was $482,000, up from $113,000 in the same period of 2020, representing a 326.5% increase[72]. - The company approved an amendment to its 2016 Omnibus Incentive Plan to issue an additional 1.6 million shares, increasing the total authorized shares to 2.7 million[72].
Ampco-Pittsburgh(AP) - 2021 Q2 - Quarterly Report