Press Room - 2016 Price Increase
- Created on Monday, 13 June 2016 13:00
Melanie L. Sprowson
Director, Investor Relations
FOR IMMEDIATE RELEASE
June 13, 2016
Ampco-Pittsburgh Subsidiaries to Increase Price on Forged and Cast Rolls
Carnegie, PA (June 13, 2016) – Ampco-Pittsburgh Corporation (NYSE: AP) announced today that its subsidiary, Union Electric Steel Corporation (“Union Electric Steel”), will raise prices on forged and cast roll products that it and its subsidiaries produce globally. These subsidiaries include the recently acquired companies formerly comprising the Åkers Group (“Åkers”). This increase is effective July 1, 2016, or as relevant contract terms permit.
For more than five years, Union Electric Steel’s customers in the steel industry faced challenging market conditions, including severe pricing pressure on their products. Union Electric Steel, including Åkers, supported the industry throughout this difficult period by agreeing to price concessions on forged and cast rolls. The compounding effect of these annual roll price decreases has had a significant adverse effect on Union Electric Steel’s financial performance.
Commenting on the announcement, Rodney Scagline, President of Union Electric Steel, stated, “In 2016, global steel prices have reportedly increased by approximately 25% which, we believe, should have a positive effect on steel manufacturers’ financial results. The modest price increase that we are announcing today is intended to begin the recovery process for our roll business, and place Union Electric Steel on a path to profitability. Pricing will be determined on a by-product basis for both forged and cast roll products, but should average five percent.”
About Ampco-Pittsburgh Corporation
Ampco-Pittsburgh Corporation, through its operating subsidiaries, is a leading producer of forged and cast rolls for the worldwide steel and aluminum industries as well as ingot and open die forged products for the oil and gas, aluminum, and plastic extrusion industries. It is also a producer of air and liquid processing equipment, primarily custom-engineered finned tube heat exchange coils, large custom air handling systems and centrifugal pumps. Ampco-Pittsburgh Corporation operates manufacturing facilities in the United States, United Kingdom, Sweden, Slovenia, and China. Sales offices are located in North and South America, Asia, Europe, and the Middle East. Corporate headquarters is located in Carnegie, Pennsylvania.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about sales levels, restructuring, profitability and anticipated synergies, expenses and cash outflows. All forward-looking statements involve risks and uncertainties. All statements contained herein that are not clearly historical in nature are forward-looking, and words such as "believe," "anticipate," "expect," "estimate," "may," "will," "should," "continue," "plans," "intends," "likely," or other similar words or phrases are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, in other press releases, written statements or documents filed with the Securities and Exchange Commission, or in Ampco-Pittsburgh Corporation communications with and discussions with investors and analysts in the normal course of business through meetings, phone calls and conference calls, regarding expectations with respect to sales, earnings, cash flows, operating efficiencies, product introduction or expansion, the benefits of acquisitions and divestitures or other matters as well as financings and repurchases of debt or equity securities, are subject to known and unknown risks, uncertainties and contingencies. Many of these risks, uncertainties and contingencies are beyond our control, and may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect such forward-looking statements, include, among other things general economic and business conditions, demand for Ampco-Pittsburgh’s goods and services, competitive conditions, interest rate and foreign currency rate fluctuations, availability of key raw materials and unfavorable resolution of claims against the Corporation, as well as those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Ampco-Pittsburgh, particularly our latest annual report on Form 10-K and subsequent filings. Any forward-looking statements in this release speak only as of the date of this release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.