Investing

Activist GAMCO Ups Stake in Metals Supplier Ampco-Pittsburgh (AP) - Here's Why

Fintel Staff

Published: November 23, 2022 9:31 pm

Fintel reports that Gamco Investors, Inc. Et Al has filed a 13D/A form with the SEC disclosing ownership of 3,127,113 shares of Ampco-Pittsburgh Corp (AP). This represents 15.17% of the company.

In their previous filing dated March 19, 2021 they reported 2,739,418 shares and 13.65% of the company, an increase in shares of 14.15% and an increase in total ownership of 1.52% (calculated as current – previous percent ownership).

Ampco-Pittsburgh Corporation manufactures and sells highly engineered, high-performance specialty metal products and customized equipment utilized by industry throughout the world. Through its operating subsidiary, Union Electric Steel Corporation, it is a leading producer of forged and cast rolls for the global steel and aluminum industry. It also manufactures open-die forged products that principally are sold to customers in the steel distribution market, oil and gas industry, and the aluminum and plastic extrusion industries.

The Corporation 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. It operates manufacturing facilities in the United States, England, Sweden, Slovenia, and participates in three operating joint ventures located in China. It has sales offices in North and South America, Asia, Europe, and the Middle East. Corporate headquarters is located in Carnegie, Pennsylvania.

In their most recent earnings update, the company reported the following highlights:

• Reported net sales of $99.6 million and $296.7 million, respectively, for the three and nine months ended September 30, 2022, compared to $81.2 million and $260.4 million for the three and nine months ended September 30, 2021, respectively. The increase is primarily attributable to higher selling prices and variable-index surcharges in the Forged and Cast Engineered products and a higher level of shipments in both segments, offset in part by unfavorable foreign exchange translation.
• Net income was $0.8 million, or $0.04 per diluted share, and $2.9 million, or $0.15 per diluted share, for the three and nine months ended September 30, 2022, respectively. This compares to a net loss of $1.6 million, or $0.08 per diluted share, and $0.4 million, or $0.02 per diluted share, for the three and nine months ended September 30, 2021, respectively.
• (Loss) income from operations for the three and nine months ended September 30, 2022, was $(0.1) million and $0.8 million, respectively, compared to (loss) from operations of $(2.4) million and $(1.0) million for the three and nine months ended September 30, 2021, respectively. The change primarily reflects inflationary increases in operating costs being approximately offset by higher pricing and variable-index surcharges, the benefit of a higher volume of shipments, and, for the year-to-date period, the favorable impact of an employee benefit change.
• Investment-related income for the three months ended September 30, 2022, improved compared to the prior year due to the timing of dividend income received in the quarter from one of the Corporation?s Chinese joint ventures, but declined in amount for the nine months ended September 30, 2022 compared to the prior year. Interest expense for the three and nine months ended September 30, 2022, increased in comparison to the prior year based on higher bank debt and higher interest rates. Other ? net for the three and nine months ended September 30, 2022, increased in comparison to the prior year due primarily to higher gains on foreign exchange transactions, offset in part by Rabbi Trust mark-to-market losses in the current year periods.

What are other large shareholders doing?

Rutabaga Capital Management Llc/ma holds 1,144,269 shares representing 5.90% ownership of the company. In it’s prior filing, the firm reported owning 963,651 shares, representing an increase of 15.78%. The firm increased its portfolio allocation in AP by 23.14% over the last quarter.

Ancora Advisors, LLC holds 1,068,531 shares representing 5.51% ownership of the company. No change in the last quarter.

Ameriprise Financial Inc holds 1,015,814 shares representing 5.24% ownership of the company. In it’s prior filing, the firm reported owning 973,714 shares, representing an increase of 4.14%. The firm decreased its portfolio allocation in AP by 80.72% over the last quarter.

Gabelli Funds Llc holds 746,375 shares representing 3.85% ownership of the company. No change in the last quarter.

What is the overall Fund Sentiment?

There are 93 funds or institutions reporting positions in Ampco-Pittsburgh Corp. This is an increase of 1 owner(s) or 1.09%.

Average portfolio weight of all funds dedicated to Ampco-Pittsburgh Corp is 0.1216%, a decrease of 15.3016%. Total shares owned by institutions increased in the last three months by 1.56% to 12,056,788 shares.

Fintel’s Fund Sentiment Score is a quantitative model that ranks companies from zero to 100 based on Fund Sentiment. Fund Sentiment is important because it tells you if funds are buying or selling – and in particular how the company ranks compared to other companies in the investing universe.

This article originally appeared on Fintel.